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DETROIT BUSINESS MAIN 10-23-06 B 1 CDB.Qxd DETROIT BUSINESS MAIN 10-23-06 B 1 CDB 10/18/2006 4:02 PM Page 1 FALL 2006-WINTER 2007 Testing out new choices Hybrids, diesel and flex fuel: What’s good for what? Powertrain pros and cons BY KEVIN A. WILSON When measured by these CRAIN NEWS SERVICE differing priorities, or some HYBRID mix of two or all three, the ew-car shoppers Pluses alternatives are not equal. ■ with an eye on cur- Depending on your driving Before you decide that habits (city miles are better), N rent events or a de- you’re ready for a hybrid, can get upward of 50 mpg. sire to align their buying diesel, flex-fuel or even the ■ Lower emissions. decisions with personal rare electric car, consider convictions have a growing the high-mileage options Minuses number of alternatives to using the traditional inter- ■ Higher prices than BOUT THIS ISSUE the traditional gasoline-fu- nal-combustion approach. comparable traditional A eled car or truck. Not long The top of the EPA mileage gasoline-powered vehicles. Executive Wheels is all ago, it was just “gas or hy- charts (www.fuelecono- ■ Long-term repair costs still about getting around in brid,” but other alterna- my.gov) includes a dozen unclear. style — whether in luxury tives are proliferating. How small cars that get better Lexus 450H cars, sports cars, SUVs or do you know which is right than 30 mpg in the com- other wheeled for you? contraptions. bined rating. If your inter- DIESEL Start by asking yourself est is saving money and you The stories and profiles which of the three primary can live with the likes of a Pluses were written by the motivations for seeking al- ■ Better mileage than experts at Crain’s sister Toyota Yaris, Honda Fit or ternatives is driving your comparable gasoline engines. publication AutoWeek. Ford Focus, you’ll likely ac- decision. A big motivation ■ Can run on biodiesel. Like what you see here? complish your goal without for many buyers recently You can find more in putting up with the has been the volatility of Minuses AutoWeek or at headaches of fuel-access or ■ gas prices — a taste of buy- Diesel fuel is often more www.autoweek.com. the buy-in cost associated expensive than gasoline ing gasoline at $3.35 a gal- with the alternatives. ■ lon inspires many to seek Biodiesel has limited OK, so your mind is set availability. PROFILES INSIDE out better mileage in the in- on a nontraditional vehicle. What’s new this year? terest of cost-savings. Let’s take a look at each va- Starting on Page E2, That’s probably the first riety and evaluate the pros you’ll find profiles of thing that comes to mind, and cons in terms of the Volkswagen Jetta selected models, mostly even as fuel prices are de- three priorities we’re con- redesigned or significantly clining again, because you sidering. FLEX FUEL updated this model year. can’t predict where prices will be during the term of Pluses MORE ON THE WEB your car loan. Hybrids ■ Can run on gasoline or Others, though, may put Hybrid powertrains, as ethanol blends such as E85. More Executive Wheels ■ a higher priority on seeking pioneered by Toyota and Reduced reliance on foreign coverage is at alternatives that contribute petroleum. www.crainsdetroit.com: Honda, extend your fuel to America’s energy inde- ■ economy by using electric Minuses Automakers that offer pendence. And still another European trips to pick up power from batteries to car- ■ Mileage declines when group may be most interest- your new car. ry some or, for brief peri- running on E85. ed in minimizing their “car- ■ The perils and ods, all of the propulsion ■ E85 still not widely bon footprint,” their per- pleasures of customizing. chores. available. sonal contribution to the ■ Extended warranties: When driven with fuel emissions that contribute Are they really worth it? GMC Yukon XL to global warming. See Fuels, Page E3 Beyond the ABCs of leasing: Is that a Ferrari I see? The basics Ed Yankowski, managing director of Yankowski says. Forget the fancy stuff Greenwich, Conn.-based exotic lease spe- Why tie up all of that $250,000 — or You probably already know this, but the cialist Putnam Leasing, offers three reasons $270,625 with tax — on one car when, for that Maybe you need to make the rational deci- pluses for leasing are lower monthly pay- why those making the big bucks consider same money, you can lease a fleet of inter- sion more than the emotional one. ments and/or the ability to drive a larger/bet- leasing their big-buck cars. esting vehicles or put the bulk into your in- To make up your mind, consider some- ter/more luxurious car than you could afford First, he says, there are tax considera- vestment portfolio? thing like the “Buy or Lease Your Next to buy. tions. If you live in Michigan and buy a The third perk is flexibility. Yankowski Car?” questionnaire on a Web site like A leased car has lower payments than the $250,000 car, you’re looking at 6 percent notes that perhaps 75 percent of Putnam’s bankrate.com. The Federal Reserve same car purchased outright, but you’re lim- state sales tax, or $15,000 in additional up- clients do not keep their vehicles for the full (www.federalreserve.gov/pubs/leasing) ited in mileage and customization options. front costs. By leasing, that money goes out, lease term, preferring instead to change vehi- provides sample lease contracts, charts that a small portion each month. cles more frequently. Unlike the typical lease get into the details and compare the finan- Something exotic So what, I’m rich, you say? Well, consider arrangement, Yankowski says Putnam’s leas- cial aspects of buying (a 60-month loan) vs. That’s right, you can lease a collector car, reason No. 2: es are set up with turnover in mind. leasing (for a 36-month term), as well as oth- whether it’s a Duesie or a Hemi, or you can “Leasing allows them to use their capital Besides Putnam, another specialist in un- er well-presented information you should lease that exotic Italian sports car just as if for what they do best, whether it’s investing usual and luxury auto leases is Woodbury, know before making your decision. you were leasing a new sedan. or real estate or even for buying other cars,” Conn.-based Premier Financial Services. — Larry Edsall DETROIT BUSINESS MAIN 10-23-06 B 2,3 CDB 10/18/2006 4:03 PM Page 1 Page E2 CRAIN’S DETROIT BUSINESS: EXECUTIVE WHEELS Fall 2006-Winter 2007 EXECUTIVE WHEELS package plus PAX run-flat tires re- power does not deter us from the What’s next: Awaits the arrival of LUXURY SEDANS ceive the Collision Mitigation Sys- perfect mix of luxury and perfor- the new 4.6-liter V8. tem. De-contented versions also mance found in Acura’s flagship. AutoWeek’s opinion: The hidden available. control panel is annoying in this Base price: $46,450 otherwise handsome and top- What’s next: Minor changes next Cadillac STS notch luxury sedan. Highlights: New six-speed auto- year, followed by a redesign in 2010 matic transmission for V8 and or 2011 with possible V10 power. STS-V models. AutoWeek’s opinion: The lack of V8 Base price: $42,590 Lexus GS 350 What’s next: Next year sees a re- skin, followed by a redesign in 2010. 306-hp power plant, which also ben- Acura RL AutoWeek’s opinion: Proof that efits from high-performance brakes and available 18-inch rims for RWD America has what it takes to com- Acura RL models. GS 430 now equipped with pete with the best of the world. Highlights: Two new trim pack- stability control system cutoff ages. Technology package adds switch. The hybrid GS 450h, avail- Lexus LS 460 navigation, AcuraLink, rearview Lexus GS 350/430/450h able since May, became the world’s camera, active front lighting and Highlights: GS 300 is replaced by first luxury hybrid sedan. Lexus LS 460/460 L/600 hL improved wood interior trim. Tech Cadillac STS the GS 350 to symbolize the 3.5-liter, Base price: $44,845 Highlights: All new, offers a long- wheelbase model for the first time, along with the world’s first eight- speed automatic transmission. Also, first-ever full-hybrid V8 pow- ering the LS 600 hL. LS 460 has a 4.6-liter V8 available with rear- and all-wheel drive. To raise its luxury game, the LS offers power rear reclining seats, power leg rests with massage functions and body-heat sensors. Base price: $59,000 (est.) What’s next: All new now. AutoWeek’s opinion: The new LS raises the benchmark for luxury sedans that much higher. Mercedes-Benz S-Class Mercedes-Benz S-Class Highlights: New ninth-generation S-Class engine choices include a 382-hp V8 and two V12s, a 510-hp version and 604-hp in the S65 AMG. Base price: $86,175 What’s next: All-wheel drive by year’s end, diesel coming. AutoWeek’s opinion: Back on top of the luxury sedan heap. Volvo S80 Volvo S80 Highlights: The S80 arrives all- new with a larger 3.2-liter straight- six and a 4.4-liter, 315-hp V8 option to do battle with German rivals. Have a safe flight. The S80 has adaptive cruise con- trol, advanced head restraints, Saab was founded by 16 aircraft engineers and their spirit lives on in the 2007 Saab 9-7X SUV.
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