The Toyota Lexus had 120 problems per 100 vehicles compared to the industry average of 206 problems.

Lexus once again stands alone atop a closely watched list of vehicle dependability after Buick slipped from the No. 1 spot it shared with the Japanese luxury brand last year. It’s the 14th straight year Toyota Motor Corp.’s high-end brand has held the highest ranking in the annual study, which measures problems experienced by the original owners of vehicles after three years. Lexus had 120 problems per 100 vehicles, down from 145 last year.

Ford Motor Co.’s Mercury brand ranked second, followed by General Motors Corp.’s Cadillac. Toyota was fourth, and Honda Motor Co.’s Acura luxury brand was fifth.

Question: here’s the car I am looking at

Year: 2007
Make: Lexus RX 350
Model: 2WD, AUTO
Trim: Premium Package
Mileage: 20000
VIN:
Buying or Selling? - Buying from Private Party
ZIP: 30303

thanks for your help!

Queen of the Road: Hello there! Let’s see what we’ve got for you…

For a 2007 Lexus RX350 2WD with 20,000 miles,  prices range from $27,600 (being in above average condition) to $25,300 (being in average condition) and $23,000 (being in below average condition). Keep in mind that the numbers above are the wholesale prices. A dealership will usually aim to sell it for +12%-14% more than wholesale, so their estimated retail prices could range from $25.3k to $30.2k. With a private party, a 5%-10% mark up from wholesale is fair.

If you, or any of your friends, have any further questions, don’t hesitate to ask us anything. If you’re certain that you’re going to purchase it, do a carfax and bring a trusted mechanic for a quick inspection. Goodluck and keep us posted!

With gasoline prices hitting record highs almost daily, you might be wondering if you can get away with filling up your expensive car with regular instead of the expensive premium gas your manufacturer recommends. The answer: Regular’s fine in most cases, but it’s best to check your owner’s manual.

There are three basic provisos for gasoline usage in owner’s manuals: when only regular gas is required, when premium is “recommended” and when premium gas is “required.” Only in the third instance will deviating from the manufacturer’s requirements potentially harm your car.

If premium gas is required, those cars are designed to run only on premium and could possibly be damaged if you use regular over a prolonged period. Cars that require premium gas are typically made by luxury brands like BMW, Mercedes, Lexus, VW and Audi, and some Acuras are also on that list.

Another effective way to save on gas is to drive like your grandmother. That means gentle acceleration, gradual braking and avoiding hard stops. Accelerating too quickly can mean you have to brake harder and that can waste gas.

Question From Joy: I’m intereseted in any of the following:
Toyota RAV4 Base
Tuscon Hyundai SE
Subaru Forester (base)
Subaru Legacy w/esc
Honda CR-V

Yes, all 2008.
Yes AWD
4C preferred when available for improved gas mileage
ESC is electronic stability control — a must for us. It can be called dynamic stability control.
The musts include electronic stability control, curtain and front airbags and fog lights. Extras that add to the costs are not desired. The car is for my recent college graduate daughter who is moving to upstate NY and will be traveling back to PA frequently. Safety is BIG, fuel economy 2nd in importance and last is avoiding spending more than we must. Some dealers offer college discounts, I understand. We are open to other car suggestions.Thanks for your help.

Queen of the Road: Hi Joy. Just to get the ball rolling, I researched each car to find our best deals so that you can get an idea of the how large a discount you can obtain from MSRPs. What style of the Honda CR-V and Subaru Legacy are you looking for?

For a 2008 Toyota RAV4 4dr SUV 4WD (2.4L 4cyl 4A),

The Largest Percentage Off MSRP Price: $20,843.00
MSRP: $24,234.00
ePrice: $20,843.00
Savings: $3,391.00
% OFF MSRP: 13.99%
This deal was rated a Thumbs Up.

For a 2008 Hyundai Tucson SE 4dr SUV 4WD
(2.7L 6cyl 4A),

The Largest Percentage Off MSRP Price: $20,001.00
MSRP: $23,960.00
ePrice: $20,001.00
Savings: $3,959.00
% OFF MSRP: 16.52%
Another Thumbs Up deal.

Financial Incentive$: A Cash Back Incentive of $1,000-$1,500 is being offered to the Consumer upon purchase. Offer Expires: 7/31/2008

For a 2008 Subaru Forester 2.5 X L.L.Bean Edition 4dr Wagon AWD (2.5L 4cyl 4A),

The Largest Percentage Off MSRP Price: $24,998.00
MSRP: $27,340.00
ePrice: $24,998.00
Savings: $2,342.00
% OFF MSRP: 8.57%

What are all these blue links for? The first blue link breaks down the numbers so that you don’t have to do any math or researching. You’ll see exactly how much money you’re saving if you pay the “Internet Price”. It also lists the National Average Discount, the National Maximum Discount and the National Average Price for each vehicle. We also provide our personal opinion to whether we think the deal is good or not.

If we approve the deal, we’ll show a thumbs up and “Bring Your Checkbook“.

If we think the deal is ok, we’ll show a thumb tilted sideways and “Fair Market“.

If we disapprove the deal, we’ll show a thumbs down and “Keep Shopping“.

The second blue link is the proof you’ll need when you step foot onto the dealership. Don’t leave home without it! It’s the page that shows the price which you’ll be asking for. It’s basically what you need to pull up on their computers if they don’t believe you found that price online form that dealer’s inventory.

So now what? Print out all the blue links above and take them to your local dealerships. But before you go, we highly recommend you call and make an appointment to see the Internet Fleet Manager because he/she should know exactly what you’re talking about. Avoid the floor salesmen, head straight to the Internet Sales Manager.

If they don’t believe your prices, ask to use one of their computers so they can see where these figures came from. It’ll be impossible for them to doubt you because you’re pulling up a dealership’s website and checking their inventory. Remember, cars are a commodity so these prices apply everywhere in the U.S. This car in New York should cost the same in Las Vegas. The taxes vary by state. Keep us posted with how everything goes.

Question From Prashanta: Bought a new RAV 4 Base 2 WD with third row seats with the following accessories (this was the only car on the lot and hardly any could be found with a third row seat anywhere in the SE U.S.) 2008, 4 cyl Base with 2 WD

Item Invoice MSRP
Car $19888 $21500
Roof rails $176 $220
Running light $32 $40
third row $760 $950
Fuel surcharge $27 $34
Toyoguard $159 $619
AM/FM 6 disc $150 $200
Mats $208 $259
Alloy wheels $448 $560

Total $21848 $24382

I estimated the dealer\\\\\\\’s cost as $21848- 2% holdback (in Florida, it is 2% of invoice)- 1% wholesale reserve (1% of MSRP)= $21096

My estimate was that Dealer\\\\\\\’s cost + delivery charge ($735 + TDA (at this dealer, was $700, which included setup of car) + 3-5% profit (of $21096)= reasonable price

for 3% profit- good price was $23163 +TTL

for 4% profit- $23371 +TTL
for 5% profit- $23586+TTL

I paid $22450 +TTL, for a vehicle very difficult to find. Do my calculations make sense? How was the price I got?

Car Finance Guru: Hi Prashanta.

By comparing MSRP, here’s what we’ve got in store….
For a 2008 Toyota RAV4 4dr SUV (2.4L 4cyl 4A),

MSRP: $24,344.00
ePrice: $22,784.00
Savings: $1,560.00
% OFF MSRP: 6.41%

Let’s take a look at the most imporant numbers here. The MSRP was $24,383 and you paid $22,450. That is a dollar discount of $1,933 or percentage discount of 7.92%. We’ll tell you right now that it is going to be nearly impossible to calculate the true cost of the vehicle for the dealerships because you have to add in many variables. Depending on how much volume the dealer pushes affects many of the incentives Toyota grants to the dealer.

However, from another perspective we are fortunate to have a family member working as an executive at Lexus/Toyota. Usually in our experience the employee discount on Toyotas are about 5%-7% under invoice. We’ve heard from dealerships that when people buy through these progams the dealer really makes zero.

Here are some more figures to chew on. If you look at the major publicly traded auto dealerships like AutoNation, Lithia, Penske, etc the average gross profit margin on new vehicles is around 8%. That is GROSS not NET, so contrary to popular belief there is not a lot of room for profit on new cars.

In your situation the price you paid $22,450 I would assume that the dealer’s gross profit is probably around the 4%-5% area. Is that a good deal? We think so and if you are satisifed with the way you were treated at that particular dealership be sure to service your car with them. Most people don’t know that service, parts, and finance make up over 60% of a dealerships gross profit.

!Congratulations on your new Rav4!

Hybrids have a well-founded reputation for being sluggish, but some are downright powerful. For drivers who want a hybrid vehicle that balances power with fuel efficiency, the fastest hybrids are worth considering. The five-passenger Lexus GS 450h (which tops Forbes’s ranking of the most powerful hybrids available) is as quick as the much smaller and lighter Porsche 911.

The latest gas-friendly vehicles to hit the market

If you’re feeling the pinch at the pump and you’re in the market for a new vehicle, check out these hybrid alternatives from Chevy to Toyota. J.D. Power & Associates reported fuel efficiency numbers for the most popular vehicles in the hybrid market:

Toyota Prius Hybrid

With an estimated 48 mpg city / 45 mpg highway, the Prius remains the most popular midsized pick for 2008.

Honda Civic Hybrid - 40 mpg city / 45 mpg highway

Chevrolet Malibu Hybrid - 24 mpg city / 32 mpg highway

Nissan Altima Hybrid

This hybrid boasts the same Toyota system capable of 35 mpg city / 33 mpg highway.

Saturn Aura Hybrid - 24 mpg city / 32 mpg highway

Toyota Camry Hybrid - 33 mpg city / 34 mpg highway

Lexus GS 450h

If you’re still looking for performance, style and luxury then take a look at the Lexus GS 450h. Even with a powerful V8 under the hood you can still attain 22 mpg city / 25 mpg highway.

Lexus LS 600h L - 20 mpg city / 22 mpg highway

Lexus RX 400h - 27 mpg city / 24 mpg highway

Mercury Mariner Hybrid - 34 mpg city / 30 mpg highway

Mazda Tribute Hybrid - 34 mpg city / 30 mpg highway

Saturn Vue Hybrid - 25 mpg city / 32 mpg highway

Toyota Highlander Hybrid - 27 mpg city / 25 mpg highway

Chevrolet Tahoe Hybrid - 21 mpg city / 22 mpg highway

GMC Yukon Hybrid - 21 mpg city / 22 mpg highway

Question From Nick: what is the best deal for a small fuel efficient automatic suv ?New or used ? around $16.000

CarFinanceGuru: Hi Nick.  We found this great article on Hybridsuv.com and it lists all of the small and medium sized SUVs by miles per gallon (MPG).  One of our colleagues here, MuscleCarGuy did a great cost benefit analysis of Hybrid versus non-Hybrid (http://autobragblog.com/index.php/2008/01/31/question-for-autobrag-your-opinion-please-3/)

It is a great read and we agree with his assessment that if you want to help lower pollution then hybrids are the way to go.  If you are looking at this from a “return on investment” stand point then a hybrid might not be such a great idea right now.

Make and Model   Average MPG   Class

Ford Escape Hybrid   32 mpg   Small
Mazda Tribute Hybrid   32 mpg   Small
Mercury Mariner Hybrid   30 mpg   Small
Lexus RX Hybrid   26 mpg   Mid-Sized
Saturn Vue Hybrid   26 mpg   Small
Toyota Highlander Hybrid   26 mpg   Mid-Sized
Toyota Rav4 (4 cyl)   23 mpg   Small
Jeep Compass   22 mpg   Small
Nissan Rogue   22 mpg   Small
Suburu Forester 2.5X   22 mpg   Small
Toyota Rav4 (6 cyl)   22 mpg   Small
Chevrolet Tahoe Hybrid   21 mpg   Large
GMC Yukon Hybrid   21 mpg   Large
Honda CRV   21 mpg   Small
Honda Element   21 mpg   Small
Jeep Patriot   20 mpg   Small
Suburu Forester Sports   20 mpg   Small
BMW X3   19 mpg   Mid-Sized
Ford Escape (V6)   19 mpg   Small
Land Rover LR2   19 mpg   Small
Lexus RX   19 mpg   Mid-Sized
Mazda Tribute (V6)   19 mpg   Small
Mercury Mariner (V6)   19 mpg   Small
Mitsubishi Outlander   19 mpg   Small
Acura RDX   18 mpg   Mid-Sized
Chevrolet Equinox   18 mpg   Small
Hyundai Santa Fe   18 mpg   Mid-Sized
Hyundai Tucson   18 mpg   Small
Infiniti FX   18 mpg   Mid-Sized
Kia Sportage   18 mpg   Small
Mazda CX-7   18 mpg   Mid-Sized
Pontiac Torrent   18 mpg   Small
Suzuki Grand Vitara   18 mpg   Small
Toyota Highlander (V6)   18 mpg   Mid-Sized
Acura MDX   17 mpg   Mid-Sized
BMW X5   17 mpg   Mid-Sized
Honda Pilot   17 mpg   Mid-Sized
Hyundai Veracruz   17 mpg   Mid-Sized
Kia Sorento   17 mpg   Small
Nissan Xterra   17 mpg   Small
Saturn Vue (V6)   17 mpg   Small
Suzuki XL-7   17 mpg   Small
Toyota FJ Cruiser   17 mpg   Small
Cadillac SRX (V6)   16 mpg   Mid-Sized
Chrysler Pacifica   16 mpg   Mid-Sized
Dodge Nitro   16 mpg   Small
Ford Edge   16 mpg   Mid-Sized
Ford Taurus X   16 mpg   Mid-Sized
GMC Acadia   16 mpg   Large
Jeep Liberty   16 mpg   Small
Lincoln MKX   16 mpg   Mid-Sized
Mazda CX-9   16 mpg   Mid-Sized
Mercedes Benz M Class   16 mpg   Mid-Sized
Mitsubishi Endeavor   16 mpg   Mid-Sized
Saturn Outlook   16 mpg   Mid-Sized
Suburu Tribeca   16 mpg   Mid-Sized
Toyota 4Runner   16 mpg   Mid-Sized
Volvo XC90   16 mpg   Mid-Sized
Audi Q7   15 mpg   Mid-Sized
Buick Enclave   15 mpg   Large
Chevrolet Trailblazer   15 mpg   Mid-Sized
Ford Explorer (V6)   15 mpg   Mid-Sized
GMC Envoy   15 mpg   Mid-Sized
Jeep Grand Cherokee   15 mpg   Mid-Sized
Jeep Wrangler   15 mpg   Small
Lexus GX   15 mpg   Mid-Sized
Mercedes Benz GL Class   15 mpg   Large
Mercury Mountaineer (V6)   15 mpg   Mid-Sized
Nissan Pathfinder   15 mpg   Mid-Sized
Chevrolet Suburban   14 mpg   Large
Chevrolet Tahoe   14 mpg   Large
Ford Explorer (V8)   14 mpg   Mid-Sized
GMC Yukon XL   14 mpg   Large
Hummer H3   14 mpg   Mid-Sized
Mercury Mountaineer (V8)   14 mpg   Mid-Sized
Cadillac Escalade   13 mpg   Large
Chrysler Aspen   13 mpg   Large
Dodge Durango   13 mpg   Large
Ford Expedition   13 mpg   Large
Jeep Commander   13 mpg   Mid-Sized
Land Rover LR3   13 mpg   Mid-Sized
Nissan Armada   13 mpg   Large

If you were to go with a new model I’d have to say the the top three choices would be:

1) Nissan Rogue
2) Toyota Rav 4 (4 cylinder)
3) Honda CRV

If you were to go with a used model my top three would be:

1) Subaru Forester
2) Jeep Compass
3) Jeep Patriot

This may seem all odd that all the new models were not picked as a choice for used.  The reason is because the Subaru and the Jeeps drop in value like rocks once they are used.  You can get a much better deal going with those more unloved cars.  The Top 3 New hold up pretty well versus the Top 3 used.

Take a look at the info I have provided and let me know what SUVs you are really interested in.  I’ll get you pricing info right away.

Question From Trafalski:   I wold like to buy a new lexus is 250
 

MuscleCarGuy:   Hi Trafalski. Unfortunately, there are currently no Lexus’s on our system. If you have any other cars that you might be interested in, please let us know.

Question From John:  How much should I pay for these two.

2008 Avalon limited with 10K miles purchased from Avis by dealer who will certify car.

How much should I pay for a 2005 Lexus LS430 with 30K certified. Of the two, which is better car.

Queen of the Road: Hi, John. Welcome to our blog! Unfortunately, there aren’t very many 2008 Toyota Avalons  that have been through the wholesale market since they’re quite new.   However, I can tell you that from our experience cars from rental companies are discounted more heavily than average.  The premise being that people who rent these cars end up driving them really hard (cough cough….not us of course). 

In regards to a 2005 Lexus LS430 with 30,000 miles, prices range from $29,200 (being in above average condition) to $26,700 (being in average condition) and $24,100 (being in below average condition).  Keep in mind that the numbers above are the wholesale prices. A dealership will usually aim to sell it for +12%-14% more than wholesale, so their estimated retail prices could range from $26,400 to $32,000.

We’ve actually purchased an LS430 for a business friend of ours from the wholesale market.  Its been a year and so far he still has nothing but nice things to say about it.  As you probably know Lexus and Toyota vehicles share many of the same components.  At the end of the day it comes down to whether you want a newer Toyota Avalon with less mileage or an older Lexus with higher mileage.  With both prices being about the same I’d say the Lexus would be our pick.  It is a “premium” name and a super comfortable car that is a lot a car for the money.  Also, since the LS460 has been out the Ls430 has been deeply discounted… a great deal is out there. 

If you let us know how much the offer for the 2005 LS430 is and we’ll tell you if it’s a great deal.