Dependable Lexus
Lexus once again topped the J.D. Power and Associates dependability study. In fact, as the New York Times recently reported, Lexus now stands alone atop the closely watched ranking of vehicle dependability after Buick slipped from the No. 1 spot it shared with the Japanese luxury brand last year. This is the 14th straight year that Toyota's high-end brand has held the top position in the annual study, which measures problems experienced by the original owners of vehicles after three years. Lexus had 120 problems per 100 vehicles, down from 145 last year. Ford's Mercury brand ranked second, followed by General Motors' Cadillac. Toyota itself was fourth and Honda's Acura luxury brand was fifth. The overall industry average improved to 206 problems per 100 vehicles, from 216 a year ago.
Small cars, big options
Not too long ago, budget-minded car buyers chose small cars for one reason: they were cheap. As the New York Times recently reported, price-conscious consumers a decade ago turned down options such as air-conditioning, power windows and CD players to keep the price low. These days, people of all income levels are buying small cars to pinch pennies at the gas pump, but they are not scrimping on creature comforts. Instead, they are spending hundreds or even thousands of dollars on options such as heated leather seats and high-end entertainment systems usually found in luxury cars. For example, small-car buyers often pay $600 extra for a sunroof, $500 for satellite radio or $400 for a hands-free phone. This trend adds up to some good news for automakers, which have long had trouble earning profit on small cars.
