Does Reliability Affect Luxury-Car Sales?

Luxury cars have moved past the days of the ignition-challenged Jaguars in AMC's "Mad Men," but many still have faults. The Mercedes-Benz M-Class and Buick LaCrosse rate below average in Consumer Reports' reliability surveys; the Lincoln MKX, BMW X3, BMW 7 Series and Buick Verano rate even worse. Then there's Jaguar, which earned low marks in J.D. Power and Associates' predicted reliability ratings for its entire 2012 crop. Sibling brand Land Rover fared little better.

Does it matter? Not as much as you think.

It seems luxury-car shoppers care for reliability as much as Don Draper cares for self-restraint. Through April, Jaguar and Land Rover sales are up 12.7%. The Verano outsold Buick's Regal and Encore combined. M-Class sales are down, but it's still Mercedes' best-selling SUV. The MKX is Lincoln's best-selling car. Period.

Are luxury cars unreliable on the whole? The jury's still out. Luxury brands took top honors in J.D. Power's latest Initial Quality and Vehicle Dependability studies, but they spanned the gamut in Consumer Reports' reliability surveys. That's why Jake Fisher, the magazine's director of auto testing, sees little correlation between luxury and reliability.

Unlikely Winners Top Strategic Vision's 2013 Total Quality Awards

How does the Chrysler Town & Country, one of Consumer Reports' least reliable cars on the market, earn a quality award? The same way a Volkswagen Tiguan, a car whose current generation garnered middling scores in J.D. Power and Associates' long-term dependability and short-term quality studies, does. San Diego-based Strategic Vision's released its Total Quality Awards on Monday. Some winners — the Toyota FJ Cruiser SUV and Tacoma pickup, the Kia Soul hatchback, the Lexus LS sedan — have high marks in other reliability studies. Others have anything but.

That's because the firm calculates its Total Quality Index, which originated in 1995, by polling new-vehicle owners on problems experienced and satisfaction with numerous other aspects. In essence, it mixes leading reliability studies from Consumer Reports and J.D. Power with scores for product and dealership satisfaction — the sort of metrics J.D. Power gauges in its Automotive Performance, Execution and Layout and Sales Satisfaction Index studies.

"A lot of quality scores out there simply count problems, and they have no way to be able to determine the importance of the various problems out there," Strategic Vision President Alexander Edwards told Cars.com. "We take a look at what are all the positive impacts plus the negative issues."

Reliability issues can sink an individual model, Edwards said, but the quantitative differences between what's considered reliable and unreliable are so narrow today that owners draw their perceptions from minor aspects — a loose door handle, for example.

2014 Scion tC Starts at $19,965

Scion's tC coupe debuted at the 2013 New York Auto Show with mildly freshened exterior styling as well as upgraded materials and features inside; it'll debut at dealerships next month with a slightly higher price. The 2014 Scion tC starts at $19,965 for models with the six-speed manual and $20,965 for automatic-equipped versions (all prices include a $755 destination fee). That’s an increase of $485 over 2013 base models.

Outside, the front-wheel-drive coupe wears new grille and headlight designs as well as LED taillights. Inside, there's a new 6.1-inch touch-screen audio system. Newly optional is an upgraded Scion BeSpoke audio system with navigation and smartphone app compatibility for $1,198. Under the hood, the previous version's 180-horsepower, 2.5-liter four-cylinder returns; Scion says it's mated to a faster-shifting six-speed automatic transmission for 2014.

The automaker announced pricing for its tiny iQ hatchback, too. The 2014 version also gets the new 6.1-inch touch-screen audio system and is otherwise unchanged. It starts at $16,420, including destination; model-year 2013 versions started at $16,250. The minicar also goes on sale in June.

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2014 Scion tC at the 2013 New York Auto Show
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What's the Most Affordable Compact Sedan?

Car shoppers want a long list of features in a new car, even if that car is a compact sedan that starts around $16,000. That starting price usually doesn't include what many consider "must-have" features — chief among them an automatic transmission.

We took 11 compact sedans and looked at their prices when equipped with the following features:

• Automatic transmission
• Cruise control
• USB input
• Remote entry
• Tilt/telescoping steering wheel
• Steering-wheel audio controls

It may seem like a simple search, but if you're looking at a new Nissan Sentra, Dodge Dart or Volkswagen Jetta, you'll need to know the specific trim level, options and option packages to ensure you won't regret not having that one missing feature.

We took those as-equipped prices and then added five years of fuel costs to come up with the most affordable compact sedan on the market.

Having recently purchased our long-term Honda Civic that has all of these features in a base model, we thought it had a good shot of scoring well here. But the results were somewhat surprising, especially in terms of what car was No. 1.

2014 Kia Sedona: What's Changed

• Most significant changes: a revised grille and standard LED running lamps and fog lights give it a fresh face
• Price change: both trims increase by $1,000–$1,710
• On sale: later this month
• Which should you buy, 2013 or 2014? There’s no 2013 model, so 2014 is your only option

The biggest news for Kia's minivan is that it's not dead. After taking model-year 2013 off, the Sedona is back for 2014 with a revised grille, additional interior features and a price bump.

Base LX and uplevel EX trims return. For 2014, LX models start at $26,750 and EX versions at $31,750; model-year 2012 LXs started at $25,750 and EXs at $30,040 (all prices include an $850 destination charge).

The van returns with an updated face that wears standard LED running lights and fog lights. Inside, there's a new interior storage console designed to hold tablet devices. Heated leather-trimmed seats and automatic climate control are newly standard on EX trims. Pretty much everything else carries over, including the 269-horsepower 3.5-liter V-6 and six-speed automatic transmission. It's still EPA rated at 17/24 city/highway mpg.

April's Fastest- and Slowest-Selling Cars

April's fastest-selling cars mixed luxury models with recent redesigns and, oddly enough, a few oldies. The Audi Q5 and Q7 — frequent speedy sellers despite their age — met the likes of the BMW X3, Land Rover Range Rover, Mercedes-Benz GL-Class and Lincoln MKZ. A couple 2014 redesigns also made the list: the Subaru Forester and Chevrolet Impala.

It's good news for Ford's Lincoln division, whose redesigned MKZ has been hampered by production setbacks during its launch. Both the MKZ and MKZ Hybrid were among April's fastest-selling cars, reprising the cars' March appearance — but with a key difference. As we reported on April 2, March's brisk sales pace didn't translate into higher sales, but that changed in April. Lincoln shoppers bought 4,012 MKZs and MKZ Hybrids, up 115.4% versus April 2012. It was the best month in the nameplate's seven-year history, Ford proclaimed.

A few oddball cars often land among the fastest sellers, and April was no exception. The current Scion xB hatchback hit dealerships in May 2007 while Nissan introduced the current Frontier pickup truck at the 2004 Detroit auto show. In car years, the elder Nissan is somewhere between actors Michael Caine and Christopher Plummer — and it hasn't aged as well. But the Frontier and xB spent little time on dealer lots in April, and both have minimal incentives. Go figure.

April's slowest sellers document the continuing sales trickle for two cars: the Acura ILX Hybrid and Chevrolet Malibu Eco. Both variants make up a good chunk of their respective nameplates in Cars.com new-car inventory, but they took 150 and 229 days, respectively, to move. Contrast that with April's 51-day monthly average, which stayed about even with March (48 days) but came in a bit slower than April 2012's 45 days.

Here are March's fastest and slowest sellers:

Lexus Prices 2014 IS

When the redesigned-for-2014 Lexus IS arrives at dealerships this summer, the luxury sedan will offer a number of newly standard features at a 2% discount from last year's price for IS 350 buyers, the automaker announced today. The rear-wheel-drive IS 250 will start at $36,845 and $39,380 for all-wheel drive; the IS 350 will start at $40,360 for rear-wheel drive and $42,595 for all-wheel drive (all prices include an $895 destination fee).

The IS 250 has a 2.5-liter V-6 good for 204 horsepower and 185 pounds-feet of torque, while the 350 has a 3.5-liter V-6 that produces 306 horsepower. Both the rear-wheel-drive and all-wheel-drive versions of the 250 come with a six-speed automatic transmission, as does the all-wheel-drive 350; the rear-wheel-drive model gets an eight-speed automatic.

Standard features include high-intensity discharge headlights, L-shaped LED running lights, drive mode select, paddle shifters, dual-zone climate control, a new touch-screen multimedia system with 4.2-inch color display, 10 airbags, and real-time traffic and weather information without a subscription. Lexus said the previously optional equipment totals $1,400.

Gas Prices Plummet Nationwide Except in Chicago Area

The national average price of a gallon of regular unleaded is $3.52 according to AAA. That's down 8.6% from this time last year, which traditionally is the beginning of a decline in gas prices that runs through July.

While states such as Colorado and Maryland are seeing relief at the pump to the tune of 36 cents and 41 cents a gallon, respectively, recent flooding has increased prices quickly in Chicago and surrounding areas.

In Chicago, gas prices are almost 3% lower than a year ago, but compared to prices from a week ago, they're up 7.5%. As a whole, Illinois' average gas price is up 5.5% from last week.

Surrounding states such as Michigan and Ohio are also seeing prices rise due to the storms.

Used SUV Prices Increase in April as Luxury Cars Fall

After two straight months of modest declines, late-model used-car prices saw a 0.21% increase in April to $22,667, on average. That's right about where prices were in January for 2010-2012 models.

Gas prices have been on the decline in recent weeks for most of the country, which might explain the appearance of two large Chevrolet SUVs — the Suburban and Tahoe — among the 10 models with the biggest price increases this month. The average asking price for Suburbans shot up 19%, or nearly $7,000, to $43,407 while Tahoe prices were at $37,824, a 5% gain.

Snapshot of a Hybrid Owner

According to new data from Experian, hybrid vehicles still make up only a small percentage of all cars on the road today, but they're gaining market share. The data company's study showed that hybrid car market share went from 2.2% in 2011 to 3.1% in 2012.

Who's buying hybrids? The study also took a look at the typical hybrid owner and came up with an interesting snapshot. First off, hybrid consumers have a higher credit score than those buying a non-hybrid car; the average score of a hybrid owner who applies for a loan is 790 compared to 755 for non-hybrid loan applicants. Experian also notes that hybrids tend to appeal to a younger audience; 25- to 34-year-olds are 16% more likely than average to live in a household that owns or leases a hybrid vehicle, the agency reports.