Considering Nissan Leaf or Chevy Volt? Leasing May Make More Sense

In the next two months the Nissan Leaf and Chevy Volt will officially go on sale, both with $7,500 in federal tax credits that have been heavily advertised and marketed to potential buyers. However, that $7,500 isn’t going to be easy to come by for all buyers. That’s why leasing one of these two cars may be the more accessible option.

If you’re thinking about buying, here’s what you have to keep in mind: To take the full $7,500 tax credit, you must have a tax liability of at least $7,500. For a single person, the minimum gross income needed to reach the $7,500 liability level is $54,680, according to Bob Meighan, VP of TurboTax, the tax software company owned by Intuit.

While that may sound like a lot, the salary is just about right for Leaf and Volt shoppers, according to Credit.com, which says that an individual shouldn’t spend more than 15% of his or her pay (after payroll deductions) on a car payment.

While the Volt’s $40,280 and Leaf’s $32,780 asking prices are significantly higher than the roughly $28,000 average asking price of today’s new cars, leasing may be one way for folks who make less money to go electric.

Cars.com iPhone App Update Now Live

If you haven’t updated your iPhone’s apps in the past few days, you’re missing out on an important update to Cars.com’s app. You can now filter your new- or used-car searches by not just price and model year but also color, body style, mileage and transmission type.

If you haven’t already downloaded the app, you can get it via iTunes here. 

2011 Kia Optima Priced at $18,995

The hotly anticipated, redesigned Kia Optima received a price tag today of $18,995, excluding a $695 destination fee. This makes the Kia the most affordable entry in the midsize-sedan segment for the 2011 model year; it even undercuts its blood brother, the 2011 Hyundai Sonata, by $200.

The Optima will come in three trims: LX, EX and SX. They're equipped with a base 200-horsepower, 2.4-liter four-cylinder engine. A 274-hp, turbocharged 2.0-liter four-cylinder — the same engine found in the Sonata turbo — will also be available at launch as an option on EX trims and standard in the SX. We'll have details on the turbo later today as it debuts at the Los Angeles Auto Show. A hybrid model will go on sale later next year.

Lincoln Makes Free Maintenance Standard

In move that is increasingly becoming a prerequisite for luxury automakers, Ford’s Lincoln brand will offer a free-maintenance program for all of its 2011 model year vehicles.

The program covers oil and filter changes, tire rotations and multipoint inspections on wear-and-tear items, such as windshield wipers and brake linings, for eight service visits. The service is also fully transferable if you sell your Lincoln.

Over the summer, Lincoln starting offering free maintenance as a short-term incentive. Apparently, the program was successful enough to keep. Lincoln joins the growing ranks of luxury makes – including Jaguar, Saab, BMW, Land Rover, Volvo and Cadillac – that include some sort complimentary maintenance.

Movers and Losers: October 2010

SUVs and crossovers continued to move off dealer lots at a fast clip in October. Fifteen of our 22 Movers this month fell into this category. However, no pickup trucks made the Movers’ list this month.  The slowest-selling Ford F-150 — the 2010 regular cab configuration — sold in 56 days, which is well above the 69-day average for new 2010 and 2011 models.

While October was a positive month for automakers, the average time it took to sell a new 2010 or 2011 model climbed from 61 days last month to October’s 69-day average.

Because of the model-year turnover, our Losers list couldn’t just be comprised of vehicles without a 2011 version on lots. To compensate, we also included vehicles that are being discontinued entirely and some with 2011 models that aren’t widely available yet.

That means some of our Cars.com picks for good deals have been on lots longer than our Losers. We’re also including a count of how many Losers and Picks are in the Cars.com national new-vehicle inventory as of this morning. Click the numbered link and you can search the listings. All of our 2010 picks this month make up a substantial portion of how many new vehicles — 2010 and 2011s — are on lots.

Check out the lists below.

People Hold On to Their Cars Longer

In 63.9 months we’ll know which teams are playing in Super Bowl LX. That’s the same amount of time today's car owners are holding on to their cars. That number is up 4.5 months since the same time last year.
 
Polk, the company behind this figure, doesn’t give a reason for the increase, but a fragile economy combined with better, longer-lasting vehicles is certainly factors. The increasing frequency of 60- and 72-month car loans would contribute as well.

Polk suggests this upward trend won’t slow in the near future. What do you think? Have you held onto you current car longer than others you’ve owned in the past? Tell us in the comment section below.

What Kind of Car Insurance Should I Get?

If you’re trying to make sense of the different types of auto insurance coverage, our recently published Cars.com advice column is here to help. We explain the difference between collision and comprehensive insurance, and we also provide advice about what level of coverage is suitable based on your driving habits.

What Kind of Insurance Should I Get?

Honda, Toyota Still Top Consumer Reports' Reliability Survey

While GM had the biggest improvement — 83% of its vehicles are now considered average or better, which is up from 50% last year — in Consumer Reports’ Predicted Reliability Survey, Honda and Toyota are still the major automakers atop the list. The survey is an annual gauge of how well automakers are progressing in terms of vehicle quality. The metrics may seem strange, but the large sampling size of current owners figures into how CR predicts future reliability.

Tiny Toyota subdivision Scion sits at No. 1 with just three models, and luxury sports car maker Porsche, which is at No. 2, doesn’t really factor into most car shoppers’ consideration set. At Nos. 3 and 4 respectively, Acura and Honda are the real top dogs.

Hyundai CEO: 80% of Cars Bought Here Will Be Built Here

Hyundai CEO John Krafcik told CNNMoney yesterday he expects four out of every five Hyundai models sold in the U.S. to be built here by the end of next year. That includes the redesigned Elantra, which is slated to move to the automaker's Montgomery, Ala., plant from its current production in Korea; this would put Hyundai atop the automotive pile in terms of the percentage of cars bought here that are built here, CNNMoney reports.

That's not to say Hyundai's U.S. footprint eclipses the Detroit Three.

Mercedes Dealers to Use iPads on Sales Floor

Mercedes-Benz says it will distribute 3G versions of the Apple iPad to all 355 dealerships in its network by the end of October. The iPads will allow dealers and car shoppers to review important lease or financing information more quickly, without going back to a salesperson’s desk, according to Mercedes-Benz Financial.

The move comes after a 40-dealer pilot test in June in which the iPad, in conjunction with Mercedes’ software, was used by dealers and car shoppers. Both found that the tool helped expedite the sales process and the lease vehicle turn-in process.

Mercedes also likes to point out that it was one of the first automakers to allow owners to manage their accounts via an iPhone app.