2010 Mitsubishi Lancer Aces New Roof Test, Named Top Safety Pick
The 2010 Mitsubishi Lancer Ralliart is quick, nimble, and fun to drive, as we reported last week in a comparison with the new 2011 Subaru Impreza WRX. That said, it might come as a bit of a surprise that the Lancer family has been called one of the best models on the market for passive safety.
The Insurance Institute for Highway Safety (IIHS) has already reported top results in frontal, side, and rear impact tests from the IIHS—and after recently giving the Lancer its new roof-strength-based rollover test, the agency has awarded its top score there as well.
Altogether, the Lancer is a Top Safety Pick for 2010. And it's a more exclusive crowd than before, as the field of vehicles to receive this accolade is much reduced this year with the new test. Several models, including the new Honda Accord Crosstour, haven't been able to achieve the top tier because of performance in the new roof test.
Phased in for the 2010 model year, the new test measures protection in the event of a rollover by seeing how much constant pressure the roof will take, in a particular location, before it deforms five inches. A lower score corresponds to a greater likelihood of head and neck trauma in a rollover. To get a 'good' rating, a vehicle must withstand more than four times its body weight, and the Lancer took a respectable 4.31 times.
According to Mitsubishi spokesman Maurice Durand, the top-performance 2010 Mitsubishi Lancer Evolution is close enough structurally to the Lancer and Lancer Ralliart such that those results would apply across the entire Lancer lineup.
[IIHS]
This story originally appeared at The Car Connection
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Zero-Percent Deals Break Through Auto-Affordability Decline
As the auto industry gradually crawls back toward a recovery, car shoppers this winter and spring might have been stymied by one quite significant roadblock: rising interest rates.
Although plenty of deals have been had, higher interest rates and more difficult-to-secure financing have been chipping away at auto affordability. According to Comerica Bank's latest Auto Affordability Index, it actually took a little more income in the first quarter of this year than it did in the last quarter of 2009. Despite all the deals, the average total cost of buying and financing a new car has gone up by $500 versus the last quarter, to $27,500.
Though income actually rose at a two-percent rate (on an annual basis), average loan rates rose to 4.3 percent, from a 2009 average of 3.8 percent. Altogether, it takes about 23.4 weeks of median family income to buy a new vehicle.
Auto affordability was at a record high last summer, when thanks to low transaction prices as well as low finance rates it took a record 22 weeks of income to afford a car.
During May, more automakers are offering zero-percent financing deals on some of their vehicles than are not—thanks to their more loose-lending captive-finance companies. GM (Chevrolet, Buick, Cadillac, and GMC), Chrysler (Chrysler, Dodge, and Jeep), Ford (Ford, Mercury, and Lincoln), Hyundai, Kia, Mazda, Mitsubishi, Nissan, Saab, Suzuki, Toyota, Volkswagen, and Volvo are all currently offering special zero-percent loans on at least some of their models. Some of them extend for up to 72 months or are offered in combination with additional cash back.
Some automakers, such as Mitsubishi, have extended zero-percent to all their vehicles; so unexpected deals can be had in some cases even on enthusiast models or new, desirable ones. Zero-percent, for instance, applies to the 2010 Mitsubishi Lancer Evolution or new-for-2010 Mitsubishi Outlander GT.
With consumer credit still tight, and base rates certainly not going down, this spring might be the window of opportunity—and affordability—for those thinking about a new car to get one in the driveway.
This story originally appeared at The Car Connection
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Confirmed: 2011 Mitsubishi Outlander Sport To Debut At NY Show
The press-day reveals of the New York Auto Show are still nearly six weeks away, but we can already pencil in another important debut: an all-new Mitsubishi hatchback (or crossover) that might help awaken the brand from a sales slumber.
The RVR, which we previewed a few months ago, will be sold in Europe as the ASX and will arrive in the U.S. this fall as the Outlander Sport, Mitsubishi confirmed today to TheCarConnection.com.
This all-new vehicle slots into Mitsubishi's U.S. lineup just under the Outlander, according to spokesman Maurice Durand, and it will go on sale this fall.
At about 169 inches long, riding on a 105-inch wheelbase, the new 2011 Mitsubishi Outlander Sport is an all-new body style, not to be confused with the Toyota RAV4-sized Outlander, and will land right between the Suzuki SX4 Sportback and the Toyota Matrix (or roughly the size of the Dodge Caliber)—appealing to those who want a hatchback with a hint of extra crossover utility.
In Japanese-market versions, Mitsubishi is equipping the RVR with regenerative braking, HID headlamps, and a TV tuner. We'd say that extravagance is unlikely, but we do expect several other features—including a panoramic sunroof, hard-drive-based navigation system, and USB and Bluetooth connectivity, likely from the new Fuse interface that made its debut in the 2010 Outlander GT and will be installed in the Lancer line next year.
2010 Mitsubishi Outlander Bottom Line
To get you the most useful information regarding the Mitsubishi Outlander, TheCarConnection.com has driven the refreshed 2010 Outlander GT, then selected highlights—including firsthand observations and comparisons to other models here in this Bottom Line—from reputable reviews from other sources.
Likes
Styling—especially new front end
Smooth, strong performance from V-6
Superb steering and handling
GT feels like a sport sedan
Dislikes
Boomy, slow four-cylinder
Road noise
Nearly useless third-row seat
Steering wheel doesn't telescope
Mitsubishi's Outlander compact crossover vehicle goes into 2010 with an all-new front end, a refreshed interior, and the introduction of the top-of-the-line Outlander GT model, plus next-generation technology features.
A subtle set of design changes takes the Outlander in a more carlike direction on the outside for 2010, with fewer rugged SUV cues and the sharklike "jet fighter" snout inherited from the Evo. Along with the front-end changes, the 2010 Mitsubishi Outlander gets new aero work in front, a mesh grille, a new rear fascia, redesigned hood and fenders, and on most models, chrome-accented side-sill extensions. Inside there are some much-needed soft-touch materials, including, for the top trims, soft double-stitched synthetic leather padding where elbows go and for some of the dash. The vents and dials also get new bright accents, and all but the base model gets a new multicolor LCD instrument display. Altogether, the Outlander now looks sportier on the outside and doesn't feel nearly as cut-rate inside.
A 2.4-liter four-cylinder engine, making 168 horsepower, is standard on ES and SE models of the 2010 Outlander, but we'd probably discourage it for most buyers as it brings barely adequate performance with its continuously variable automatic transmission (CVT) and generates too much engine noise while accelerating. The 3.0-liter V-6 engine that's featured on XLS and GT models has a completely different personality, producing 220 horsepower delivered through a responsive, easy-shifting six-speed automatic with steering-wheel paddles. It has a lot more power to spare and gets fuel economy approaching that of the four on the highway. ES, SE, and XLS models of the Outlander remain offered with a choice of front-wheel drive or 4WD (with a center diff lock), while the new GT is the first Outlander to inherit an application of the Super-All Wheel Control (S-AWC) system used in the Evo and Ralliart. The system includes Tarmac, Snow, and Lock modes, selected with a knob on the center console, to cater the system's responses to specific conditions, with an Active Front Differential and electronically controlled center diff, for more seamless distribution of torque between the wheels.
No matter what the model, the Outlander has good, communicative steering. And like the Lancer, with which it shares some of its underpinnings, the Outlander handles better on the road than some of the more trucklike or rugged utility vehicles, with the nice, firm braking of a performance car. But the ride is quite firm, and it can be choppy over railroad tracks and the like. Also, at 3,780 pounds, the GT is just too heavy to be called agile (even though aluminum roof panels and other measures help keep the center of mass low). We also like the Outlander GT's paddle shifters, which are mounted alongside—rather than on—the steering wheel, making them easier to locate in tight hairpins, for instance.
About a foot shorter in overall length than most mid-size sedans, the 2010 Mitsubishi Outlander has good space for five, though its available seven-passenger seating—including a small third row—is a little optimistic. Even small children will feel the squeeze in back, but the second row slides fore and aft and reclines for good comfort, and the third and second rows fold to create an impressive, continuous cargo space of nearly 73 cubic feet behind the front seats. Cargo space is plentiful behind the second row, at 36.2 cubic feet but limited behind the third, at 14.9 feet. In front, several testers find the Outlander's driver's seat and seating position to be about right, though the steering wheel doesn't telescope, which might be an issue for shorter drivers. The backseats feel a little thin and flat, as they do in most other vehicles in this class, but they fold and tumble to a flat cargo floor. The Outlander has a rear tailgate configuration that's somewhat complex and clunky, but we can see owners finding it handy; the fold-down tailgate can support 440 pounds. Materials remain a bit of a disappointment, even though they're again improved for 2010. Up close, there's quite a lot of hard, dull plastic, though the upper dash now includes soft coverings and chrome-finished controls in some trims.
The Outlander has done extremely well in crash tests; it gets nearly perfect "good" scores from the IIHS for frontal offset and side impact, as well as in the seat-based rear-impact test. Its only blemish is an "acceptable" score in the new IIHS roof-strength test. It earns top five-star ratings in the federal government's frontal impact and side impact exams. All Outlanders come with front side airbags, side curtain bags covering the first two rows, front active headrests, electronic stability control, and anti-lock brakes.
The base 2010 Mitsubishi Outlander ES model has the four-cylinder and keeps it simple, though it includes air conditioning, keyless entry, and a 140-watt, six-speaker sound system. At the top of the lineup, the luxurious XLS picks up fog lamps, steering-wheel audio controls, remote start, cruise control, and automatic climate control, plus the new FUSE hands-free link system, controlling audio and calling functions with voice commands. The GT includes, along with other appearance extras, rain-sensing wipers, heated mirrors, leather seats, bi-xenon HID headlamps, and a more powerful 710-watt Rockford Fosgate premium sound system with nine speakers and a huge 10-inch subwoofer. The only major option is the $3,000 Premium Navigation and Leather Package, which adds a power driver's seat, heated front seats, leather upholstery, a rearview camera system, and a 40GB hard-drive nav system with music server, real-time traffic, and carpool lane guidance.
The Bottom Line: The Mitsubishi Outlander has a sportier look and feel than most crossover utes—and it gets better for 2010.
Other Choices
If you like the 2010 Mitsubishi Outlander, also consider:
- Honda CR-V
- Mazda CX-7
- Subaru Forester
- Toyota RAV4
Reason Why:
The most direct rival to the 2010 Outlander is likely the Toyota RAV4 Sport, which, like the Outlander, can be equipped with a small third-row seat. The RAV4 is much more refined and agreeable with the base four-cylinder engine, while its optional V-8 is even more powerful. The Forester is another top rival; in this case, too, the standard four in the Outlander doesn't seem nearly as strong as the standard flat-four in the Subaru, even though their power figures are close. The Mazda CX-7 seats only five, but it's perceived as a more complete performance package, with very comfortable seating, sporty suspension tuning, and a rorty turbocharged engine; for 2010 there's also a new base version, with a still-adequate 2.5-liter four, that costs a bit less. The Forester and CR-V remain the best for those who are safety-minded; they're both IIHS Top Safety Picks. For those who don't need a third row but want a roomy, comfortable interior, the Honda CR-V is probably the best pick, though it's not nearly as engaging to drive.
Buying Tip
If you want a hatchback but aren't sure you need the height and weight of the 2010 Mitsubishi, you might consider the new Sportback versions of the 2010 Mitsubishi Lancer GTS and Ralliart.
This story originally appeared at The Car Connection
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2010 Mitsubishi Galant Bottom Line
Here in this Bottom Line covering the 2010 Mitsubishi Galant, the editors of TheCarConnection.com bring you driving impressions and an expert take on how the Galant matches up against other mid-size sedans. To give you an even more comprehensive take, TheCarConnection.com has also read a range of reviews on the Galant and bring you excerpts in a full review.
Likes
Backseat space
Smooth ride
Standard safety features
Dislikes
Outdated look and feel
Inferior cabin materials
Engine is noisier than rival four-cylinders
The 2010 Mitsubishi Galant limps on for another year, with its lineup quite dramatically cut. V-6 models, along with the performance Ralliart model, have been dropped from the lineup, leaving only four-cylinder ES and SE models of this mid-size sedan.
Although the Galant has seen a number of minor refreshes over the years, it's been carried over for the most part since its last major redesign, for 2004. With most mid-size sedans seeing one (some two) redesigns since then, it feels a little outdated from a style standpoint, to put it nicely. Last year Mitsubishi gave it a new lower grille mesh on all ES trim levels, which has now been expanded to both models. Inside, the Galant has weathered the storms of time much better, and aside from feeling a little drab, the design still appears attractive, if not a little basic.
If you don't expect a lot out of the driving experience, the Galant will reward you with well-rounded competence. The sole engine in the 2010 Mitsubishi Galant is the 160-horsepower 2.4-liter four-cylinder, with a four-speed automatic transmission. The available V-6 and five-speed automatic of previous years is gone. With the four, the Galant is generally pleasant to drive, provided you don't push it too hard. On all versions, the steering is nicely weighted, brake modulation good, and pedal travel short. Fuel economy is respectable, too, at 20 mpg city, 27 highway.
The interior, if you can get past the somewhat drab, low-rent appearance up close, is roomy and comfortable. The front seats have plenty of room, and so do the deeply set backseats. One definite miss is that the rear seatback doesn't fold forward—there's only a pass-through. The soft suspension tuning absorbs most road impacts well, and there's plenty of insulation from road and wind noise, though the engine can get noisy up steep grades or during passing. Most notably, the interior is covered in industrial-looking trim, and in general, the dark, plastic-addicted cabin needs a richer look and feel.
Anti-lock brakes, dual-stage front airbags, front seat-mounted side-impact airbags, and side front and rear curtain airbags are all now standard on the 2010 Mitsubishi Galant, along with electronic stability control. The federal government rates the Galant with four stars for rollover protection, but other ratings have not been revealed.
The Galant has been reconfigured in recent years to offer a lot of features for the money. Base 2010 Mitsubishi Galant ES models come with most popular features like cruise control, air conditioning, keyless entry, and a 140-watt, six-speaker sound system, while SE models add automatic climate control, heated seats, hands-free Bluetooth, and a Rockford Fosgate audio system, plus lots of equipment that make the Galant SE look, if not feel, sportier, such as larger alloy wheels, a spoiler, and fog lamps. The former Navigation and Rearview Camera Package has now been rolled into the SE's list of features, leaving no significant factory options.
The Bottom Line: The 2010 Mitsubishi Galant is adequate in most respects—and surprisingly comfortable. But it's not exciting or class-leading in any way.
Other Choices
If you like the 2010 Mitsubishi Galant, also consider:
- Kia Optima
- Nissan Altima
- Honda Accord
- Chevrolet Malibu
Reason Why:
One of the Mitsubishi Galant's top rivals is the Kia Optima. Like the Galant, the Optima doesn't possess a lot of personality, but it's thoroughly competent. Both vehicles place an emphasis on ride quality above driving dynamics. The Chevrolet Malibu is an option that feels positively lavish next to the Galant, with a strong V-6 or four-cylinder and a beautiful, refined interior. The Honda Accord remains at the top of the class, especially for those who value interior appointments and a premium, luxurious feel. And for those who enjoy driving a bit more, the Nissan Altima has a sportier feel, with more overt styling and better handling.
Buying Tip
With '09 Galants still available at the time of writing, there will likely be very few 2010 Mitsubishi Galants. You might be better off just getting thousands of dollars off a 2009.
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Kelley Names Toyota, Lexus Best Brands For Resale Value
Residual value is a common concern of car buyers, especially during tough times like these. Accordingly, shoppers might be interested to know that Kelley Blue Book's kbb.com® 2010 Residual Value Study has given the Toyota brand its Best Resale Value Award. (Curiously, this is the first time that Toyota has received the honor.) Toyota's upscale sibling, Lexus, nabbed the Best Resale Value Award for luxury brands.
But Toyota Motor Corporation wasn't the only winner of the day. On the make and model front, Kelley singled out ten vehicles for their superior resale value: the 2010 Audi A5, the 2010 BMW M3, the 2010 Chevrolet Camaro, the 2010 Chevrolet Corvette, the 2010 Honda CR-V, the 2010 MINI Cooper, the 2010 MINI Cooper Clubman, the 2010 Toyota Prius, the 2010 Toyota RAV4, and the 2010 Toyota Tacoma. Although no Ford or Chrysler vehicles made Kelley's top ten list, the Ford F-Series Super Duty and the Ford Taurus did come in at the top of their categories (full-size pickup and full-size car, respectively). We should also note that Jeep was named the top domestic brand, with its models retaining almost 36% of their value after five years.
At the bottom end of the scale, we find an assortment of Hyundais, Kias, Mitsubishis, and two Ford cars. From Kelley's release:
The 2010 vehicles with the lowest projected resale value after five years of ownership include: Hyundai Azera, Kia Amanti, Kia Optima, Kia Rio, Kia Rondo, Kia Sedona, Lincoln Town Car, Mercury Grand Marquis, Mitsubishi Endeavor and Mitsubishi Galant. Half of these 2010 model-year vehicles are projected to maintain less than 20 percent of their original MSRP after five years of ownership.
Generally speaking, 2010 models are projected to fare slightly worse than their 2009 predecessors. According to Kelley, "In 2009, the average vehicle maintained 34.2 percent of its original value after five years in contrast to 2010 models, which are projected to maintain an average of 32.6 percent of their original Manufacturer's Suggested Retail Price (MSRP)." That's good information to know -- particularly now that our wise investments need to be just a tad wiser.
Check the full press release below for more information.
* * * * *
KELLEY BLUE BOOK'S KBB.COM® RELEASES 2010 RESIDUAL VALUE ANALYSIS
Toyota and Lexus Claim Top Honors for 2010 Models, U.S. Brands Improve Resale Values
IRVINE, Calif., December 2, 2009 - Kelley Blue Book www.kbb.com, the leading provider of vehicle values and forecasts, today announces the 2010 model-year vehicles projected to retain the greatest amount of their original retail prices after five years of ownership. Kelley Blue Book's residual values are a reflection of current vehicle data, market conditions for each vehicle, competition in each segment, expectations of the future economy and the combined experience of Kelley Blue Book's team of statisticians, economists and pricing analysts.
Using information gained from Kelley Blue Book's analytical and predictive models for both new- and used-vehicle values and its economic forecasts, the company determined one overall brand and one luxury brand as having the best projected overall resale value across their respective 2010 fleets, named resale value leaders in 16 major vehicle segments, and honored the top 10 overall residual value leaders for 2010.
2010 BEST RESALE VALUE: BRAND
Toyota
2010 BEST RESALE VALUE: LUXURY BRAND
Lexus
2010 BEST RESALE VALUE: TOP 10 MODELS
Audi A5
MINI Cooper
BMW M3
MINI Cooper Clubman
Chevrolet Camaro SS
Toyota Prius
Chevrolet Corvette
Toyota RAV4
Honda CR-V
Toyota Tacoma
2010 BEST RESALE VALUE: BY VEHICLE CATEGORY
MID-SIZE PICKUP: Toyota Tacoma
HIGH-PERFORMANCE CAR: Chevrolet Camaro SS
FULL-SIZE PICKUP: Ford F-Series Super Duty
HYBRID/ALT. FUEL CAR: Toyota Prius
COMPACT UTILITY VEHICLE: Honda CR-V
COMPACT CAR: MINI Cooper Clubman
MID-SIZE UTILITY VEHICLE: Toyota Highlander
MID-SIZE CAR: Honda Accord
FULL-SIZE UTILITY VEHICLE: Honda Pilot
FULL-SIZE CAR: Ford Taurus
LUXURY UTILITY VEHICLE: Lexus RX 350
NEAR-LUXURY CAR: Lexus IS
HYBRID/ALT. FUEL UTILITY VEHICLE: BMW X5 Turbo Diesel
LUXURY CAR: Audi A5
VAN: Toyota Sienna
SPORTS CAR: Nissan 370Z
(All values based on the November/December 2009 Kelley Blue Bookâ Residual Value Guide. Top 10 models appear in alphabetical order).
A Look at 2009 and 2010 Residual Forecasts
For the last several years, the average vehicle has maintained close to 35 percent of its original value after five years. The downturn in the economy has hit the automotive sector hard in the last year. Consumers are feeling the pinch not just in the depreciation of their home, but also in the value of their vehicle, as Kelley Blue Book is seeing residual values of new cars suffer compared to last year. In 2009, the average vehicle maintained 34.2 percent of its original value after five years in contrast to 2010 models, which are projected to maintain an average of 32.6 percent of their original MSRP.
The last 18 months have been extremely volatile from both a sales and valuation perspective. However, based on Kelley Blue Book's latest valuation methodology and forecasting abilities, the company's analysts project that the New Year should mark a return to more normal depreciation patterns. Additionally, it is expected that the lower rental volume will contribute to a more limited supply of used cars, which may result in rising values in some segments in the coming years.
While the government took its time declaring the nationwide recession, it has been quick to announce that economically, we have turned the corner. As data shows a healthier economy in 2010, Kelley Blue Book analysts expect that recovery in the auto industry will be gradual and prolonged. One factor helping the industry is stabilizing gas prices. Kelley Blue Book is forecasting that gas prices will be stable through the next three to five years with per-gallon prices remaining between $2.66 and $3.50. This predicted long-term stability in fuel prices reduces market variability and allows financial institutions to better manage their lease portfolio.
Best Resale Value Brands
This year's 2010 overall Best Resale Value: Brand award goes to Toyota. For the first time, Kelley Blue Book also named a Best Resale Value: Luxury Brand, and that prestigious honor is awarded to Toyota's upscale sibling, Lexus. On average, 2010 vehicles under the Toyota nameplate are expected to maintain 38.8 percent of their MSRP after five years, and Lexus vehicles are projected to maintain 39.3 percent.
For 2010, the brands projected to best maintain their value should be congratulated for making it though a volatile marketplace defined by economic uncertainty and significant drops in fuel prices. On the 2010 list, the gap between the brands at the top and the rest of the pack is closing. Overall, products are getting better in quality and in value, driving greater competitiveness and slower depreciation.
Criteria for Kelley Blue Book's Best Resale Value Awards require a brand to have a minimum of four nameplates in its portfolio, a factor that eliminates the highest-ranking brand performer year-after-year, MINI, which carries an average five-year residual percentage of 45.9 percent for its 2010 models.
Below is a look at some of the brand ranking changes over the last year:
Top 10 Brands: Best Resale Value 2010 | |
| 1. Lexus 39.3 | 1. Honda 44.5 |
| 2. Toyota 38.8 | 2. Toyota 42.7 |
| 3. Honda 38.0 | 3. Volkswagen 40.9 |
| 4. BMW 37.2 | 4. Subaru 39.4 |
| 5. Subaru 36.6 | 5. Lexus 38.7 |
| 6. Jeep 35.7 | 6. BMW 38.0 |
| 7. Acura 35.2 | 7. Infiniti 37.3 |
| 8. Infiniti 34.5 | 8. Acura 36.8 |
| 9. Audi 34.2 | 9. Audi 36.5 |
| 10. Nissan 33.7 | 10. Nissan 36.5 |
Despite lower residual estimates for the fuel-efficient segments and a drop in overall brand value of 3.9 percentage points from 2009, Toyota still takes the 2010 award for Best Resale Value: Brand.
"Values in the compact, fuel-efficient segment dropped severely, which hit Toyota, known for fuel efficiency, quite hard," said Eric Ibara, director of residual consulting for Kelley Blue Book. "While the Yaris, Corolla and Matrix residuals are down double digits from 2009, the brand was given a boost by its versatile line-up--residuals in the truck segment were up 2 to 3 percentage points year-over-year, helping the brand to maintain value leadership."
Crowded Compact Market Casts Shadow on Past Winners
While popularity of small, fuel-efficient vehicles peaked last year when prices at the pump skyrocketed to more than $5 a gallon in some areas of the country, the significant drop in per-gallon prices below $3 has slowed demand. Crowding in this segment is expected to occur with the introduction of new models to meet both the rush in consumer demand when gas prices were pinching wallets in 2009 and CAFE standards. This plethora of consumer choices in is a major contributor to the drop in residuals in this segment. Kelley Blue Book forecasts stabilization in fuel prices and an increase in the number of vehicles in the segment. Manufacturers with several 2010 products concentrated in the uel-efficient segment suffered and can expect a stiff competition in the years to come.
Honda is one of the brands affected by the overcrowded compact segment. It won the top spot as Best Resale Value: Brand for both the 2007 and 2009 model years; however, Honda's 2010 models have dipped down by 6.5 percentage points to 38 percent. With heavy competition in the compact market, a majority of this drop can be attributed to the double-digit declines for the brand's Fit and Civic models of 15 and 14.5 percent points, respectively. Even with declines across the industry, these reductions in residual values have only pushed Honda down to third place behind winners Lexus and Toyota. Brand perception and quality for Honda products still rank high across the board.
The Best Resale Value: Brand winner in 2008, Volkswagen, also has seen values drop 8.5 percentage points year-over-year due to a drop in the car segment. The Beetle (32.5 percent), Jetta (32.0 percent), and EOS (37.0 percent) are major contributors to the brand's drop from Best Resale Value: Brand in 2008 to 14th place among all brands in the 2010 standings. Volkswagen's projected residual values are above the industry average. The overall decline was due in part to the aging of their product line. The Beetle was last redesigned in 1998 and the Jetta in 2005. As previously mentioned, the compact and subcompact sedan segments also are getting more crowded, which means it is more competitive to play in this market. Finally, the relatively high price of the EOS gives consumers some very competitive alternatives.
MINI, with its wildly successful Cooper, has maintained the highest residual value of any vehicle since it came to the U.S. market in 2002. However, its value is also being hampered by gas prices and competition. The brand is down nearly 13 points year-over over year to a 45.9 percent 60-month residual, but still would have won Best Resale Value: Brand if it offered more than four nameplates. The only two MINI models sold in the United States, the Cooper and Cooper Clubman, both rank among the Top 10 vehicles with highest residual values for 2010. MINI has achieved high residual values every year, a significant accomplishment given its strategy of appealing to young customers looking for a cool car.
"Kelley Blue Book expects to see a lot more vehicles introduced into the compact and subcompact segments in the coming years, along with more hybrids. All of the forecasts we've reviewed show oil holding steady at $90 a barrel over the next five years," said Ibara. "That being said, we do not expect the demand for fuel-efficient vehicles to match the increase in models and volume in the compact segment as long as gas prices remain under $4 a gallon. With softer demand, manufacturers may look to implement incentive programs to assist in depleting inventory."
Another avenue already being pursued by many of the manufacturers is improving fuel efficiency through technology. As an example, the 2010 Camaro V6 puts out more horsepower than the original 327 cubic inch V8, and almost as much horsepower as the 1967 V8 SS. The 2010 Taurus SHO is equipped with a 3.5L EcoBoost engine with an output of 365 horsepower and gets 28 mpg on the highway. Kelley Blue Book expects more diesel engines to play a role in bringing larger, yet more fuel-efficient cars to U.S. roads, although American consumers may need to be convinced that these clean-burning, fuel-efficient engines are not the diesels of 30 years ago.
Another solution to this issue of a crowded compact market may be that some manufacturers will pay the fines that come along with not meeting CAFE and continue to build vehicles that are in demand and compete better in the market. This decision will depend on the pricing and the mix of vehicles each manufacturer brings to bear.
Domestics
Residual values of vehicles produced by the domestic automakers saw an uptick versus last year. With several new-model launches from the domestics and the strength in the truck market compared to last year, each of the Detroit Three have vehicles with exceptional resale value.
| MANUFACTURER | 2010 | 2009 |
| Ford Brands | 32.4 | 31.7 |
| General Motors Brands | 31.3 | 29.5 |
| Chrysler Brands | 29.5 | 28.0 |
Ford Motor Company
Ford, the only domestic auto manufacturer not to partake in bailout funds from the Federal government, seems to be in a good position from both a cash-flow perspective and now positive projected resale values. On the strength of the truck and SUV market, the Ford brand gained 2.4 points from last year reaching a 32.8 percent brand average. Ford went from being ranked 25th in resale value among all brands last year to 12th this year. The Blue Oval also saw a lift due to redesigns of popular products such as the Mustang and the Taurus.
Other Ford brands including Lincoln and Mercury did little to lift the Ford brands' future values. A rise in both of Lincoln's SUVs, Navigator and MKX, helped to offset the heavy downward pull of the Town Car value, ending mostly flat year-over-year with a brand average of 27.1 percent. Mercury dropped 4.1 percentage points to a 28.1 percent projected residual average for 2010. The Mercury brand's decrease was due in part to the aging Mercury Marquis.
General Motors
General Motors went from nine brands to four in just the last five years. Despite the last tumultuous year, General Motors increased its combined residual average of the four remaining brands to 31.3 percent, up 1.8 percentage points from last year.
The now-defunct brands, Hummer, Saab, Ponitac and Saturn, were at 32.4 percent last year. Those brands have a 2010 average residual value of 27.7 percent, an immediate year-over-year drop of 4.7 percentage points.
| BRAND | RESIDUAL AVERAGE PERCENTAGE | CHANGE YOY |
| Chevrolet | 31.4 | + .6 |
| Cadillac | 29.4 | + 2.0 |
| Buick | 27.5 | - 2.3 |
| GMC | 31.8 | + 4.1 |
Chrysler
After emerging from bankruptcy, Chrysler struck a deal with Fiat and introduced the possibility of bringing some of Fiat's smaller European designs to the United States under the Chrysler group. However, the uncertainty of those future product plans and vehicle designs have cast a shadow over the future values of new Chrysler products. With no new redesigned Chrysler products for 2010, and an uncertain product future, the company's overall residual average for 2010 comes in at 29.5 percent.
Bankruptcy/ Defunct Brands
Kelley Blue Book reports that the bankruptcy filings themselves had little impact on residual and used car values. In fact, kbb.com observed an increase in Web site traffic for General Motors and Chrysler vehicles during the bankruptcy filings, finding consumers primarily interested in finding a good deal and not necessarily resale value, servicing or warranties down the road. Bankruptcy has left two brands in its wake so far; Pontiac and Saturn. Both of these brands are projected to meet different fates. Kelley Blue Book already is seeing other GM dealers buying used Pontiacs at auction, helping the brand to maintain its values. Pontiac's projected 2010 residual average for remaining products comes in at 25.6 percent.
Kelley Blue Book expects the impact will be more severe for Saturn, whose residual average is down 5 percentage points to 28 percent. Saturn is currently projected slightly higher than Pontiac because its two remaining models, the Outlook and the Vue, compete in the more stable SUV category.
Kelley Blue Book performed an analysis on used-car values for Oldsmobile as a case study for the possible outcomes for both Pontiac and Saturn. This included the impact of mileage, condition, seasonality, market conditions, volume, demand, competition and a number of other factors. The shutdown of Saturn is similar to the shutdown of Oldsmobile, but the two scenarios are still quite different. Oldsmobile shut down over a period of more than three years and continued to introduce new products, including the Bravada, even after the closure announcement. With Saturn, production was halted almost immediately and the sell-down of inventory is expected to occur faster. Like Oldsmobile, the impact will differ by model, where more differentiated vehicles like the Sky can expect less of an impact. The impact of the shut-down for Saturn is expected to be less severe than it was for Oldsmobile.
Vehicles with Low Resale Value
Many of the vehicles considered to be fast depreciators include vehicles with long life-cycles, high production levels and models with heavy representation in the fleet market.
The 2010 vehicles with the lowest projected resale value after five years of ownership include: Hyundai Azera, Kia Amanti, Kia Optima, Kia Rio, Kia Rondo, Kia Sedona, Lincoln Town Car, Mercury Grand Marquis, Mitsubishi Endeavor and Mitsubishi Galant. Half of these 2010 model-year vehicles are projected to maintain less than 20 percent of their original MSRP after five years of ownership.
Vehicles that have not received a full redesign in more than five years are typically at risk of ending up at the lower end of the scale. Examples on this year's list include both the Lincoln Town Car and the Mercury Grand Marquis, both of which last received new lines and looks more than a decade ago in 1998. Other vehicles with the same fate include Mitsubishi's Galant and Endeavor, as well as Kia's Amanti, all last redesigned in 2004.
"A major factor in a vehicle's residual value is the number of vehicles sold into daily rental fleet service," said Ibara. "This is an effective way to 'move the metal,' because thousands of vehicles can be sold in one phone call; however when these cars flood the market when they come out of service the prices for these vehicles can drop significantly."
Alternative-Fuel Vehicles
On average, 2010 60-month hybrid-car residuals dropped nearly 8 points to 31.2 percent, while hybrid trucks dropped less than two points to a residual average of 29.6 percent.
Year-over-year, dedicated hybrids as a sub-segment lost almost 10 points, from 51.0 percent last year to 41.6 percent in 2010. Just like in the compact segment, dropping demand for fuel-efficient vehicles and a forecast of stabilizing oil prices has weakened the outlook for hybrids in the future. Last year there was only one dedicated hybrid in the group, the Toyota Prius. This year, the Prius came with a welcomed redesign, improved fuel economy by three miles-per-gallon and included a price reduction of $1,000 from its predecessor. For 2010, there are three dedicated hybrid nameplates, the Toyota Prius, the Honda Insight and the Lexus HS. There also were 18 hybrid sisters (models that have both a pure gasoline-powered and hybrid-powered version) last year and more than 22 in 2010, also bringing a sense of crowding to this newer powertrain segment.
"Predicting values for powertrain technologies beyond conventional hybrids is very speculative at this moment," said Ibara. "The reason for this is because the performance of the engine technology is untested, particularly with regard to consumer acceptance, cost of ownership, range and reliability."
Pricing of these vehicles and the availability of government subsidies will be major consideration factors for consumers considering any new-vehicle technologies coming into the market. However, should one or several of these technologies take off within the next five years and become widely accepted, it could cause conventional hybrid values to plummet.
About Kelley Blue Book® Residual Values
Based on projections by Kelley Blue Book's expert staff of market analysts encapsulated in the Kelley Blue Book Official Residual Value Guide, the prestigious Kelley Blue Book Best Resale Value Awards honor vehicles expected to maintain the greatest proportion of their retail prices after five years of ownership. Low-volume vehicles and vehicles with a Manufacturer's Suggested Retail Price of more than $60,000 are excluded from awards consideration, except in the High Performance and Luxury categories.
While the company's Official Residual Value Guide has been published since 1981, Kelley Blue Book established its annual Best Resale Value Awards in 2003. Kelley Blue Book reports projections based on current vehicle data, sales data, market conditions for each vehicle, competition within vehicle segments, expectations of the future economy and the combined experience of Kelley Blue Book's team of market and pricing analysts. Kelley Blue Book's residual values are used by banks, financial institutions, governmental agencies and the automotive leasing industry.
For more information about Kelley Blue Book's Best Resale Value Awards, please visit www.kbb.com/BRVA2010.
About Kelley Blue Book (www.kbb.com)
Since 1926, Kelley Blue Book, The Trusted Resource®, has provided vehicle buyers and sellers with the new and used vehicle information they need to accomplish their goals with confidence. The company's top-rated Web site, www.kbb.com, provides the most up-to-date pricing and values, including the New Car Blue Book® Value, which reveals what people actually are paying for new cars. The company also reports vehicle pricing and values via products and services, including software products and the famous Blue Book® Official Guide. According to the C.A. Walker Research Solutions, Inc. - 2009 Spring Automotive Web Site Usefulness Study, kbb.com is the most useful automotive information Web site among new and used vehicle shoppers, and half of online vehicle shoppers visit kbb.com. Kelley Blue Book's kbb.com also is a W3 Gold Award winner, sanctioned by the International Academy of Visual Arts. Kbb.com is a leading provider of new car prices, car reviewsnews, used car Blue Book Values, auto classifieds and car dealer locations. No other medium reaches more in-market vehicle shoppers than kbb.com. and
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Mitsubishi, Peugeot-Citroen Consider Capital Tie-Up
Strategic partnerships are key elements in most successful business plans, and that goes double during trying economic times like these. We've seen countless alliances in the auto industry in recent years, and the next couple to hook up may be Mitsubishi Motors and PSA Peugeot-Citroen; said a Mitsubishi spokesperson: "We have been talking about whether we can have deeper relationship [with Peugeot-Citroen], and a capital tie-up is one among many options." What such a commingling might look like on paper and in practice remains uncertain, but given each company's focus on EV technology, it could easily generate some interesting developments on the tech front -- and give Mitsubishi a leg-up in the European marketplace. [WSJ]
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Mitsubishi Debuts Sync Rival, Called Fuse, In 2010 Outlander
It's about time that another automaker took on Ford's Sync hands-free communication and entertainment interface. One of the best rival systems--at least in affordable vehicles--comes from an unlikely source: Mitsubishi. The new 2010 Outlander is the first vehicle to get the handy interface.
In a way, it figures. Mitsubishi used to have a geeky reputation in the U.S. and elsewhere; many years ago now, the Japanese automaker stood out from the rest with features like all-wheel-drive, active yaw control, speed-sensitive four-wheel power steering, and high-end audio with steering-wheel controls. With recent features on offer like the excellent Twin Clutch automated gearbox and now some much-improved navigation systems and in-car conveniences like FUSE, we see some of the old flame coming back.
For a couple of years now, Ford's groundbreaking Sync system (co-developed with Microsoft) has been the reigning king of in-car interfaces--and pretty much the only game in town for providing what it does. With Sync, users get a relatively fuss-free and intuitive way of controlling audio functions, making calls, and even reading messages--all via compatible Bluetooth or USB devices. Especially when you consider affordability, as Ford has offered the feature all the way down its product lineup (even on the very affordable Ford Focus) and included it at no cost on many of its larger vehicles, it's an unbeatable convenience.
The FUSE system, which combines an all-new Johnson Controls (JCI) voice-recognition system and Bluetooth interface with Mitsubishi's next-generation nav-system screen from Mitsubishi Electric, provides some--though not all--of the features of Sync.
FUSE includes voice-activated music and phone commands and can recognize up to seven different phones, automatically synching up phonebook contents from each handset that's been paired with the system; unlike some other systems, it keeps them private to each user. While we've seen the Sync system be finicky about which phones it will or won't pair with, FUSE, we saw the system successfully pair with several different phones.
We right away noticed that you don't have nearly as many commands as you do with Ford's Sync, but just as with that system you can simply hold press a button along the steering wheel, then say, "Play Led Zeppelin," or "Play genre rock," and it does well. The command system also allows you to request playlists and albums.
As with Sync, you can hook up most major media players through the USB interface, and there's an iPod adapter. For those who also check the $3,000 Premium Navigation and Leather Package on the Outlander GT, FUSE can take control of the 10 gigabytes (out of 40 gigs) on the nav system's hard drive that are partitioned for music.
A company representative said that the onboard drive will only allow rights-protected files to be transferred over in analog form--a definite drawback. With or without the hard drive, most people today might simply opt for an inexpensive thumb drive. The system does have Bluetooth 2.0 and A2DP audio streaming, to play wirelessly from most audio devices and phones, except iPods.
Dig deeper and you'll notice that FUSE is missing a few features. For instance, it won't let you call out a specific song title, and although FUSE has seemingly excellent text-to-speech abilities on the music side, it doesn't offer that on the phone side of its operation. You can't simply ask it to "Call Joe Smith" unless you first establish a voice tag for Joe Smith--and all the other commonly used numbers in your phone book. Ford's Sync will automatically scan the hundreds of names in your phone book and pick the right one, and it will also read messages aloud through the audio system.
"What we're trying to do here is provide more convenience and a user interface that's safe," said a company representative, admitting that while the system lacks a few key features it's powerful platform and a starting point for greater features to be rolled out.
FUSE is standard on 2010 Mitsubishi Outlander XLS and GT models, while it's a standalone option for just $350 on the mid-grade SE trim (Sync has been a $395 standalone option in some vehicles). Look for the feature to be rolled out on the Lancer, Ralliart, and Evolution models soon--likely for 2011.
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2010 Mitsubishi Eclipse
To bring you both comprehensive information and an expert opinion on the 2010 Mitsubishi Eclipse, TheCarConnection.com's editors have driven both the coupe and Spyder versions, along with both engines. TheCarConnection.com has also researched road tests covering the Eclipse to bring you the most useful information on how it stacks up with other low-priced sporty rivals.
Likes
Sheer affordability, especially of Spyder
Torquey, responsive V-6
Warranty coverage
Dislikes
Tight interior
Overstyled coupe
Doesn't handle so responsively
Poor V-6 fuel economy
The Mitsubishi Eclipse is a sporty, front-wheel-drive coupe or convertible that doesn't have a lot of frills or a very refined look and feel, yet it can be reasonably entertaining to drive--especially in the V-6 versions of the coupe or Spyder.
With styling that's a little less mature and refined than the balanced design of the Honda Accord Coupe or Nissan Altima Coupe, the 2010 Mitsubishi Eclipse just isn't as pretty with its mix of lines and molten-looking, curved sheetmetal. However, its aggressive, almost giddy styling might appeal to a particular type of buyer who wants attention. Last year the Eclipse got a modest restyle in the way of restyled front and rear fascias, plus an enhanced appearance and new exhaust for the GT. For 2010, the appearance of the base GS model gets dialed up with most of those changes, even in four-cylinder form.
Inside, the plain-faced dash of the 2010 Eclipse is made with good-quality materials that are fitted together well. The front seats are supportive, but the interior is intimate and many drivers might find headroom tight in the coupe; the rear seats are uncomfortable for adults.
The 162-horsepower, 2.4-liter, four-cylinder engine that's standard on the base Eclipse GS and GS Sport quite simply struggles to keep up, and doesn't fit the Eclipse's aggressive appearance. The 265-hp, 3.8-liter V-6 that comes in GT models brings a completely different personality, with its ample torque making the 2010 Mitsubishi Eclipse feel at times like a front-wheel-drive muscle car. The four-cylinder cars offer a five-speed manual or four-speed automatic, while the V-6 coupes come with a choice of a slick-shifting six-speed manual or a five-speed automatic. Fuel economy for the four-cylinder model ranges up to 20 mpg city, 28 highway, but the V-6 rates at just 16/25 mpg with automatic in the Spyder.
The 2010 Mitsubishi Eclipse is based on the Galant sedan, so it doesn't handle with much finesse or brake with the same verve as true sports car rivals; that's the only truly disappointing aspect of the Eclipse if you can get past the tight cabin and slightly overstyled exterior. On the upside, the Eclipse exhibits excellent ride quality.
Stability control is now standard on the Mitsubishi Eclipse for 2010; also included are anti-lock disc brakes, side impact airbags, and side-curtain bags (except on the Spyder). Although the federal government hasn't crash-tested the Eclipse, the model receives top "good" ratings for frontal and side impact protection.
For 2010, a Bluetooth hands-free calling interface and rearview camera system are offered on the GS Sport and GT models; the GS Sport is the pick for those who want the fuel efficiency of the four-cylinder engine but are pulled in by the features on the V-6. A Rockford-Fosgate 650-watt audio system is available as part of the optional Sun & Sound Package on the GS or GT models. Other top options include heated leather seats and automatic climate control.
The Bottom Line: The 2010 Mitsubishi Eclipse isn't particularly agile, but still offers head-turning styling with strong straight-line performance.
Other Choices
If you like the 2010 Mitsubishi Eclipse, also consider:
- Honda Accord Coupe
- Hyundai Genesis Coupe
- Ford Mustang
- Chevrolet Camaro
Reason Why:
With its silky V-6 engine and responsive handling, the Honda Accord Coupe feels like it's worth its higher price. The new Hyundai Genesis coupe has a rear-wheel-drive layout and more of a performance focus, with powerful V-6 and turbo four-cylinder engines. And for those looking for a different sort of style, the base V-6 versions of the Ford Mustang and Chevrolet Camaro both bring crisp retro styling; the Mustang is available as a convertible.
Buying Tip
The Spyder is the more enjoyable of the two body styles; get it with the V-6 and the great-sounding Rockford Fosgate audio system and the 2010 Mitsubishi Eclipse feels like a more expensive vehicle.
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2009 Mitsubishi Eclipse
TheCarConnection.com's editors have driven the coupe and Spyder variants of the Mitsubishi Eclipse in order to give you an expert opinion here in this Bottom Line. TheCarConnection.com has also researched road tests on the Eclipse to produce this conclusive review and to help you get the most information about how it compares to rivals.
Likes
A stylish convertible for cheap
Impressive V-6 power
Comprehensive warranty
Dislikes
Handling could be sharper
Cramped interior
Coupe looks overstyled
The Mitsubishi Eclipse isn't the nimblest two-door on the planet, but the V-6 versions and the Spyder convertible are engaging to drive.
The 2009 Mitsubishi Eclipse receives restyled front and rear bumper fascias. GT models also gain a new large rear spoiler, high-intensity discharge (HID) headlights, and a new dual-exhaust system boosting horsepower from 263 to 265.
The Eclipse is less distinctive than the Ford Mustang and not as pretty as the well-balanced Honda Accord Coupe--its styling is a busy mix of straight lines and morphed, melted curves. Inside, the plain-faced dash is made with good-quality materials that are fitted together well. The front seats are supportive, but the interior is intimate and many drivers might find headroom tight in the coupe; the rear seats are uncomfortable for adults.
A 2.4-liter, four-cylinder engine rated at 162 horsepower powers the Eclipse GS model, while the sporty GT packs a 265-hp, 3.8-liter V-6. The SE is available with either engine. The four-cylinder cars offer a five-speed manual or four-speed automatic, while the V-6 coupes come with a choice of a six-speed manual or a five-speed automatic. The convertible Eclipse Spyder is available in similar GS and GT versions. Fuel economy ranges from 20 mpg city, 28 highway with the four-cylinder coupe to 16/25 mpg with the V-6, automatic-equipped Spyder.
Because the Eclipse is a big, heavy two-door, the four-cylinder works hard to keep up, while the V-6 is a big, torquey engine that isn't eager to rev, but it doesn't need to. Since it's based on the Galant sedan, the front-drive Mitsubishi Eclipse doesn't have the lightest, most entertaining steering or braking, and that's what keeps it from greatness. The ride quality is good, however, and Mitsubishi's manual transmission shifts cleanly.
Stability control is an option on some Eclipse models, but it does offer standard anti-lock disc brakes, as well as side impact and side-curtain airbags (except on the Spyder). The 2009 Mitsubishi Eclipse hasn't been crash-tested by the government, but it gets top "good" ratings for frontal and side impact.
The Rockford-Fosgate 650-watt audio system is part of the optional Sun & Sound Package available for the GS and GT models. A six-month pre-paid subscription to Sirius Satellite Radio comes standard with the package. Heated leather seats, side-view windows, and automatic climate control also are available options.
The Bottom Line: Though the 2009 Mitsubishi Eclipse doesn't have the sharpest reflexes or handling, it offers an appealing mix of style and with the V-6 engine, excellent straight-line performance.
Other Choices
If you like the 2009 Mitsubishi Eclipse, also consider:
- Honda Accord Coupe
- Hyundai Tiburon
- Ford Mustang
Reason Why:
The Honda Accord Coupe is the most attractive front-drive coupe from Honda; its silky V-6 and sharp road manners are worth the premium price tag. The Hyundai Tiburon front-drive coupe gets four- or six-cylinder power and a choice of gearboxes (it's due to be replaced in 2010 with a new rear-drive Genesis coupe). The Ford Mustang has a crisp, heritage-inspired design inside and out. It comes in V-6 and V-8 versions, with manual or automatic transmission choices, and is offered as a convertible.
Buying Tip
The 2009 Mitsubishi Eclipse is best savored in Spyder form. The V-6 engine and the clean, loud Rockford Fosgate audio system add to the experience.
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