The only significant way the new Ford/Mercury warranty is better than HonYota's is in the roadside assistance. And the new Ford warranty is still waaaay behind Hyundai's, Kia's, and Mitsubishi's warranties: two fewer years of comprehensive coverage, and five fewer years of powertrain coverage.
But it's an improvement. Maybe it will force GM and DC to improve their warranties.
I guess they figured that since they have some competitive vehicles they needed to be competitive in other areas of the sale. It'll be interesting to see what happens with Fusion sales next year now that most of the safety stuff is standard along with an aux jack, other desireable options like navi will be available, the quality seems to be there so far, AWD will be a class exclusive option, and the price is right. All in addition to the new warranty of course.
I purchased a 2006 Sonata LX about 3 weeks ago and wanted to post my cost. Loaded with moonroof and upgraded 6 disc cd changer. Also, white pearl paint which is $200 extra.
MSRP $25,145 according to sticker Cash Price financed BEFORE TTL $22,455 Rebate of $2500 Total: $19,955
True Market Value for car according to Edmunds is $20,739
I feel I got a great deal. I paid less for my 2006 than my friend did buying a 2005.
I used Arrow Hyundai in Milwaukee, Wi. HIGHLY RECOMMENDED!
What do you guys think?
Sorry I meant to post this is the price comparison forum!
At just invoice, your car is worth: $23,065. Subtract the $2,500 rebate and it comes to: $20,565. At your price of $19,955 you bought it $610 less (under invoice). I have read again and again from experts that $500 under invoice is a great deal. You did fine my friend. I just hope when it's my turn I do just as good. :shades:
I wish you the best of luck. I emailed dealerships, but had one I really wanted to go with. So, I took the best email offer to them, and they were more than willing to work with me. BE CAREFUL of getting quotes with dealers saying with REBATES - I was only eligible for one - and one of the dealers had all the possible rebates included in the rebates. Very misleading....
I think that $20,000 for a fully loaded Sonata is just about the best bang for your buck out there, not just among mainstream sedans, but among ALL cars.
$36K+ for a VW Passat? Wow, they are truly in Acura/Lexus/Infinity/Audi/Volvo/Cadillac(!!!) territory here- wonder what they were thinking with prices like that. But then again, the new Buick Lucerne gets up there pretty quickly too. My limit on my new mid-size purchase is about $27K- plenty of luxury with good perfomance and great features for that price. Maybe VW thinks that "German Engineering" is worth an extra $9K?
I think that $20,000 for a fully loaded Sonata is just about the best bang for your buck out there, not just among mainstream sedans, but among ALL cars.
Maybe for you, but most people don't want a Hyundai.
You could also buy the Value Edition which invoice starts at $22,191. If you add all available options to it: 17" Akiros Aolly Wheel Upgrade ($1,449), Rear Side Airbags ($310), Rubber mats, Trunk Liner, and Splashguards ($230) it runs it up to $24,810. Big difference from a top of the line!
I would have definitely considered one except it takes premium. I like the crash test scores and styling but I learned a VW designer lead in making of the Ford Five Hundred. It's huge interior and trunk, design, crash test scores, and takes regular gas! The only con is its HP, only 203@5750 rpm.
The 2006 SE invoice starts at $20,507. Add all options: Leather seats ($779), Power Moonroof ($779), Saftey and Security Package ($692), Traction Control ($170), Destination $700 comes to $23,627! $1,183 less than the Passat Value Edtion.
The Passat Value Edition has a turbo 4 cyl engine that does 200 Hp@5100 rpm. The Five Hundred's engine is a V6, but has a CVT which is said to help get the most out of its power. 0-60 for the Passat 2.0T rated 7.7 and the Five Hundred rated 8.7 by Consumer reports.
The ONLY con? I test drove one for about 30 seconds. That's how long it took to discover it's woeful pickup and zero feel for the front end when I took the first turn in it.
I wanted the 500 to contend for my $, but it bowed out real quick. At least the Fusion had a chance.
I agree that the list prices for the Passats are way too high. However, right now you can get great deals on them which definitely makes them worthy of consideration. I was going to get a new 2007 Sonata, but ended up buying a Passat because of the following deal:
2006 VW Passat 3.6 w/ Sport Package #1 MSRP of $33,615 I paid $25,915 plus TTL and the dealer threw in the all weather floor matts and a VW umbrella for the door.
There is no way that I would pay over 30K for this car but for under 26K I just couldn't say no.
This just happened to me and it was annoying!! I was with my dad coming from walmart and he was on the phone and listening to the sports channel. I turn the volume down and he uses the buttons to turn it up a little at a time to be slick. I noticed and turned the volume down again. So as i'm twisting the knob down, he's holding the button up (talk about multi tasking, he's driving, on the phone, listing to the radio and arguing with me. Did i mention his sprite in the cupholder?)... So i snatched his cell phone and threw it out the window. :shades: Ok he laid it down to put on the blue-tooth ear piece so i there the phone into the back seat. We stopped for gas and switched places. Now he's yacking away on the phone and i turn up the volume to drown him out and change the station. Without ever moving my hand from the wheel.
moral: They are convienent and irritating at the same time :mad:(parents, phones, and audio system)! on the + side, i probably saved him from an accident with the accord he was tailgating. There should be some way to fix talking and driving even it means law enforcement.
btw, he talked from wal-mart to home and that is almost 20miles.
The steering wheel controls are a minor convenience (more valuable to some that others) but not a safety feature.
My Mountaineer has the Steering Wheel mounted Audio and Climate controls. I'm so used to where they are that it's second nature for me to make changes without glancing down. I definitely think it is much safer and incredibly more convenient. I'll don't ever want to buy a car again without it.
2012 Highlander Limited AWD V6 and 2015 Ford Fusion Hybrid SE
i'm with you on this one. it doesn't take long to learn them. pretty soon that will be the only way to adjust all those functions. the center dash controls will become the redundant (obsolete) feature. :surprise:
2024 Ford F-150 STX, 2023 Ford Explorer ST, 91 Mustang GT vert
The really :shades: mid-sized cars are the ones with voice commands. I know the Prius (barely a mid-sized car, at least by EPA standards) has a bevy of voice commands for audio, HVAC, even navigation if so equipped. Any other mid-sized cars have that? Maybe the new Camry, or the Accord?
In Edmund's 'Full Test: 2005 Ford Five Hundred' author Brian Moody called the Five Hundred "better than average." He said, "The Ford Five Hundred is not perfect, but with a starting price of about $23,000 the car is a fine choice for those in need of a competent, feature laden-family sedan. He also mentioned it,"performs well with a sportier than expected attitude."
What I got out of the test is the Five Hundred is a near luxury sedan at a reasonable price. I don't mind comfort at the price of speed. I know it looks like a VW and I don't expect it to perform like one. "I'm not a smart man but I know what Ford is!"(Recognize that line?) Until VW makes a midsize sedan that uses regular gasoline, my next car will either be a Five Hundred or Sonata.
hi i am planning to buy a new midsize sedan. i am interested in the camry and the malibu and the sonata. i havnt done much research. but i am leaning towards the malibu because i am getting a pretty good deal from a local dealer who promised an LS model for around 16k. should i take it or look into its Japanese and Korean counterparts more? thanks. pirate8
The best thing you can do at this point is spend some time reviewing the past postings here. That will give you a great idea of what these folks think.
Then you can look up individual vehicle discussions using the Browse By Vehicle search on the left side of the page and you can go to http://www.edmunds.com and look up the numbers.
The Malibu is one of the cheapest cars in this comparison (if not THE cheapest). It is also made with the lowest quality materials and design. The Camry is a quality car, and also one of the most expensive of the lot. The jury is still out on the Sonata, in my opinion. I prefer the Accord, myself. Read the reviews (from the experts like C&D, CR, MSN Auto, Edmunds, etc...), do some test drives, and decide for yourself which is right for you.
Since the Malibu is a consideration, I assume you are talking a value play. Try the Sonata out and get a quote. You may get a car with a longer warranty, and more standard safety features. My guess is the Malibu, as we know it, is on the way out. While Sonata resale may not be stellar, it can't be worse than the Malibu. Camry is in a different league. I say one for around $20K. At $4K more, is may not be really cheaper, even with resale being higher, but you will be driving what many consider a top line car. The Malibu at $16K is not a terrible buy however, unless it is the four cylinder. In that case, my guess is that a good close-out price is around $14K. I think a Sonata is like $16K to $17K. -Loren
By all means test drive the different cars you are interesed in. Also compare the features and the price you can pay (not the MSRP).
I've got an '05 Sonata (previous generation) and couldn't be more satisfied with the car. I saw a guy I know at the golf course today and asked how he liked his Elantra. He bought it new, a 2001 GLS sedan, has 70,000 miles and says he hasn't had to do anything except regular oil changes and replace the tires after about 45,000 miles. He didn't say, but I'm guessing he had to have done the brakes also. But the thing is, nothing has gone wrong with his car...just routine maintenance.
Test them out and see which one fits your needs best.
The Malibu, even amongst its shortcomings, is still a fairly reliable and pratical car. If it fits your needs for basic transportation, I say go for it.
However, you would really be doing yourself a disservice if you did not test drive and evaluate the Hyundai Sonata. I'm not sure if you can get a V6 GLS (or SE if it's an 07) for 16K, but the car is still worth a valid look.
I think once you drive the Sonata you just may be persuded to get one.
I've been looking around at cars lately and even though I got the offical word on my Altima's fate (it's NOT totaled...they are doing EXACTLY what Backy said they would do) I've been out looking regardless.
The new Sonata is a great car. I'm surprised each time I test drive one. It's not quite the car for me (I like a little more flair in my vehicles) I recommend it to anyone.
As far as the new Camry. It looks a LOT better than the previous model did...but it too bores me to death. Only the SE brings about passion for me (too bad I can't stand the bodykit)
So that leaves me with the Accord EXV6 6spd, another Altima or a Mazda6 S GT.
Again, at least give each car a detailed test drive and see which one you like best. Do EXTENSIVE research on pricing because great deals are available on just about every car in this segment, including the new Camry.
Exactly what Maxamiillion said. He has been doing his homework, and is unbiased. Drive the cars and buy the one that fits your needs, taste, and budget. You won't go far wrong in this segment.
i was leaning toward the sonata, cause i took a test drive and loved it, it was better than the malibu by a milestone, and the fuel economy is pretty good too. but i changed all my intentions and going with jeep wrangler.
is a fine car. Interior is fine also. I see a lot of Malibu sedans and Maxx in my area. Nice to have choice. These people chose the car for some reason right? One you may want to look at is the Impala.. value all around. Consumer Reports.. LOL! Bias mag. Proven right here at Edmunds in a heated forums room over and over..
Go out, test drive its free. Get what you want, in your budget. Don't get pushed into paying extra $$$ for a perceived reliaiblity advantage. Across the board cars in this class are all reliable. Please come back and let us know what you choose..
Ford's generous warranty could boost sales and lift resale values, some analysts say. See full image Warranties at a glance While some warranties may vary within a company, here's a quick look at what warranties automakers are offering. DaimlerChrysler AG Drivetrain: 3 years/36,000 miles Basic: 3 years/36,000 miles Roadside service: 3 years/36,000 miles Ford Motor Co. Drivetrain: From 5 years/60,000 miles to 6 years/70,000 miles Basic: 3 years/36,000 miles to 4 years/50,000 miles Roadside service: Up to 6 years/70,000 miles General Motors Corp. Drivetrain: From 3 years/36,000 miles to 5 years/60,000 miles Basic: 3 years/36,000 miles to 4 years/50,000 miles Roadside service: Up to 4 years/50,000 miles Honda Motor Co. Drivetrain: 5 years/60,000 miles Basic: 3 years/36,000 miles Roadside service: Not offered Nissan Motor Co. Drivetrain: 5 years/60,000 miles Basic: 3 years/36,000 miles Roadside service: 3 years/36,000 miles Toyota Motor Corp. Drivetrain: 5 years/60,000 miles Basic: 3 years/36,000 miles Roadside service: Not offered Source: Edmunds.com
Ford is increasing the warranty on all of its 2007 Ford and Mercury vehicles to five years or 60,000 miles. In addition, Ford will offer free roadside assistance for the entire warranty period. How important are these benefits when you're shopping for a car? Click here to vote
Printer friendly version Comment on this story Send this story to a friend Get Home Delivery Ford Motor Co., struggling to gain traction with its North American turnaround effort, announced a series of moves Thursday aimed at cutting costs and boosting sales.
Ford's Board of Directors voted to cut the company's quarterly dividend in half, from 10 cents to 5 cents a share, beginning in the third quarter. The dividend is now at its lowest point since Ford eliminated payments altogether in 1982 and mirrors a 50 percent dividend reduction at General Motors Corp. in February.
Ford's directors also cut their own $200,000-a-year compensation by half. Chairman and CEO Bill Ford Jr. said the moves were necessary to maintain strong liquidity.
Also Thursday, Ford announced that it is extending the standard powertrain warranty on all Ford and Mercury vehicles from three years or 36,000 miles to five years or 60,000 miles. Lincoln's four-year or 50,000-mile standard powertrain warranty is being extended to six years or 70,000 miles. In addition, Ford said it will offer free roadside assistance for the entire warranty period and allow customers to transfer their warranties if they sell their car or truck before the warranty expires.
That makes Ford's warranty package the most generous of any full-line automaker -- a fact it hopes will bring more customers into Ford dealerships, which have seen retail sales drop 9 percent so far this year.
"The headwinds we faced at the beginning of 2006 have only become stronger, as consistently higher gasoline prices in the U.S. have caused consumer purchase preferences to shift away from SUVs and large trucks to smaller cars and crossover vehicles," Bill Ford said in a statement issued after Thursday's board meeting. "While this shift plays positively to our new vehicle offerings, we must still get our costs in line in response to segment adjustments and higher commodity prices that are affecting the company."
But Wall Street said the decision to cut dividends signals bad news ahead as Ford prepares to release its second-quarter financial results next week.
"This certainly suggests that second-quarter earnings are going to be uglier than expected," said Bradley Rubin, vice president of credit research at BNP Paribas in New York. "People are finally realizing at Ford that this turnaround is a little more difficult than they anticipated."
Ford shares closed down 32 cents Thursday to $6.56, a 4.6 percent decline.
"The dividend cut telegraphs the board's mounting concern about the company's performance," said John Casesa of New York's Casesa Shapiro Group LLC. "It's a very pessimistic signal."
The dividend cut is expected to save Ford about $375 million annually.
"Strong liquidity is an important enabler of our ongoing turnaround efforts and this action will make an important contribution," Bill Ford said.
But credit analysts said the move will not change the company's balance sheet enough to boost Ford's weak credit ratings, which have already fallen into junk-bond territory.
"The cash savings are relatively marginal," said Robert Schulz, who follows the company for Standard & Poor's in New York.
Craig Hutson, an analyst with Gimme Credit, said he expects Ford's ratings to sink even deeper.
"It is a sign that the company is acting to shore up its liquidity amid greater headwinds in the industry than it originally anticipated," he said. "A dividend cut is never good news."
But Ford's decision to extend warranties may be good news, at least for consumers.
The five-year or 60,000-mile powertrain warranty being offered on Ford and Mercury cars and trucks is substantially better than the three-year or 36,000-mile warranty offered on all of DaimlerChrysler AG's domestic nameplates and most of General Motors Corp.'s brands. More importantly, it matches the warranties offered by Ford's leading Japanese rivals: Toyota Motor Corp. and Honda Motor Co., neither of which includes roadside assistance as part of their standard packages.
"Ford is setting its own path," said Cisco Codina, head of North American marketing, sales and service for Ford. "All of this is part of our strategy to become America's car company."
The new warranties, which are effective today, will be applied retroactively to customers who have already purchased 2007 cars and trucks. Moreover, the company said it will offer extended warranties to customers who buy 2006 models. The new warranties apply to all Ford, Mercury and Lincoln vehicles, except for those like Ford's diesel pickups and hybrid SUVs that already featured more attractive terms.
"It definitely gives consumers another reason to look at Ford," said Mike Jackson, an analyst with CSM Worldwide in Farmington Hills.
Boosting warranties addresses one of Ford's biggest product problems -- the resale value of its vehicles. However, the move could increase the company's warranty costs substantially.
Ford's second quarter warranty data shows that 2006 model year per-unit warranty costs are 24 percent less than those for 2005 model vehicles.
"I'm glad that we're leading instead of following," said Kenny Shreve, owner of Kenny Shreve Ford Mercury in McLeansboro, Ill.
"I feel better about Ford today than I have in years."
Yeah, that makes a lot of sense. Keep away from a car with an "8.9." Just ignore the fact that its the 2nd highest rated sedan by Consumer Reports--better than Malibu by over 15 points, even in 4 cyl form, better than Sonata, etc.
Honestly---let me give my owner review of my Camry so I can raise the average score. That's just about the least reliable way to evaluate cars as possible.
I think the other posters had it right, other than characterizing the '07 Camry as boring--its more "exciting" than everything but Accord and the V6 Altima in this segment. Not that boring is neccessarily bad. My Intrigue was exciting. Nothing more exciting than driving down a highway at 70 mph in the middle lane and losing all power and power steering! Yeehaw!
malibu is a fine car. Interior is fine also. I see a lot of Malibu sedans and Maxx in my area. Nice to have choice. These people chose the car for some reason right?
yeah, it was price, price, price.
did you notice the poster thought the sonata was better than the malibu by a milestone in the test drives? yet the poster was still considering the malibu - could it be because of price and not so much the merits of the car?
Consumer Reports.. LOL! Bias mag. Proven right here at Edmunds in a heated forums room over and over...
don't you know, you were on the wrong side of all those arguments i won?
Who's gonna say 'yea - I bought a problem car and I'm stuck with
I guess that means we shouldn't ever participate in forums, and shouldn't ever take anyone's experience or advice about cars, right?
In all seriousness, I think you are a little off base on that one. People will definitely sound off when they are not happy with something about their car. If you don't believe it, just visit the Camry problems forum.
yet the poster was still considering the malibu - could it be because of price and not so much the merits of the car?
Or could it be that the Malibu serves his needs and would be satisfied with the features, at a lower price than other cars? Price is certainly a big factor for many, but price for the overall package (value or bang for the buck) is what is important to most intelligent buyers.
If someone buys Brand A, is that going to impress someone? And if it does, so what?
Many Sonata owners, myself included, chose the Sonata based upon what they got for the price paid.
As for CR, I don't know that anything was proven. I have disliked CR for 30 years or so (long before Honda & Toyota became players in the market) because at the time I felt they were quite biased. I don't dwell on it...I just ignore their solicitations to join and do not subscribe. It's OK for those who like CR. I just choose to ignore anything they have to say.
Saying someone bought a Malibu based mainly on price, doesn't sound good coming from someone who bought a Sonata for the exact same reason.
CR is the least bias mag. there is. When the other mags get mega bucks from Chevrolet, for advertising, they are less likely to give them a low rating in their tests. CR accepts no advertising $$$. Why would CR be bias? Because you disagree with them.
Comments
But it's an improvement. Maybe it will force GM and DC to improve their warranties.
I guess they figured that since they have some competitive vehicles they needed to be competitive in other areas of the sale. It'll be interesting to see what happens with Fusion sales next year now that most of the safety stuff is standard along with an aux jack, other desireable options like navi will be available, the quality seems to be there so far, AWD will be a class exclusive option, and the price is right. All in addition to the new warranty of course.
MSRP $25,145 according to sticker
Cash Price financed BEFORE TTL $22,455
Rebate of $2500
Total: $19,955
True Market Value for car according to Edmunds is $20,739
I feel I got a great deal. I paid less for my 2006 than my friend did buying a 2005.
I used Arrow Hyundai in Milwaukee, Wi. HIGHLY RECOMMENDED!
What do you guys think?
Sorry I meant to post this is the price comparison forum!
I LOVE THIS CAR!!!!
I think that $20,000 for a fully loaded Sonata is just about the best bang for your buck out there, not just among mainstream sedans, but among ALL cars.
Maybe for you, but most people don't want a Hyundai.
I don't have a Hyundai, btw, but that doesn't stop me from recognizing that a loaded Sonata is one of the best values out there.
I would have definitely considered one except it takes premium. I like the crash test scores and styling but I learned a VW designer lead in making of the Ford Five Hundred. It's huge interior and trunk, design, crash test scores, and takes regular gas! The only con is its HP, only 203@5750 rpm.
The 2006 SE invoice starts at $20,507. Add all options: Leather seats ($779), Power Moonroof ($779), Saftey and Security Package ($692), Traction Control ($170), Destination $700 comes to $23,627! $1,183 less than the Passat Value Edtion.
The Passat Value Edition has a turbo 4 cyl engine that does 200 Hp@5100 rpm. The Five Hundred's engine is a V6, but has a CVT which is said to help get the most out of its power. 0-60 for the Passat 2.0T rated 7.7 and the Five Hundred rated 8.7 by Consumer reports.
The ONLY con? I test drove one for about 30 seconds. That's how long it took to discover it's woeful pickup and zero feel for the front end when I took the first turn in it.
I wanted the 500 to contend for my $, but it bowed out real quick. At least the Fusion had a chance.
2006 VW Passat 3.6 w/ Sport Package #1
MSRP of $33,615
I paid $25,915 plus TTL and the dealer threw in the all weather floor matts and a VW umbrella for the door.
There is no way that I would pay over 30K for this car but for under 26K I just couldn't say no.
moral: They are convienent and irritating at the same time :mad:(parents, phones, and audio system)! on the + side, i probably saved him from an accident with the accord he was tailgating. There should be some way to fix talking and driving even it means law enforcement.
btw, he talked from wal-mart to home and that is almost 20miles.
My Mountaineer has the Steering Wheel mounted Audio and Climate controls. I'm so used to where they are that it's second nature for me to make changes without glancing down. I definitely think it is much safer and incredibly more convenient. I'll don't ever want to buy a car again without it.
All of sudden the 500 is a different animal with harder tires? Don't think so.
But there I go being a wild man taking my eyes off the road for 1 second. I like to live on the edge.
What I got out of the test is the Five Hundred is a near luxury sedan at a reasonable price. I don't mind comfort at the price of speed. I know it looks like a VW and I don't expect it to perform like one. "I'm not a smart man but I know what Ford is!"(Recognize that line?) Until VW makes a midsize sedan that uses regular gasoline, my next car will either be a Five Hundred or Sonata.
Some people catch on slowly. They will eventually!
http://autos.msn.com/advice/article.aspx?contentid=2879
thanks. pirate8
Then you can look up individual vehicle discussions using the Browse By Vehicle search on the left side of the page and you can go to http://www.edmunds.com and look up the numbers.
Good luck!!
-Loren
I've got an '05 Sonata (previous generation) and couldn't be more satisfied with the car. I saw a guy I know at the golf course today and asked how he liked his Elantra. He bought it new, a 2001 GLS sedan, has 70,000 miles and says he hasn't had to do anything except regular oil changes and replace the tires after about 45,000 miles. He didn't say, but I'm guessing he had to have done the brakes also. But the thing is, nothing has gone wrong with his car...just routine maintenance.
The Malibu, even amongst its shortcomings, is still a fairly reliable and pratical car. If it fits your needs for basic transportation, I say go for it.
However, you would really be doing yourself a disservice if you did not test drive and evaluate the Hyundai Sonata. I'm not sure if you can get a V6 GLS (or SE if it's an 07) for 16K, but the car is still worth a valid look.
I think once you drive the Sonata you just may be persuded to get one.
I've been looking around at cars lately and even though I got the offical word on my Altima's fate (it's NOT totaled...they are doing EXACTLY what Backy said they would do) I've been out looking regardless.
The new Sonata is a great car. I'm surprised each time I test drive one. It's not quite the car for me (I like a little more flair in my vehicles) I recommend it to anyone.
As far as the new Camry. It looks a LOT better than the previous model did...but it too bores me to death. Only the SE brings about passion for me (too bad I can't stand the bodykit)
So that leaves me with the Accord EXV6 6spd, another Altima or a Mazda6 S GT.
Again, at least give each car a detailed test drive and see which one you like best. Do EXTENSIVE research on pricing because great deals are available on just about every car in this segment, including the new Camry.
Good luck!
Consumer Reports gave the 2006 Chevy Malibu "Worse than Average" score for reliability.
IIHS scored the Malibu a Silver rating with optional curtain airbags. Poor rating without.
Consumer Reports.. LOL! Bias mag. Proven right here at Edmunds in a heated forums room over and over..
Go out, test drive its free. Get what you want, in your budget. Don't get pushed into paying extra $$$ for a perceived reliaiblity advantage. Across the board cars in this class are all reliable. Please come back and let us know what you choose..
Bryce G. Hoffman / The Detroit News
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Ford Motor Co.
Ford's generous warranty could boost sales and lift resale values, some analysts say. See full image
Warranties at a glance
While some warranties may vary within a company, here's a quick look at what warranties automakers are offering.
DaimlerChrysler AG
Drivetrain: 3 years/36,000 miles
Basic: 3 years/36,000 miles
Roadside service: 3 years/36,000 miles
Ford Motor Co.
Drivetrain: From 5 years/60,000 miles to 6 years/70,000 miles
Basic: 3 years/36,000 miles to 4 years/50,000 miles
Roadside service: Up to 6 years/70,000 miles
General Motors Corp.
Drivetrain: From 3 years/36,000 miles to 5 years/60,000 miles
Basic: 3 years/36,000 miles to 4 years/50,000 miles
Roadside service: Up to 4 years/50,000 miles
Honda Motor Co.
Drivetrain: 5 years/60,000 miles
Basic: 3 years/36,000 miles
Roadside service: Not offered
Nissan Motor Co.
Drivetrain: 5 years/60,000 miles
Basic: 3 years/36,000 miles
Roadside service: 3 years/36,000 miles
Toyota Motor Corp.
Drivetrain: 5 years/60,000 miles
Basic: 3 years/36,000 miles
Roadside service: Not offered
Source: Edmunds.com
Ford is increasing the warranty on all of its 2007 Ford and Mercury vehicles to five years or 60,000 miles. In addition, Ford will offer free roadside assistance for the entire warranty period. How important are these benefits when you're shopping for a car?
Click here to vote
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Comment on this story
Send this story to a friend
Get Home Delivery
Ford Motor Co., struggling to gain traction with its North American turnaround effort, announced a series of moves Thursday aimed at cutting costs and boosting sales.
Ford's Board of Directors voted to cut the company's quarterly dividend in half, from 10 cents to 5 cents a share, beginning in the third quarter. The dividend is now at its lowest point since Ford eliminated payments altogether in 1982 and mirrors a 50 percent dividend reduction at General Motors Corp. in February.
Ford's directors also cut their own $200,000-a-year compensation by half. Chairman and CEO Bill Ford Jr. said the moves were necessary to maintain strong liquidity.
Also Thursday, Ford announced that it is extending the standard powertrain warranty on all Ford and Mercury vehicles from three years or 36,000 miles to five years or 60,000 miles. Lincoln's four-year or 50,000-mile standard powertrain warranty is being extended to six years or 70,000 miles. In addition, Ford said it will offer free roadside assistance for the entire warranty period and allow customers to transfer their warranties if they sell their car or truck before the warranty expires.
That makes Ford's warranty package the most generous of any full-line automaker -- a fact it hopes will bring more customers into Ford dealerships, which have seen retail sales drop 9 percent so far this year.
"The headwinds we faced at the beginning of 2006 have only become stronger, as consistently higher gasoline prices in the U.S. have caused consumer purchase preferences to shift away from SUVs and large trucks to smaller cars and crossover vehicles," Bill Ford said in a statement issued after Thursday's board meeting. "While this shift plays positively to our new vehicle offerings, we must still get our costs in line in response to segment adjustments and higher commodity prices that are affecting the company."
But Wall Street said the decision to cut dividends signals bad news ahead as Ford prepares to release its second-quarter financial results next week.
"This certainly suggests that second-quarter earnings are going to be uglier than expected," said Bradley Rubin, vice president of credit research at BNP Paribas in New York. "People are finally realizing at Ford that this turnaround is a little more difficult than they anticipated."
Ford shares closed down 32 cents Thursday to $6.56, a 4.6 percent decline.
"The dividend cut telegraphs the board's mounting concern about the company's performance," said John Casesa of New York's Casesa Shapiro Group LLC. "It's a very pessimistic signal."
The dividend cut is expected to save Ford about $375 million annually.
"Strong liquidity is an important enabler of our ongoing turnaround efforts and this action will make an important contribution," Bill Ford said.
But credit analysts said the move will not change the company's balance sheet enough to boost Ford's weak credit ratings, which have already fallen into junk-bond territory.
"The cash savings are relatively marginal," said Robert Schulz, who follows the company for Standard & Poor's in New York.
Craig Hutson, an analyst with Gimme Credit, said he expects Ford's ratings to sink even deeper.
"It is a sign that the company is acting to shore up its liquidity amid greater headwinds in the industry than it originally anticipated," he said. "A dividend cut is never good news."
But Ford's decision to extend warranties may be good news, at least for consumers.
The five-year or 60,000-mile powertrain warranty being offered on Ford and Mercury cars and trucks is substantially better than the three-year or 36,000-mile warranty offered on all of DaimlerChrysler AG's domestic nameplates and most of General Motors Corp.'s brands. More importantly, it matches the warranties offered by Ford's leading Japanese rivals: Toyota Motor Corp. and Honda Motor Co., neither of which includes roadside assistance as part of their standard packages.
"Ford is setting its own path," said Cisco Codina, head of North American marketing, sales and service for Ford. "All of this is part of our strategy to become America's car company."
The new warranties, which are effective today, will be applied retroactively to customers who have already purchased 2007 cars and trucks. Moreover, the company said it will offer extended warranties to customers who buy 2006 models. The new warranties apply to all Ford, Mercury and Lincoln vehicles, except for those like Ford's diesel pickups and hybrid SUVs that already featured more attractive terms.
"It definitely gives consumers another reason to look at Ford," said Mike Jackson, an analyst with CSM Worldwide in Farmington Hills.
Boosting warranties addresses one of Ford's biggest product problems -- the resale value of its vehicles. However, the move could increase the company's warranty costs substantially.
Ford's second quarter warranty data shows that 2006 model year per-unit warranty costs are 24 percent less than those for 2005 model vehicles.
"I'm glad that we're leading instead of following," said Kenny Shreve, owner of Kenny Shreve Ford Mercury in McLeansboro, Ill.
"I feel better about Ford today than I have in years."
That is not correct. If I recall, Camry, Accord, Sonata finished in the top three (midsize) - I don't recall the order, however.
Actually, the other poster is going for a Wrangler, if I am reading it correctly. Good luck in your searches and experience.
Seriously?
Yeah, that makes a lot of sense. Keep away from a car with an "8.9." Just ignore the fact that its the 2nd highest rated sedan by Consumer Reports--better than Malibu by over 15 points, even in 4 cyl form, better than Sonata, etc.
Honestly---let me give my owner review of my Camry so I can raise the average score. That's just about the least reliable way to evaluate cars as possible.
I think the other posters had it right, other than characterizing the '07 Camry as boring--its more "exciting" than everything but Accord and the V6 Altima in this segment. Not that boring is neccessarily bad. My Intrigue was exciting. Nothing more exciting than driving down a highway at 70 mph in the middle lane and losing all power and power steering! Yeehaw!
2006 Accord 9.4
2006 Sonata 9.4
2007 Camry 8.7
yeah, it was price, price, price.
did you notice the poster thought the sonata was better than the malibu by a milestone in the test drives? yet the poster was still considering the malibu - could it be because of price and not so much the merits of the car?
Consumer Reports.. LOL! Bias mag. Proven right here at Edmunds in a heated forums room over and over...
don't you know, you were on the wrong side of all those arguments i won?
I guess that means we shouldn't ever participate in forums, and shouldn't ever take anyone's experience or advice about cars, right?
In all seriousness, I think you are a little off base on that one. People will definitely sound off when they are not happy with something about their car. If you don't believe it, just visit the Camry problems forum.
Or could it be that the Malibu serves his needs and would be satisfied with the features, at a lower price than other cars? Price is certainly a big factor for many, but price for the overall package (value or bang for the buck) is what is important to most intelligent buyers.
If someone buys Brand A, is that going to impress someone? And if it does, so what?
Many Sonata owners, myself included, chose the Sonata based upon what they got for the price paid.
As for CR, I don't know that anything was proven. I have disliked CR for 30 years or so (long before Honda & Toyota became players in the market) because at the time I felt they were quite biased. I don't dwell on it...I just ignore their solicitations to join and do not subscribe. It's OK for those who like CR. I just choose to ignore anything they have to say.
CR is the least bias mag. there is. When the other mags get mega bucks from Chevrolet, for advertising, they are less likely to give them a low rating in their tests. CR accepts no advertising $$$. Why would CR be bias? Because you disagree with them.