There’s a lot of debate going on about the federal government “bailing out” the Big 3 automotive manufacturers: Ford, GM, and Chrysler. I’m all for it because not doing so is going to absolutely kill the used car market in this country for the consumer in two to three years. Let me explain why.

If a major manufacturer goes into bankruptcy, it’s going to decimate a lot of suppliers. Quality is going to go downhill as prices drop. Plus, with bankruptcy comes staff downsizing. There will be less quality control on the production lines, which means more problems are going to slip through.

Create enough quality control issues and nobody is going to want to buy a 2009 domestic used car in a couple of years. That means foreign companies will have an edge and charge higher prices. Less people will be able to afford good, high quality used cars. I’m not being xenophobic about this. I know a lot of foreign manufacturers have domestic plants. This isn’t an us vs. them rant. Maybe I should say bailout vs. non-bailout companies.

I do have one “caveat” to my support. There has to be changes with this money. It has to be a loan. The government needs to own part of the company and have seats on the boards of director of each company.

My fellow automotive guides have chimed in, too. Christine and Scott Gable at Alternative Fuels have this to say. Jonathan Lamas, our guide to Mustangs, has a strong perspective on the issue, too.

What do you think about the bailout? Good idea? Bad idea? Share your comments below.

In October, the credit crunch stifled growth and caused softening in every used-vehicle segment, according to the latest AuctionNet data from the NADA Used Car Guide. Among all one- to five-year-old vehicle segments, passenger cars showed the biggest price decline from September, as their wholesale values fell 9.6% to $11,620. Suddenly, that used 2006 Ford Crown Victoria (right) is looking mighty attractive.

That reporting comes courtesy of AutoRemarketing.com (I read these online magazines so you don’t have to). It also reports that pickups and SUVs fell 5.7% and 5.3%, respectively. These segments had been making steady improvements each month since July. Crossovers were down 6.3% from a month ago at $14,393 and vans took an 8.8% price hit at $9,587.

It’s a drum I’ve been beating for a few months now, but don’t be hesitant to buy a used car. Lots of folks are being cautious (understandably) but it’s a great time to buy a used car, truck, SUV or crossover. Gas prices are dropping, too, which makes a new car that much more affordable.

Are you in need of new transportation, but holding off? Let me know why in the comments section below. Feel free to tell me, “It’s the economy stupid.” I just want some real-world feedback.

Photo © Ford

Winding Road, an online ezine for car enthusiasts, has an interesting article in its current issue: “Ten Cars That Looked Better Before Their Makeovers.” Out of the 10, I agree with one: the original Scion xB (pictured at right) has a lot more character than the remake.

Style changes are hugely important in the used car marketplace. If a redesign is a hit, prices on the previous generation drop like a rock because everybody wants the new one. Come out with an unpleasing new design, and people want to hold onto the originals that much longer (i.e. any post 1973 Mustang vs. the ‘60s models).

What redesigns do you think have failed? What cars are New Coke vs. Coke in your eyes? Share your thoughts below. Something tells me the Used Cars Comment of the Week is going to come from this discussion!

Photo © Scion

A particularly blistering comment towards me is this week’s “Used Cars Comment of the Week.” It’s from a reader with the screen name of Chuck Manson. Why somebody would want to adopt the name of a serial killer is beyond me, but to each his own.

Anyway, Chuck took me to the woodshed for my including in a blog news from a “Mother Jones” article about John McCain’s support for legislation that would have established uniform federal standards for salvage titles.

Here’s what Chuck had to say:

“Stephanie Mencimer writes for "Mother Jones" a far far left, if not "loony left" publication. She has a history of writing tripe like this and it exposes your own ideology. You lefties will say, lie, and cheat anyway you can to discredit a fine man like John McCain. The facts are just the opposite of what you blog. But you knew that or you're just plain STUPID! Why else would you blog this and not research the facts? Remove my name from your list of recipients as I no longer wish to hear from such an idiot. If you're this biased and this stupid I certainly can't depend on you for rational and logical advice about used cars.”

Chuck also had some disagreements with other readers of the blog. So, why is somebody who criticizes me the “Used Car Comment of the Week”? Because it’s Election Day on Tuesday and I believe 100 percent in Freedom of Speech. I think Chuck reminds me how important that right is, especially when it’s critical speech.

As I said in the original blog, tell me if I'm off base in the comments section below. More importantly, remember to vote on Nov. 4!

Photo © Getty Images

To paraphrase Shakespeare, “Get thee to a GM dealer” if you were hoping to take part in the GMAC Financial Services program that offered 3.9 percent consumer loans for 60 months on all certified pre-owned models of the Chevrolet Impala and Pontiac G6 sedans and Chevrolet Silverado and GMC Sierra trucks. According to Automotive News (subscription required), the program, originally scheduled to run through Jan. 5, has been abruptly shuttered as of Nov. 3. GM blames the credit crisis.

That means you could get some good financing rates on the four vehicles this weekend if you were at all on the fence. Frankly, none of those vehicles would have me rushing out the door, even with good financing. But, to each his own, as the saying goes.

According to the article, a spokesman said GM is studying future incentive programs and that GM plans a different certified used-car incentive on Nov. 4, but he declined to give details.

From research I’ve done, it’s only GMAC and Chrysler showing signs of credit strain. Ford apparently still has money and foreign manufacturers have not pulled back to the best of my knowledge.

The results are in for Consumer Reports' annual survey on automotive reliability. The big news is being green doesn’t mean you have to sacrifice reliability.

CR reports: “From the Family Cars category, the Toyota Prius, the Toyota Camry Hybrid, and the Nissan Altima Hybrid, as well as the luxury Lexus GS 450h Hybrid sedan are all among the most reliable. The Lexus RX 400h and the Toyota Highlander Hybrid are among the most reliable in midsized SUVs, while the Ford Escape Hybrid and Mercury Mariner Hybrid small SUVs rated above average in predicted reliability. The Honda Civic Hybrid is also above average.”

There’s great news if your used car is a Ford, Lincoln or Mercury. As Consumer Reports says, “Ford’s three nameplates – Ford, Lincoln, and Mercury – lead the domestic automakers and continue to pull away from the rest of Detroit. Except for some truck-based vehicles, almost all Ford products are now average or better. Excluding those, Ford’s reliability is now on par with good Japanese automakers.”

Overall, the Scion xD has the best predicted-reliability score for new cars. Its owners reported 80 percent fewer problems than the average new car in the Consumer Reports survey. The Chrysler Sebring Convertible (photo above) has the worst predicted-reliability score among new cars in our survey. It is 283 percent worse than the average model. I reviewed one back in 2007. I can attest personally to its fallibility as probably the worst experience I ever had with a car.

Photo © Chrysler LLC

Intellichoice.com is out with its list of the best Certified Pre-Owned programs. Frankly, I’m not that surprised by any of the winners because they all have strong reputations. So, without further ado, the envelope please:
Luxury Cars
Overall: Volvo
Warranty: Porsche
100% Inspection Compliance: Audi, Infiniti, Jaguar, Land Rover, Lincoln, Mercedes-Benz, and Volvo
Brand Value: Lincoln

Non-Luxury Cars
Overall: VW and MINI (statistical tie)
Warranty: MINI
100% Inspection Compliance: Ford, Mercury, Nissan and Suzuki
Brand Value: General Motors

In a news release announcing the awards, James Bell, editor of IntelliChoice.com, said Volvo and Volkswagen are repeat winners from last year, but the battle for CPO supremacy is tighter than ever, as 2008 marked the first mathematical tie in the Non-Luxury cars category (VW and MINI).

“Many automakers score high on CPO rankings, so those that come out on top are to be commended for beating stiff competition,” said Bell. “There’s also good news for American automakers here, as Ford and GM scored tops on Brand Value for Luxury and Non-Luxury vehicles, respectively.”

Have you had good luck or bad luck with a certified pre-owned used car warranty program? Please share your comments below.

2005 Volvo V50 Photo © Volvo

OK, so the Used Car Comment of the Week robot apologizes for taking the week off to view the foliage in New England. Or something like that.

Anyway, hats off to Christine Mitchell for good advice in what is her used car comment of the week (original comment):

I bought my 1998 Subaru Outback in 2001 with a salvage title. It had 35k miles on it and I paid around $13k for it which was less than a clean title car of that make/model. I actually bought it from a guy in Sacramento who buys salvage vehicles, repairs them and then resells them. So, when I bought the car it was already repaired and looked and drove beautifully. It's been a really good car for me and my family, I've never had any problems out of the ordinary with it. Having said that, I would caution anyone who is thinking of buying a salvage title to do their research. Find out why the car has been salvaged. If it was in an accident and had some body damage for example (which mine had) then it could be a good deal, if it's a flood damaged vehicle on the other hand, it's probably not worth the headache (electrical problems etc).

By the way, this is not an endorsement of Christine’s website, but she got involved in the business because of her positive experience with owning a salvage title vehicle.

There is life after a salvage title. You just have to know what you’re doing before heading down that risky road.

Ever owned a salvage titled vehicle? If so, share your experiences with others via the comment section. This is a top topic on this website.

Photo © Getty Images.

It’s probably tough to imagine, but there appears to be a clear choice in the used car arena when it comes to the presidential candidates: Barack Obama. According to a Mother Jones article, John McCain is no friend of the used car consumer.

The piece by Stephanie Mencimer says, “As chairman of the Senate Commerce Committee, the GOP candidate pushed legislation that would have helped sleazy car sellers get away with defrauding consumers.”

Chief among Mencimer’s claims is “back in 1997, McCain cosponsored legislation that would help used car dealers sell rebuilt wrecked cars to consumers, at inflated prices, and without disclosing the damage.” In effect, the legislation would have allowed used cars previously tagged as salvage to be titled clear and free.

Fortunately, the legislation never passed thanks to strong lobbying to President Clinton. It makes me nervous what a President McCain might approve if given the same opportunity.

What do you think? Am I off base? Would John McCain be a friend of the used car consumer? Comment below.

Photo © Getty Images/Chip Somodevilla

A sad cautionary tale about buying a used car comes via a Stephanie Zimmerman column in the Chicago Sun Times. She writes about a woman who bought a used minivan and got absolutely hammered by the dealer until she staged a successful one-woman protest outside his store to get her car fixed under the warranty he sold her.

Zimmerman does a good job outlining the mistakes the woman made:

• She paid $13,000 for a 2002 Mercury Villager minivan worth about $7500 because she never researched its true value.
• She didn’t get the Villager inspected by a qualified mechanic because the dealership wouldn’t let her. This is the point in any transaction when klaxon warning bells starting whooping. Walk away.
• The buyer also didn’t obtain a CarFax report. I know they are not the be all and end all, but it is a great basic tool to have.
• She also didn’t get informed about the limited warranty on the vehicle, which presented the greatest problems when the vehicle (almost predictably) broke down within a few months.

Have you have similar problems with a used car purchase? Please share your story below by posting a comment so others can benefit.

Photo © Ford