“They don’t want to be seen as avaricious, ostentatious and self-centered,” says Milton Pedraza, CEO of the Luxury Institute, a research group that focuses on the spending habits and trends of the wealthy. “Eighty-five percent of people worth $5 million or more are self-made [millionaires], and they are very frugal; that’s how they got where they are. They are very empathetic to the effects of energy prices on everyday people.”

For those who want to drive a high-performance luxury car loaded with high-tech features, and still be as environmentally friendly as possible, there are options. From sedans to SUVs, automakers offer a few cars that are every bit as stylish and luxurious as their brethren but don’t necessarily guzzle as much gas. However, the pickings are slim.

Behind The Numbers 

With luxury auto sales down nearly 13% (overall vehicle sales are down 8%), automakers are under pressure to offer environmentally friendly, high-performance vehicles that will hold their value. A greater potential for maintaining value equals a lower monthly lease payment and, most likely, a decreased sense that driving such a car is a prodigal expense.

To find the most guilt-free luxury cars, we first looked at vehicles priced $40,000 to $90,000 in the US and used Kelly Blue Book to measure each vehicle’s projected worth at the end of a three-year lease or purchase. A residual value of 50% to 55% for a three-year period is strong, says Eric Ibara, director of market valuation at Kelly Blue Book, but the number varies by segment. We then used Environmental Protection Agency (EPA) mpg estimates to narrow down the list.  

Two of the vehicles making the list are a clean diesel-powered sedan–the Mercedes-Benz E 320 Blue Tec–and a hybrid SUV–the Lexus RX 400.

The E 320 gets 9 L/100km on a 3.9-litre V6 diesel engine. Although diesel currently averages $4.79 a gallon in the US, today’s diesels burn cleaner and, overall, are more fuel efficient than comparable gas-powered vehicles. The E320, which starts at $68,100 CAD and comes with a multiple-airbag safety system, roll-over sensor and night security illumination, has a high residual value of 51%. That means lower lease payments and that purchasers can expect the vehicle to retain at least half of its value after the first three years of ownership.

The Lexus RX 400 hybrid SUV gets an EPA-combined 9.4 L/100km and is equipped with a 3.3-litre V6 engine that alternates between premium gasoline ($4.48 average per gallon) and an electric battery. Like the Mercedes E 320, the RX 400 has a high residual value of 54%.

Rounding out the top five are the Mercedes-Benz GL Class (55% residual value and 13.1 L/100km), the Jaguar XF (52%, 12.4 L/100km) and the Lexus IS F, the only car on the list that is not powered with a more efficient V6 engine. The IS F is equipped with a V8 that gets 13.1 L/100km, but the car has the highest residual value on the list at 59%. Buyers who want the high-performance of a V8 will sacrifice fuel economy, but the car does hold its value, meaning a better payoff down the line when it comes time to upgrade yet again.

Also making the list are the Lexus LS 460 (50%, 12.4 L/100km); Infiniti M35 (48%, 12.4 L/100km); BMW 5 Series (47%, 11.2 L/100km), Audi A6 (47%, 11.8 L/100km) and Mercedes-Benz M Class (47%, 11.2 L/100km).

Less Guilt Equals Fewer Choices

Unfortunately, when it comes to luxury cars low on guilt, the choices are slim. Most luxury cars offer fuel economy in the low- to mid-teens in terms of mpg and are powered by big V8 and V10 engines.

What some luxury cars lack in fuel economy, however, they make up for in safety. The Infiniti M35, for example, features some of the most up-to-date technology designed to help prevent accidents. When driving on the highway, a computer keeps the vehicle from drifting out of its lane, and the xenon headlights improve road visibility in bad-weather conditions.

Features that eliminate the stress of driving are offered in many of these vehicles as well. The BMW 5-Series has an active cruise control that allows the driver to stop the vehicle completely without losing the cruise-control setting. A touch of the pedal sends the car accelerating back up to the desired speed.

It isn’t all about the bells and whistles though. If consumers can get a hybrid version that offers the same experience as a comparable, traditional gas-powered luxury vehicle, then they will seriously consider it, says Alexander Edwards, automotive division president of the market research firm Strategic Vision. “It’s an attractive option if they don’t have to give up anything.”

Strategic Vision polled luxury-car owners six months ago and found that things like reliability, performance, image, prestige, workmanship, thoughtful engineering, handling and interior quality all rated in the top 13 of people’s priorities. And even though it’s technically not a luxury car, the vehicle that fulfills many of these qualities is the hot-selling Toyota Prius, Edwards notes.

“The Prius looks innovative; it has a thoughtful interior. The Prius is acceptable to luxury buyers. This is a car they can show off–it fulfills a luxury requirement for image.”

So perhaps when it comes to lowering the guilt of driving a luxury car, what it all comes down to is the perception of luxury rather than the auto industry’s definition of it. That’s certainly the case for the Luxury Institute’s Pedraza, who is considering the Prius and the MINI Cooper to replace BMW No. 2 in his garage–but he’s keeping the BMW 750i for his wife and young child. The small, fuel-efficient vehicle is for him.

“Let’s be practical about this,” he says. “This is the car I will drive.”

Forbes - Jacqueline Mitchell
 

Recently, kanetix.ca took a closer look at the vehicles quoted online for car insurance to see who had the most popular car brand; specifically for quotes obtained during 2006, 2007 and 2008. Add them all up and the following are the Top 10 car brands quoted online:

1. Honda
2. Chevrolet
3. Toyota
4. Ford
5. Pontiac
6. Dodge
7. Mazda
8. Nissan
9. Volkswagen
10. Hyundai

Collectively, these 10 automotive brands were represented over 70 per cent of the time through kanetix’s online insurance quote comparison services. Pretty impressive when you consider the well known, prominent car makes not listed, and there are many like Acura, Chrysler, Jeep, BMW, GMC, Saturn, Kia, Mitsubishi, Subaru, Buick, Audi, Volvo, Lexus, Saab to name but just a few.

A year-by-year summary

kanetix.ca also looked at each year (2006, 2007, and 2008) individually, rather then cumulatively. For each year, the Top 10 car brands are the same; although there is movement as to where they placed. Of course there are exceptions, like Honda (1), Pontiac (5), and Nissan (8) who kept their respective placements each year. In contrast, Hyundai and Volkswagen like to switch spots occasionally, as do Dodge and Mazda.

The most movement has been among Chevrolet, Toyota and Ford. Of the three, in 2006, Chevrolet placed 2nd, Ford 3rd, and Toyota 4th. Each year since 2006, Toyota has leapfrogged over the car brand ahead of it; in 2007 it swapped spots with Ford to place 3rd, and so far in 2008 it has swapped spots with Chevrolet to place 2nd.

The price of gasoline is unconscionable. Who would have thought it possible we’d be paying over $1.20 a litre in some parts of the country, with talk of even higher prices down the road? In fact, AAA points out it’s costing us an average 22 percent more for gas today than just a year ago. Many wonder when this will end. Some get mad. Others suck it up and just pay the price, figuring it will go away. It won’t. But what can you do about it? 

After dismissing the thought of boycotting your local gas stations – a pleasant thought, but a move that won’t get the kids to school or you to work – you’re faced with thinking over some real options. We think of these, too … and here are some that come to mind. None of these involve dumping your car and getting a new one. We know that’s not always possible, especially if you’re in the middle of a lease with nowhere to go. Plus, if your vehicle is a larger model like an SUV that gets marginal fuel economy, its present sale or trade-in value probably leaves a lot to be desired. So, if you need to keep driving your everyday ride but just have to do something about the high gas costs that are wrecking your budget, then give these tips a shot. 

1. Start here: Don’t drive as much. Really, this isn’t as painful as it sounds. We’ve grown accustomed to our cars providing mobility on demand, which is a good thing when it isn’t hurting our wallets or contributing to growing oil dependency. It’s not so good when the reverse is true, which is the situation today. So plan ahead. Consolidating your day’s errands into sequential trips one after another is a great strategy that will save gas. It will also cut tailpipe emissions by eliminating unnecessary cold-starts when your car’s emissions control system is least effective.  

2. Ease off on the pedal, Speed Racer. Okay, maybe you’re not really hot rodding your way down the street, but chances are pretty good you’re not thinking about taking it easy from one traffic light to the next. Light accelerator pressure and a conscious effort to avoid quick starts and stops do make a difference in fuel economy, sometimes a pretty big one. Give it a try. While you’re at it, smooth out your pedal pressure at highway speeds as well by using your cruise control whenever appropriate.

3. Feeling the need for speed? Let it go. It’s easy to creep past posted speed limits without thinking about it, especially on urban highways where traffic often tends to move well beyond the limit. The problem is that fuel efficiency diminishes rapidly above 95 km/h. In fact, the EPA says that each 5 mph (8 km/h) driven above that speed has the net effect of costing you about 20 cents more per gallon of gas.

4. If you’re filling up on mid-grade or premium fuel, check to see if you really need to do this. Some high-compression engines do require higher octane fuel to run properly, and in fact serious engine damage could result from using a lower grade fuel than is specified in your owner’s manual. But if you don’t need premium fuel you shouldn’t be filling up with it. Premium fuel costs more per litre but doesn’t provide better performance in engines designed to run on regular … so you’re essentially pumping cash out your tailpipe. Not a pleasant thought, is it?  

5. Check your tire pressure weekly and keep your tires aired up to the recommended psi. This is so simple you’d assume everyone does this regularly. Not so. And that’s too bad since tires with low pressure create greater rolling resistance that can cost you up to 3 percent in fuel efficiency. Tires heat up while you drive and checking them while hot will give an artificially high reading. Make a habit of checking tire pressure before driving when your tires are cold. You might also consider buying low rolling resistance tires the next time your car is ready for new treads.

By Ron Cogan
Greencar.com 

They are among the country’s least-trusted business providers. The 2007 Better Business Bureau/Gallup Trust in Business Index reported that only 16% of survey respondents had a “great deal of trust” or “quite a lot of trust” in auto dealers; 17% indicated as much for real estate brokers and 21% for cellphone and wireless providers.

What’s behind this suspicion? Consumers have complained to the Better Business Bureau that some dealers inflate charges, pressure buyers into purchasing features and options they don’t need and slip in additional costs.

But you don’t have to walk into a dealership expecting to be taken for a ride. Arm yourself with a few rules of engagement and you may walk out with a lot of car for less than others pay.

And if buying off the lot doesn’t work for you, consider the vast amount of used-vehicles sold by owners. Check the local classifieds to find the vehicle you’re seeking, but only 1 to 2 years old, you’ll likely end up saving thousands of dollars. And those seeking a shorter term commitment, also consider the option of taking over someones auto lease. They’ve already thrown down the deposit, you’ll likely be able to afford a more luxury vehicle, and your commitment may only be months, if not 1 to 2 years. Learn more on how to take over a car lease.

“The slow-thinking and slow-buying market is always the most informed,” says David Stivers, an independent auto industry consultant. “Salesmen prefer the spontaneous buyer; that’s the more lucrative person. They saw an ad and decided they had to have it. They left out the door without any information.”

Top Tips

Negotiating with and waiting for dealers to approve a price or paperwork often results in wasted time. Such deliberations are often stall tactics designed to wear you down.

Before beginning discussions, ask how long it generally takes to process a sale and if the price is negotiable. You also want to know if the salesperson is empowered to negotiate or if the manager must be involved. Learn the tips on preparing how to negotiate a car lease.

“The average amount of engaged time should be one-and-a-half to two hours,” says Mark Rikess, CEO of the Rikess Group, an automotive dealership consultancy. “But the average amount of time people are engaged is three to four hours.”

Some dealers will attempt to request a credit report without your written consent simply for the purpose of negotiating. Auto experts advise against allowing salespeople access to consumer credit information; armed with this data, dealers may use that against you in negotiations by charging you a higher interest rate based credit scores that are less than perfect.

Once the dealer agrees to a price you are comfortable with, don’t be afraid to ask for it in writing. This will prevent the dealer from hooking you with a lower, verbal quote and then changing it when you return to close the deal. And use the written quote to comparison shop. If another dealer won’t counter with a lower quote, then don’t waste time haggling.

When it comes time to close the deal, make sure you are not paying for options you didn’t ask for or for things which you are not required to pay for. Dealers aren’t supposed to charge you for cleaning and washing, or “prepping” your car for delivery, for example. Some do anyway. Another big-ticket item dealers may slide into the contract: an alarm system. If you didn’t ask for it, don’t pay for it.

This should come as no surprise: Some crafty dealers are all too happy to charge you more than what their service is worth. For example, to etch the Vehicle Identification Number (VIN) on your vehicle, a dealer may charge several hundred dollars when the practice often costs much less. Before signing, scour the final transaction papers to make sure you comfortable with how much you are being charged for ancillary items and services.

Of course you can study up and still not get your desired prices. In that case, as with all negotiations, you need to “be prepared to get up and leave,” says Rikess. “Don’t consider it rude if you are not getting what you want as a consumer. Don’t even hesitate to just walk away and leave.”

Forbes - Jacqueline Mitchell

Or they can head to a Toyota dealer and ask about the Yaris.

The $13,165 subcompact is the most fuel efficient in its class, according to the Environmental Protection Agency. It gets 29 mpg (12.3 km/l) in the city and 36 (15.3 km/l) on the highway. Drivers paying $1.50 a litre can expect to pony up $2,000 a year if driving 25,000 kilometres.

Other wallet-friendly vehicles include the Honda’s Civic Hybrid, the MINI Cooper and the smart fortwo convertible.

Small cars like these have scored big among buyers looking for a way to control rising gas prices; over the last year, the average cost of a gallon has risen more than 60 cents.

Thursday, automakers reported higher sales of small cars. Sales of the Ford Focus, for example, increased 32% last month and made up a third of Ford’s passenger car sales.

Leasing one of these fuel-efficient cars may be a great alternative to financing the vehicle. Car leasing in todays market with credit crunch and slow economy may be the preferred means to acquirying a new vehicle. And those who find themselves stuck in their lease, do have options available to terminate a car lease early through services that help individuals get out of a lease early, and those take over a short term lease.

Overall vehicle sales, however, have plunged. Chrysler reported a 29% drop, General Motors 23% and Ford 19%. Toyota’s sales fell 4.5%, and Honda’s and Nissan’s both dropped 2%.

But small cars aren’t the only options available to cost-conscious drivers.

Wallet-Friendly Wheels
Those unable to give up their need for speed might steer toward the Audi TT Coupe. The four-cylinder, two-litre sports car takes only premium gas but won’t set you back a fortune in gas each year, according to the EPA’s measures.

Growing families have a couple options. The Volkswagen Passat Wagon gets 21 mpg (8.9 km/l) in the city, and 29 (12.3) on the highway. That will cost parents $2,800 a year. The Ford Escape Hybrid SUV gets an enviable 34/30 mpg (14.5/12.7 km/l) city/highway for a $1,700 yearly outlay.

While hybrids like the Ford Escape are good options for some, experts say an analysis of your actual driving needs is the best way to maximize your fuel economy.

“If your commute includes a lot of highway driving, then a car with a manual transmission or diesel engine is much better than a hybrid,” says David Champion, director of Consumer Reports Auto Test Division. But “if you commute through heavy traffic, then go with a hybrid.”

What’s more, not all hybrids and high-mileage vehicles are going to be worth the savings in fuel. A hybrid SUV might save buyers as much as 25% in gas, but those savings are likely to be eclipsed by a massive price difference over comparably priced SUVs. The Ford Escape is a fairly affordable SUV at $23,999, but the hybrid version costs an additional $7,500.

The same principle also applies to traditional cars. Toyota’s wildly popular Corolla gets a solid 32 average mpg (13.6 km/l) compared with Chevy’s Cobalt, which only gets 25 (10.6 km/l). But the Cobalt can cost up to $4,000 less for the 2008 model. So unless you plan on keeping the Corolla for eight years, buying on the sole basis of fuel economy doesn’t make much sense.

Top Tips
If you’re not ready to buy a new car, fuel efficiency can be increased with a few common-sense measures. Weight from the number of passengers or a cluttered trunk is a major consideration, though it tends to be more important in the city. Too often, aerodynamics play a part since drivers leave roof racks on cars lose as much as six mpg (2.5 km/l) as a result.

But according to experts, the most significant impact on fuel efficiency is the way you drive.

“Driver behavior is far and away the biggest impact on fuel efficiency,” says Philip Reed, consumer advice editor for automotive Web site Edmunds.com. “Acceleration is the greatest factor wasting energy, gas and polluting. But in most traffic situations accelerating isn’t going to get you there any faster.”

Forbes - Andrew Egan