Auto Industry Insights and Trends

Two Democratic senators have sent a letter to the Federal Trade Commission (FTC) asking for an investigation into Tesla’s marketing of its Autopilot and Full Self-Driving (FSD) features. 

Sens. Richard Blumenthal of Connecticut and Ed Markey of Massachusetts alleged in Wednesday’s letter that Tesla employs “potentially deceptive and unfair practices” in its advertising of the technologies. 

“We fear that Tesla’s Autopilot and FSD features are not as mature and reliable as the company pitches to the public,” the senators wrote. “Tesla drivers listen to these claims and believe their vehicles are equipped to drive themselves — with potentially deadly consequences.”

Crashes and other incidents 

The lawmakers’ letter comes just a few days after the National Highway Traffic Safety Administration announced the launch of a probe into Tesla’s Autopilot system. 

The agency said it has reason to believe that the automated system has difficulty spotting parked emergency vehicles, particularly at night. In recent months, Tesla’s have crashed into vehicles that had flashing lights, flares, and other features. 

“Most incidents took place after dark and the crash scenes encountered included scene control measures such as first responder vehicle lights, flares, an illuminated arrow board, and road cones,” the NHTSA said. “The involved subject vehicles were all confirmed to have been engaged in either Autopilot or Traffic Aware Cruise Control during the approach to the crashes.”

Not fully autonomous

Tesla has stated that its Autopilot and “Full Self-Driving” systems still require a human driver to be behind the wheel who is ready to take over if necessary. But the senators argued that Tesla’s marketing of the technologies is misaligned with its actual capabilities. 

CEO Elon Musk’s “tepid precautions tucked away on social media are no excuse for misleading drivers and endangering the lives of everyone on the road,” the senators said. 

“Tesla and Mr. Musk’s repeated overstatements of their vehicle’s capabilities — despite clear and frequent warnings — demonstrate a deeply concerning disregard for the safety of those on the road and require real accountability,” they wrote. “Their claims put Tesla drivers — and all of the travelling public — at risk of serious injury or death. 

The lawmakers then called on the FTC to launch a formal investigation into the matter.

“In light of these concerns, we urge you to swiftly open an investigation into Tesla’s repeated and overstated claims about their Autopilot and Full Self-Driving features and take appropriate enforcement action to prevent further injury or death as a result of any Tesla feature.”

Despite predictions of lean sales in July because of a continuing vehicle shortage, several carmakers report their sales last month were just fine.

In fact, Kia America reported a record July, moving more than 70,000 vehicles during the month. Kia also had the best first-half year sales in company history, propelled by strong demand for the K5, Sportage, and Telluride models. 

July sales were up 34% compared to July 2020. Carnival MPV posted its fourth consecutive month-over-month increase, marking the model's highest monthly sales performance since it was introduced.

"Kia continues to build on the momentum from our record-breaking first-half by setting yet another record," said Sean Yoon, CEO of Kia North America and Kia America. "Kia sold more than 74% of our available inventory in July as compared to 34% during the same period last year, a solid reflection of the strong consumer interest in the brand."

Vehicle shortage has reduced sales

It could also be an indication of the vehicle shortage that has plagued dealers and frustrated consumers for more than a year. But the shortage didn’t slow Mazda, which reported its second-best July ever with sales of nearly 33,000 vehicles. The Mazda CX-30 recorded its best July with sales of 5,598.

Kia and Mazda may be outliers. Cox Automotive suggests most automakers will report lower sales, not because of a lack of consumer demand but because they can’t produce enough cars. Cox analysts predict the July sales pace to fall to 15.2 million, down from June’s 15.4 million.

“Sales pace has really been falling throughout the month – and quickly,” said Charlie Chesbrough, senior economist at Cox Automotive. “The estimated sales pace of 15.2 million in July is the slowest pace since last August’s 15.1 million, and if inventory levels do not improve, we could see the pace drop even more.”

Automakers have not been able to catch up to demand after shutting down production plants for several weeks last year. A lack of vital computer chips has also halted the production of some models with no prediction of a return to normal.

Challenges for consumers

For consumers, fewer vehicles to meet high demand means finding and buying their next vehicle may be a challenge. For example, it may be hard for buyers to find the exact vehicle they want, in the specific color and trim package they desire. 

Because dealers have so few cars to sell they’re sticking close to the sticker price. In fact, the average transaction price (ATP) for a new vehicle in June was nearly equal to the manufacturer’s suggested retail price. 

“This combination of hard-to-find vehicles and higher prices is slowing the auto market, and there is little change expected over the next few months,” Cox said in its forecast.

Sales of used cars, which have been red-hot for several months, cooled a bit in June, according to the latest report from Cox Automotive.

While sales last month were still strong, they were down considerably from April’s frenetic pace that pushed the price of the average late-model used car to record levels. Jonathan Smoke, chief economist at Cox Automotive, said sales were consistent with June 2019 totals, meaning it was more of a normal month.

“We initially estimate that used-vehicle sales were down 11.1% from the year-ago June, which was up against one of the two strongest months for used sales during the initial reopening phase of the pandemic last year,” Smoke wrote in his Auto Market Weekly Summary. “Compared to 2019, total used-vehicle sales were down 4.7%. The June used SAAR was 39 million, down from 43.6 million last June and down from May 2021’s 40.0 million rate.”

Certified pre-owned (CPO) sales in June slowed similarly to the rest of the retail market. CPO sales declined 9% from a year ago and were down 11% from May. CPO sales are up 18% year-to-date compared to the same period last year. June CPO sales were down 0.7% compared to June 2019.

Better deals may be on the horizon

The good news for people in the market for a used car is that the slowdown in sales may translate into better deals on used car lots. Prices are already coming down at the wholesale level.

The Manheim Used Vehicle Value Index (MUVVI) edged 1.3% lower for the month after setting new records in each of the prior four months. According to the data, retail used vehicle prices will probably reach their peak this month, meaning it might pay to put off a purchase for a month or two.

The index indicated that June’s average price was more than one-third higher than in 2020. Prices held relatively steady across all major market segments, but consumers found the least amount of wiggle room when negotiating for a pickup truck.

Demand for used cars has been exceptionally strong in 2021 because of the computer chip shortage affecting the auto industry. Manufacturers have not produced as many new cars as in years past, so demand has been exceptionally heavy for used cars.

Prices have followed closely behind rising demand. At the beginning of May, the average price for a used car or truck was a record $22,568.

New car shoppers are encountering the same problem faced by people trying to buy homes -- declining selection and rising prices.

As a result, Cox Automotive reports that new car sales are slowing after a near-record sales pace in April. Sales were down slightly in May, and company analysts expect a lower but stronger number for June when all the data is in.

Sales volume in June is expected to be up 24% over last year, but it’s lower than the monthly gains seen earlier this spring. Sales volume is expected to decline by nearly 200,000 units from May, a drop driven in part by one less selling day and no big holiday weekends to drive more sales.

“While new-vehicle sales volume in the first half of 2021 is healthy—and on par with the first half of 2019—the market could be stronger if not for the lack of available supply,” said Charlie Chesbrough, senior economist, Cox Automotive. “Concern about the supply situation really cannot be overstated as we are in untested territory for the market.”

The industry has yet to recover from the pandemic. Factories shut down early in the pandemic, and that left the industry with limited inventory to start 2021. Since then, supply chain disruptions have made the issue worse.

A business model from the past

The lack of new vehicles has caused some dealers to change their business model in the post-pandemic world. Instead of consumers roaming a lot filled with vehicles and choosing one to their liking, they are putting in their orders for future delivery, much the way dealers operated decades ago.

Ford has employed this system for two new trucks that have not yet begun production. Dealers are taking orders for the all-electric Ford F150 Lightning and the compact hybrid pickup, the Ford Maverick.

The Maverick will begin deliveries to customers in the fall, and the Lightning is expected to be available in the spring of 2022. Ford said it logged 36,000 Maverick orders the first few days after it began taking them.

Prices are going up

The shortage of cars and trucks means consumers are paying more. Before the pandemic, buyers usually negotiated a price lower than the manufacturers suggested retail price (MSRP) on the window sticker. These days, consumers are paying the sticker price -- and sometimes more.

J.D. Power reports that the combination of strong retail volumes and higher prices mean that consumers are on track to spend $45.6 billion on new vehicles this month, the highest on record for the month of June. Consumer spending to purchase a new car or truck is expected to reach a record $149.7 billion for the second quarter, in part because dealers are getting more than the MSRP on more vehicles.

The Wall Street Journal cites the case of one consumer who offered a Florida Kia dealer $3,000 over the MSRP for a Kia Telluride. The offer was rejected because the dealer wanted $10,000 over the sticker price.

Automotive experts say that situation is more common in the case of popular, in-demand vehicles. They say consumers would be better off waiting if they have their heart set on one of these models, or settle for a less-popular vehicle.

New research shows that Americans are driving their cars and trucks longer before replacing them, which is increasing the need for careful and regular maintenance.

A report from IHS Markit shows that the average age of light vehicles in operation (VIO) in the U.S. has risen to 12.1 years. That’s about two months longer than during the pandemic in 2020.

The report states that COVID-19 has played a major role in this trend. New cars are in short supply because of the shortage of computer chips, one effect of the pandemic. At the same time, prices of used cars have surged. Those two factors may have combined to persuade consumers to put off replacing their current vehicle.

“2020 was a radical departure from the norm and challenged assumptions about how vehicle owners use their vehicles and accumulate miles; from a vehicle fleet perspective, one of the real surprises was the number of vehicles that suddenly exited the active population,” said Todd Campau, associate director of Aftermarket Solutions at IHS Markit. 

More new cars coming soon

According to the company’s analysis, the rate and mix of vehicles no longer on the road raises the possibility that the number may be inflated by other factors. 

It was more difficult to register vehicles last year because many state offices were closed or limited hours. There’s also some evidence that some vehicles were put into storage due to COVID-19 restrictions in many locations and work-from-home initiatives.

The report’s authors don’t expect this trend to continue. Consumers have recently shown new enthusiasm for auto purchases, but sales have mostly been limited by a shortage of inventory. The team says this year will see a return of new vehicle registrations and increased activity in used registrations as the country gets back to normal.

Regular maintenance

In the meantime, consumers driving older vehicles should be mindful of maintenance needs. Regular oil changes -- at either 3,000 or 5,000 miles -- will provide an opportunity for a service tech to monitor your vehicle’s vital signs. Check your owner’s manual to determine when oil changes should occur.

It’s also important to monitor tire wear. Rotating the tires every 10,000 miles or so can prolong tire life. Performing a regular visual inspection is also a good idea to look for excessive wear that could pose a safety hazard.

Lyft has decided it’s going to play things safe going forward. The rideshare company is getting out of the self-driving business altogether and is selling its autonomous division -- Level 5 -- to Woven Planet, a subsidiary of Toyota Motor Corporation. The deal will net the company around a half-billion dollars. 

The company will still keep a toe in the self-driving water. Under the buy-sell agreement, Lyft and Woven Planet will continue to work together on the development and safety of automated driving technology.

“Today’s announcement launches Lyft into the next phase of an incredible journey to bring our mission to life,” Lyft Co-Founder and CEO Logan Green said. “Lyft has spent nine years building a transportation network that is uniquely capable of scaling AVs. This partnership between Woven Planet and Lyft represents a major step forward for autonomous vehicle technology.”

Toyota is the perfect landing spot for Level 5. As of November 2020, Toyota owned 521 autonomous driving patents in the U.S. -- the most of any automaker. 

Even the best-laid plans don’t always work

When Lyft announced its self-driving project in 2017, everyone in the self-driving world was wearing rose-colored glasses -- especially Lyft President John Zimmer. He predicted that a majority of Lyft rides would be done in self-driving vehicles by 2021.

That prophecy never happened, but it can’t be said that Lyft didn’t give self-driving cars a shot. It acquired an augmented reality start-up to help improve its chances, partnered with Google’s Waymo to offer rides in self-driving minivans, and even hired a former associate administrator of vehicle safety research at the U.S. Department of Transportation to help gain some ground.

Is there anyone left in the self-driving game?

With both Uber and Lyft out of the self-driving game, the viable spread of the technology is shrinking fast. Other than the small taxi service that Waymo has in Phoenix, there are no major companies chasing the idea of transporting passengers without a driver at the moment.

However, that could all change. Zoox, a robotaxi start-up that’s trying its hand at things like a self-driving pizza delivery service, was acquired by Amazon for more than $1 billion in late 2020. When the acquisition was announced, Zoox CEO Aicha Evans said Amazon’s purchase would allow the company to have an even greater opportunity to realize a fully autonomous future.

How old is the car you drive? If you’re like most Americans, it’s probably close to 12 years old, according to new research from vehicle registration tracking firm IHS Markit. The study also revealed that 1 in every 4 vehicles are at least 16 years old. Both are new all-time highs.

Of the many auto-buying trends the coronavirus pandemic is shaking out, one is average vehicle age. As COVID-19 was forcing consumers to weigh out their cyclical goods expenditures, the prices of vehicles were going the other way, forcing consumers to look for longer-term financing or hold onto their cars and trucks longer.

“At the start of 2020, all signs were pointing to moderate growth of the average age of vehicles through the first half of the decade, and there was certainly growing pessimism about how long the strong economic fundamentals could last,” said Todd Campau, associate director of Aftermarket Solutions at IHS Markit. 

“However, the COVID-19 pandemic has created the perfect storm to accelerate U.S. light vehicle average age in coming years. This should be a positive side effect for the aftermarket, as the majority of repairs for older vehicles come through the aftermarket channel” such as auto service/repair and extended warranties.

The low demand factor

A beleaguered U.S. economy and rising unemployment are both factors that have influenced the increase in average vehicle age, and it’s only likely to rise at a faster rate in the near future due to the pandemic. 

The simple truth is that there are fewer people who need to drive to work in a job market that has increasingly transitioned to a work-from-home model. That means consumers are putting fewer miles on their vehicles, which will allow many cars and trucks to last longer. 

In normal times, consumers who might have been good candidates for a new vehicle are now driving their old one until things clear up or opting to purchase a preowned or used vehicle. Some businesses have been able to read the tea leaves to get into a position to profit from that trend.

“We went out and bought a lot of preowned (cars) and said if customers can’t get new, this demand is so strong they will switch to preowned,” AutoNation CEO Mike Jackson told CNBC’s “Squawk Box.” “That is exactly what happened.”

New car sales are expected to hit a record in April, but not in a good way. In fact, the Cox Automotive forecast calls for a record drop in sales due to the coronavirus (COVID-19) pandemic.

Because of shutdowns across the country, Cox Automotive believes new light-vehicle sales volume will fall to near 620,000 units, down 53 percent compared to last April and down 37 percent when compared to March, when the economy began to shut down in the middle of the month.

At an annual rate, April’s sales would result in sales of 7.5 million, significantly lower than last month's 11.4 million and far below last April's 16.5 million level.

To find an auto sales month as bad as this one, Cox Automotive says you have to go back to January 2009, when the financial crisis three months earlier had turned an ordinary recession into the Great Recession. Then, total car sales for the month fell to 655,000.

Silver lining?

As bad as the numbers appear to be, Charlie Chesbrough, senior economist at Cox Automotive, says there may be a silver lining.

"April is likely to be the sales bottom for the vehicle market during this crisis,” he said. “Recent sales data suggests demand is starting to recover modestly after the initial shock in March and early April. Year-over-year daily declines, while still high, are consistently showing improvement over recent weeks. Some people want to buy a vehicle or need to buy a vehicle, even in a pandemic."

It also helps that car dealers have quickly adjusted to the new environment, taking orders online and delivering vehicles to customers’ homes. Some have even provided solo test drives. A significant segment of the market -- largely millennials -- prefer that form of car buying and have helped companies like Carvana quickly develop a niche.

Geography matters

Cox Automotive also notes that the sales decline has been uneven, with sales falling most in markets hard-hit by the coronavirus. Policy responses from state and local officials also vary, with many states on lockdown for weeks and dealerships closed in large portions of the country. Sales are down everywhere, but some markets are more negatively impacted than others.

The big sales decline suggests consumers in need of a new car may find dealers more willing to bargain, although they may not be overloaded with inventory. Most auto plants shut down last month, so they have not been contributing to a mounting inventory of cars and trucks.

Detroit automakers this week have made plans to resume production by May 18 after consultation with Michigan’s governor and the United Auto Workers union.

Automotive publisher Edmunds has selected what it says are the seven best vehicles in 2019, using a variety of criteria. Honda was the only carmaker to place two of its vehicles on the list.

The Honda Accord took first place in the sedan category. Sedan sales have slipped in favor of SUVs in recent years, but the Edmunds editors say the Accord is reason enough to give the category a second look. The Accord prevailed on the strength of comfort, convenience, practicality, and driving pleasure.

The 2019 Mercedes Benz A Class was the winner in the luxury sedan category. Edmunds says it offers quality, comfort, technology, and flair to justify that luxury sticker price.

The Hyundai Kona Electric was rated the best electric vehicle. It edged out Tesla because the editors looked for an EV that was both affordable and provided a generous driving range between charges.

According to Edmunds, the most popular sector of the market is also the most competitive. The Honda CRV emerged as the winner, credited for its comfort, convenience, and performance. Edmunds provided this video to explain why the CRV was its top choice.

Luxury SUV

The 2019 Lincoln Navigator claimed the title of best luxury SUV. Its massive size can make it challenging for city driving, but that’s countered by the vehicle’s huge amount of storage space. It also scores points for comfort, quality, and capability.

The 2019 Mazda Miata claims the title of best sports car for 2019. Edmunds says it’s “great to drive, stylish, and makes an emotional connection.”

In the truck category, the Dodge Ram 1500 claimed the top spot in a very competitive category. The Edmunds editors call it a reliable, capable workhorse with the comfort, technology, and convenience of a family car.

"Our editorial team tests more than 300 vehicles a year ― that's more than a collective 17,000 hours behind the wheel," said Alistair Weaver, editor-in-chief at Edmunds. "We're going beyond what's hot and new to showcase the best of the best from all the cars on sale today.”

The list also has a vehicle for every budget. The Navigator starts at $73,000, but you can drive off in an Accord for around $24,000.

Consumers who own three year-old vehicles are happier with their cars than ever before, according to the J.D. Power and Associates Vehicle Dependability Study.

Consumers who purchased a new vehicle in 2015 and are still driving them gave their rides high marks, with overall dependability rising by nine percent, the first increase since 2013.

The study is a gauge of automotive quality, measuring 177 specific potential problems grouped into eight major categories. Ratings are based on the number of reported problems per 100 vehicles.

"For the most part, automotive manufacturers continue to meet consumers' vehicle dependability expectations," said Dave Sargent, Vice President, Global Automotive at J.D. Power. "A nine percent improvement is extremely impressive, and vehicle dependability is, without question, at its best level ever."

Where problems are most likely to occur

Consumers reported the most problems with their vehicles' infotainment systems. These sophisticated features continue to generate the largest number of complaints. In particular, voice command features and Bluetooth connectivity create the most trouble.

Another notable trend is the improved quality of mass market brands, which continue to catch up to luxury nameplates in terms of quality. Lexus and Porche ranked number one and two in the dependability rankings, but GM's Buick was right behind.

Buick led the field among mass market brands with a score of 116, just 17 points behind Lexus. Fiat was the most improved brand, while Infinity made the biggest one-year move by going from 29th place to fourth.

Other brands showing sharp improvements include Kia, Nissan, Ford, and Dodge. In particular, the Kia Rio was the leader in the small car category. Greg Silvestri, head of service operations at Kia, said the ranking shows the company's recent investments have paid off.

"The Rio is yet another example of how far the entire Kia model line-up has progressed, and this kind of quality is tangible evidence of our long-term strategy to enhance the Kia ownership experience," Silvestri said.

Segment award winners

Toyota, meanwhile, drove off with six of the 19 segment awards -- mostly among the Lexus nameplate. Winners include the Lexus CT, Lexus ES, Lexus GS, Lexus RX, Toyota Prius and Toyota Tacoma.

The Dodge Challenger, Ford Super Duty, Ford Expedition, Honda Odyssey, Hyundai Tucson, Mercedes-Benz GLK-Class, and Audi Q3 also were singled out for segment awards. For the Q3, it was notable since 2015 was its introductory year.

The results may be reassuring for consumers buying either a new or used car. For new car buyers, the evidence suggests their vehicle won't give them much trouble in the first three years.

For used car buyers, selecting a three year-old model not only comes at a lower price than a new car, it might be just as reliable.

Buying a car or truck that holds its value will pay off when it comes time to trade it in.

Among the crop of 2018 models, Kelley Blue Book (KBB) finds Toyota and Porsche take top honors with the highest average projected resale value among their full model lineups.

Eric Ibara, director of residual values for Kelley Blue Book, says this is the second straight year Porsche has won out in luxury competition and Toyota has claimed the top spot in the brand category.

"The key to high residual values is to produce a vehicle that has strong consumer appeal and ensure that the vehicle is not over-produced," he told ConsumerAffairs. "These are traits that Toyota does exceedingly well."

Here's the list of vehicles with the highest resale value, by category:

• COMPACT CAR: Subaru Impreza
• COMPACT SUV/CROSSOVER: Jeep Wrangler
• ELECTRIC VEHICLE: Chevrolet Bolt EV
• ENTRY-LEVEL LUXURY CAR: Lexus RC
• FULL-SIZE CAR: Toyota Avalon
• FULL-SIZE PICKUP TRUCK: Chevrolet Silverado HD
• FULL-SIZE SUV/CROSSOVER: Chevrolet Tahoe
• HIGH-END LUXURY CAR: Porsche Panamera
• HIGH PERFORMANCE CAR: Porsche 911
• HYBRID/ALTERNATIVE ENERGY CAR: Toyota Avalon Hybrid
• LUXURY CAR: Lexus GS
• LUXURY COMPACT SUV/CROSSOVER: Porsche Macan
• LUXURY FULL-SIZE SUV/CROSSOVER: Lexus LX
• LUXURY MID-SIZE SUV/CROSSOVER: Lexus RX
• MID-SIZE CAR: Honda Accord
• MID-SIZE PICKUP TRUCK: Toyota Tacoma
• MID-SIZE SUV/CROSSOVER: Jeep Wrangler Unlimited
• MINIVAN: Honda Odyssey
• SPORTS CAR: Porsche 718 Cayman
• SPORTY COMPACT CAR: Subaru WRX
• SUBCOMPACT CAR: Honda Fit
• SUBCOMPACT SUV/CROSSOVER: Honda HR-V

Top categories for resale value

Ibara says some categories of vehicles hold their values better than others. In fact, he says one category stands out this year.

"Mid-size trucks, which carry the highest segment average among all vehicle segments, are projected to hold an average of over 50 percent of their value after five years," Ibara said. "In contrast, a number of car segments, including subcompact cars, electric vehicles, luxury cars, and high-end luxury cars, have segment average residual values of less than half of what mid-size trucks retain."

This is not only important when you purchase a car, but also when you lease. Lease payments are based on the difference between the vehicle's purchase price and its residual value at the end of the lease.

The more a vehicle holds its value, the smaller that difference tends to be, and in most cases, the lease will carry a lower monthly payment.

At the same time, Ibara points out that popularity with consumers has a lot to do with a vehicle's high resale value. So in many cases, consumers may pay a premium for these vehicles when they negotiate a purchase or lease.

New car sales appear headed for a seven percent year-over-year decline this month, according to an analysis by Kelley Blue Book (KBB).

December, with its end-of-the-year promotions, is usually the biggest month for car sales, as it was this year, but this month is finishing significantly below December 2016. If those projections hold, KBB expects 2017 new car sales to finish two percent below last year's level.

That’s good news for consumers because it gives them additional bargaining power when negotiating the purchase of a new car or truck. However, Matt DeLorenzo, KBB's managing editor, says consumers should focus on makes and models that have been left on the lot instead of the most popular cars.

“There are bargains to be had, particularly in the midsize sedan segment, as buyers move more toward crossover SUVs to meet their family car needs,” DeLorenzo told ConsumerAffairs.

“Consequently, you will find good deals on cars ranging from full-size sedans like the Chevrolet Impala, Buick LaCrosse, Chrysler 300 and Ford Taurus, as well as many midsize models including Chevy Malibu, Hyundai Sonata, Kia Optima and Ford Fusion.”

Settling for less than your dream car

Getting a great deal might mean settling for something less than your dream car, but DeLorenzo says consumers willing to make that compromise can find cash back deals as high as $6,000 on less-loved models, particularly if they are 2017s.

“But remember that you are buying a year old car, so the resale value will be less than if you had purchased a 2018 model,” he said.

Consumers who have their heart set on a crossover can still find deals in that category, especially if they are willing to make a compromise or two. DeLorenzo says the Jeep Cherokee has what he calls “a polarizing design,” which has dampened sales.

But if you happen to like the design, you can get the car you want with discounts as high as $4,000 on a 2018 model and $5,000 on a 2017.

“A new Cherokee with a more conventional front end look is slated to bow at the Detroit show, so if you don’t mind having the old look, you can save a considerable amount of money,” DeLorenzo said.

Deals on the Ford Expedition

The same applies for the Ford Expedition, a full-size SUV. Ford has just redesigned that model, but if you can find the previous generation still in stock, DeLorenzo says you can negotiate a discount of up to $8,500.

“The year-end fight in the pickup truck market is producing some discounts, particularly as Chevy battles RAM for second place to the Ford F Series,” DeLorenzo said. “You can find discounts of as much as $11,000 on Silverado and $13,000 on select 2017 RAM 1550 pickups.”

As always, consumers will make the most of these opportunities if they take advantage of online resources to price compare and remain flexible in their choices.

Whether you’re a strategic car shopper or just check sales once in a while for good deals, now through December is the time to look for discounts on brands and models with lagging sales.

That's why it may pay to take a look at what Fiat Chrysler and Hyundai-Kia have to offer between now and the end of the year. Both brands had a lackluster October, according to Kelley Blue Book (KBB).

KBB's preliminary numbers show Fiat-Chrysler will finish the month with an 11.1 percent year-over-year decline in sales, despite strong demand for its popular Jeep product. Hyundai-Kia is expected to be down 11.2 percent.

Nissan's sales are expected to be off by 4.9 percent while Honda sales appear to be nearly flat, down less than one percent.
Strong month for Volkswagen.

All other automakers are expected to see their sales for the month rise, led by Volkswagen, which appears to be recovering from 2015's diesel emissions cheating scandal. KBB puts VW's October sales at an 11.7% gain, increasing its U.S. marketshare by a half a percentage point.

Toyota sales are expected to be 6.3 percent higher while Ford sales appear to have risen nearly four percent.

While consumers in search of the best deal often find satisfaction by going for a slow-selling brand, the Houston area serves as a major caveat to that theory. Just about all dealers in Southeast Texas are reporting strong sales, due to Hurricane Harvey.

Strong sales in Houston

Thousands of consumers are replacing their flooded vehicles, and KBB analyst Tim Fisher says those sales were enough to move the needle nationally, keeping a slight decline in auto sales from being worse. In other parts of the country, he's already seeing signs of increased incentives to attract consumers to new car showrooms.

“Even with production cuts this year, incentives are on the rise and have reached 11 percent of average transaction prices,” Fisher said. “This is an indicator that new-vehicle demand is still contracting, and production cuts could be on the horizon to prevent oversupplies."

Sometimes it’s the type of vehicle that can influence whether or not you’ll find a flexible dealer. In you have your heart set on a small SUV, the dealer might not have much wiggle room, since this segment remains red hot. Small SUV sales are up 10 percent from last October and make up 18 percent of the market, according to KBB.

Instead, consumers might find more attractive deals on midsize sedans, a category that has lost market share for five straight years.

By focusing on unloved brands and categories, consumers can take advantage of attractive financing and cash-back incentives, as well as more money on trade-ins.

After the final accounting, KBB expects October overall new car sales to be down two percent from last October, but off nearly 12 percent from September.

If you are in the market for a 2017 model vehicle, it might be helpful to know how much you can get for it when it's time to sell.

Thinking of leasing instead of buying? Vehicles that hold their value will generally have the best lease terms, since your monthly payment is based on the difference in value from the time you drive it off the lot until you turn it back in.

Each year Kelley Blue Book (KBB) analyzes the current crop of new vehicles and estimates which ones will best hold their value. This year, Toyota claimed the honors as Best Resale Value Brand, a title it last held in 2014. Putting it over the top were four 2017 models that hold tightly to their values.

Porsche, meanwhile, was a first time winner of Best Resale Value Luxury Brand on the strength of three of its models. General Motors was right up there, along with Honda and Subaru.

"Toyota and Porsche notably capture the top brand and luxury brand awards, delivering incredible resale value across their lineup of vehicles," said Eric Ibara, director of residual values for Kelley Blue Book.

Trucks and SUVs do best

Ibara says it comes as no surprise that most of the Top 10 Best Resale Value vehicles on the list this year are trucks and SUVs. These segments will only get stronger in the future, he predicts.

The resale values are set by automotive analysts who review the output from statistical models built around millions of transactions. The analysts single out vehicles bringing the highest five-year residual values, as a percentage of their original Manufacturer's Suggested Retail Price (MSRP).

This year the top 10 resale values for individual models go to:

• Chevrolet Colorado
• Chevrolet Silverado
• CMG Canyon
• GMC Sierra
• Honda Ridgeline
• Jeep Wrangler
• Subaru WRX
• Toyota 4Runner
• Toyota Tacoma
• Toyota Tundra

Toyota's strong portfolio

In pushing Toyota to the top of the 2017 heap, the Tacoma claimed honors in the mid-size truck category, the Sienna was tops among minivans and the 4Runner held its value best among mid-size SUVs.

The Honda Fit took the honors among subcompacts, while the Subaru Impreza holds its value best among compacts.

The KBB editors advise consumers that the resale value is just as important as the sticker price when choosing a new car. But while the price is on the sticker in plain view, the residual value is not.

Another thing to keep in mind -- most options and packages, which will always bump up the price of a new car, do not necessarily increase its resale value. Ibara says exceptions include a high-performance engine or a performance package in a sports car.

Regional factors also come into play. In the icy upper Midwest, four-wheel drive vehicles will probably hold their value better than two-wheel drive vehicles. In the deep south, dark-colored cars -- which tend to retain heat -- won't bring the resale value of light-colored ones.

In the past, General Motors (GM) rarely advertised its Buick brand, a car long considered “Cadillac-lite” and most likely to be driven by someone in their 60s. It was affordable luxury, sandwiched between Cadillac and the now defunct Oldsmobile.

But in case you haven't noticed, GM has flooded the airwaves in recent months with commercials for its line of redesigned Buick cars. And these ads are not aimed at seniors – they're aimed at Millennials.

Why? Because marketers have figured out that Millennials aren't content to wait until they've “made it” before they treat themselves to some luxury. They want it now, and if carmakers can deliver a luxury model at an entry level price, they're likely to buy it.

Entry level luxury

The Buick Enclave starts at around $39,000 but the Buick Encore, the model getting the heaviest promotion, starts at just $24,000. The ad campaign is built around the idea that most consumers can't recognize a Buick now because they're so, well, cool.

Buick isn't the only luxury name going after Millennial dollars.

"Lower-price-point vehicles such as the Mercedes CLA, BMW 1-series and Audi A3 are making luxury cars more attainable for Millennials earlier in life, which could help these brands establish long-term consideration and loyalty," said Rick Wainschel, a vice-president at Autotrader.com.

The thought being that once someone in their late 20s starts driving a BMW, they're likely to stick with the brand – in a more expensive model – as they become more prosperous in their 30s and 40s.

Teaching their parents

And while younger generations have usually turned to their parents for advice when it comes to their first car, a study from Edmunds.com suggests Millennials by and large believe they could teach their parents a thing or 2 about car-buying. This generation considers itself to be more tech-savvy and better educated than their parents about the car shopping process.

In fact, 73% of Millennials said they are savvier car buyers than their parents and more than half said they freely advise family and friends on what cars they should buy. And because this generation tends to do its homework, Edmunds CEO Avi Steinlauf says the older generation would do well to listen.

"Millennials today are informed car buyers," Steinlauf said. “They're making the most out of the volume of information available at their fingertips, and it's helping them to make a smarter car purchase. And since a smart car buyer is a quality car buyer, it all points to an optimistic and healthy future for the auto industry."

Used cars are popular

Though carmakers are making a concerted effort to sell Millennials on an entry level luxury car, plenty of young consumers are opting for a used car instead. In fact, a slightly higher percentage of Millennials bought a used car last year than did adults over age 35, according to the Edmunds research.

An earlier study by AutoTrader found that Millennials are image-conscious and aspirational in their preferences but that, as they age, they're likely to become more practical in their automotive tastes.

And while they may be strongly tempted by the BMW or Audi nameplate, Millennials are also more open to buying a car from less well-known brands than other car shoppers. The study found that young shoppers are more likely to consider buying a Kia or Mazda because of the popularity of import brands throughout their lives.

Consumers are routinely bilked of hundreds and sometimes thousands of dollars apiece by fraudulent auto sales representatives, according to a new report by Public Citizen, the consumer organization founded by Ralph Nader.

The report, Rip-Off Nation: Auto Dealers' Swindling of America, outlines the way auto dealerships allegedly rip off customers and is supported by documents obtained by auto sales industry whistleblower Duane Overholt, who worked in Florida auto sales for 20 years.

Industrywide practices range from inflating the cost of warranties and reporting one set of numbers to the customers and another set to the bank, to stuffing the contract with extras that the customer never agreed to pay for, the report said. The size of the purchase, the flurry of paperwork and the complicated financial deals make consumers particularly vulnerable to the schemes developed by dealerships to squeeze the highest possible profit from each sale.

The National Automobile Dealers Association said it was unfair of Public Citizen to take a few isolated incidents and smear the entire industry.

"What Public Citizen has reported on is a number of extreme cases of fraud and deception," said NADA chairman Alan Starling. "To suggest that this is part of some kind of national conspiracy is absurd. Auto retailing is made up of 20,000 independent business men and women who employ more than 1.2 million people nationwide, handling more than 40 million new and used car transactions every year."

"The majority of new car dealers are family businesses that have been an important part of their local communities for decades. Repeat business is the cornerstone of their operation. To indict an entire industry is a great disservice to the overwhelming majority of auto dealers who treat each of their customers in an honest and open manner," Starling said.

But Public Citizen said the scams are widespread.

"The scams are not restricted to a few areas or dealerships. Customers are being cheated on both coasts and everywhere in between," said Public Citizen President Joan Claybrook at a press conference. "The tactics used are so sly that informed customers, customers who have done their homework and exhausted every measure to ensure they don't get ripped off, are taken just as easily as anyone else."

"I was not a nice guy," said Overholt, who came clean in 1999. "Back-of-the-envelope calculations show that I ripped off consumers for about $33 million over my career - and that's a conservative estimate. While you're working in the auto sales business, you get the feeling that you are invincible. You think you can do anything and get away with it. And you often do."

As outlined in the report, auto buyers are cheated in many ways:

• The dealer boosts the manufacturer's suggested retail price with extras, some of which may already come with the vehicle.
• Sales managers run credit reports on potential buyers without their permission, using the driver's license the customer provides before going for a test drive. With this information, the dealer can learn how much credit the customer has and even what the customer's last car payments were, for use in price negotiations.
• Banks that have good relationships with dealers may insist on a higher interest rate in order to kick back to the dealer the dollar value of a few percentage points of the loan, without the buyer's knowledge.
• Customers are manipulated during the sales process to pay more than the agreed-upon price. This is often done with the use of worksheets listing add-ons, although few of the items are associated with a specific price.
• If the sale is made after hours, customers are asked to sign blank bank forms that the dealer offers to fill in later, ostensibly after talking to a bank during business hours. The numbers reported to the bank may not reflect what the customer agreed to.
• The dealer may add products to the sales contract after the customer leaves. And because customers don't know they paid for a warranty or service contract, for instance, they never make any claims using it.

Victor Lewton, a Public Citizen employee, recently purchased a Toyota Matrix. He thought he was making a savvy purchase until Overholt reviewed his documents and found a number of places where Lewton may have been scammed, including being charged $199 for an "appearance package" that Lewton told the dealer he didn't want.

"Had I been made aware of my options regarding these items, I could have saved between $400 and $600," Lewton said. "Even with all that research, I still spent more money than I should have for options I didn't want."

In addition to calling for state attorney general investigations by letter today, Public Citizen called on state and local law enforcement authorities to enforce consumer protection laws, and on state and federal lawmakers to require that financial and dealership documents be contained in a single file available to the consumer on request.

Public Citizen also called for changes to the law to require disclosure of the interest rates that the lender agrees to provide and disclosure of any kickback to the dealer, to require dealer employees to tell consumers that they represent dealers and not the consumer, and to forbid mandatory arbitration clauses in sales contracts.

Public Citizen has set up a Web site, www.autodealerscam.org, to provide consumers with more information.

Meanwhile, consumers should:

1. Obtain financing independently of the dealer;
2. Refuse to sign any arbitration clause;
3. Never sign blank financial forms;
4. Remember that dealers make money from extras and add-ons; and
5. If financing is unavailable except from the dealership, never drive a car off the lot before all financial transactions have been agreed upon by the lending institution.

"Given the range of cases that have been filed in a variety of states nationwide, it appears that what we now know is only the tip of the iceberg," Claybrook said. "It is imperative that law enforcement authorities take swift action to protect consumers and seek civil redress and criminal convictions before the evidence of wrongdoing is destroyed."