car buying

There were about three million fewer cars sold in 2008 than 2007. Based on 2007's numbers, it would be the same as if Acura, Audi, BMW, Chrysler, Dodge, Jeep, Lexus, MINI, Porsche, and Saab all closed their doors in 2008. In terms of pure automotive carnage, that's not the kind of damage you can just buff out. And the predictions for the future agree on two points: it's going to get worse, and it won't return to what it was for years to come.

The Wall Street Journal puts forth the case that the government's $5 billion lifeline to GMAC has given GMAC a competitive advantage compared to its rivals. After the taxpayer cash was received, GMAC dropped the required credit score to get a loan and began offering 0% financing on several models, and rates from about 1% to 6% on a host of others. While doing so, it admitted that "without this [loan] . . . we would not be able to do this today."

Wal-Mart offers a closely-targeted audience: buyers looking for the best deal. Other companies have tried to piggyback on that and grab a slice of the immense Wal-Mart fan base. A used car company called Live X Auto Exchange could be the latest: it has set up portals in two Phoenix-area Wal-Marts that provide used car listings from local dealerships, banks, and private sellers.

Audi's five-door S3 and its Sportback sibling will now be able to benefit from the S tronic dual-clutch transmission. Mated to the 2.0-liter TSFI, you'll seamlessly shift from first all the way to sixth, with 265 hp on tap and 258 lb-ft. available from just 2,500 rpm. You'll also get even better gas mileage, with both cars registering 28 mpg, not to mention hitting sixty two-tenths of a second faster than would with a manual: 5.5 or 5.6 seconds depending on whether you're piloting the three- or five-door. The DCT is available now, and for better gas mileage, quicker shifts, and a quicker car... why wouldn't you?

Click above for a high-res gallery of the 2008 Scion xB.

My older brother Brian drives a Scion xD. He's 39 years old, and probably considered anything but cool by 18-24 year-old standards. He bought his little xD because he was tired of filling up his AWD 2001 Chevy Astro conversion van, and he's gone from getting 12 mpg to about 30. While that's a big-time win for Scion sales, the brand's marketing arm has to cringe. Scion was built to be Toyota's youth-oriented brand, with cars that would finally bring younger buyers into the Toyota showroom. The early days of Scion were a boon, with 80% of Scion buyers having never shopped Toyota before. Young people were clamoring for the xB and tC, and 100-200k online shoppers flocked to the Scion site each month.

Chrysler's departure from the leasing game certainly isn't going to help dealers move stale product off their lots, so the automaker has announced a new sales program unimaginatively named the "Shop 'Til You Drive Sales Event." What'll it take to get you into a new Chrysler, Dodge or Jeep vehicle?

Well, aside from $2,000 cash back on "select retail purchases," Chrysler is offering an August-only, 72-month, zero-percent APR financing deal on many of its slow-selling models that aims to make monthly payments approximately the same as a 36-month lease.

Additionally, pricing on Dodge, Chrysler and Jeep vehicles has been slashed, with the Ram dropping 40-percent of its MSRP, Aspen hacked by up to 25 percent, Town & Country minivans cut by 24 percent and Grand Cherokees dropping 28 percent.

Car sales in the U.S. flat-out suck right now, and both domestic and Japanese automakers are feeling the pinch. Chrysler posted a 13.2% decline in its Daily Sales Rate last month while offering 0% financing, so the Auburn Hills-based automaker has little choice but to continue offering free loans in an effort to stop the bleeding. Current deals include five years at 0% for 2008 models and six years for leftover 2007 models. Chrysler is also dealing with folks with less than perfect credit, which is a risky move with credit restrictions so tight right now.

If you're in the market for a Focus sedan, the question is, exactly what kind of Focus will you buy? According to Ford's option sheets, there are 100,000 different combinations you can create. Eighty percent of Focus sedan sales, however, are comprises of just 4,000 of those combos. This glut of choice has increasingly become an issue that translates into lost money, unhappy customers and overwhelmed dealers for the Big Three, and now they're going to trim the options tree.