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Automakers are offering more fuel-efficient cars than ever

Even with gas prices near their lowest point in more than a decade, Americans are still concerned about the fuel economy of their cars. More than 4 in 5 consumers say gas mileage will be an important consideration the next time they go shopping for a vehicle, according to the results of a new survey conducted by the Consumer Federation of America, which were released Monday. That's no surprise, says Jack Gillis, director of public affairs for the nonprofit organization. "Consumers have had a long history with volatile gas prices," he said. Though motorists have saved approximately $12 billion this year at the pump compared to 2015, according to AAA, car shoppers expect gas prices to rise again in the future. The average respondent to CFA's survey predicted a price of $3.50 per gallon within the next five years, a figure in line with projections made by the US Energy Information Administration. When those consumers visit dealerships, they'll have plenty of options. More models than ever are achieving 30 miles per gallon or more, according to CFA's annual analysis released in conjunction with the survey, and 15 of 16 major car companies improved their fuel efficiency on their 2016 model-year offerings. Only Ford backslid year over year, per the report. Researchers say American consumers are now enjoying the widest range of fuel-efficient options ever offered, in every vehicle class. Of 1,094 models on sale in 2016, 13.4 percent achieved more than 30 MPGs, an improvement from 11.7 percent in 2015. At the same time, the percentage of gas guzzlers offered for sale has declined. The percentage of vehicles on the market that get 16 miles per gallon or less has fallen from 6.1 percent to 4 percent, says CFA. "Even if you're in the market for a large pickup or SUV, you'd have to go out of your way to find a true gas guzzler," Gillis said. ""Consumers have had a long history with volatile gas prices." – Jack Gillis These results, the CFA suggests, indicate federal standards that prod automakers to invest in fuel-efficient technology are having the desired effect. Manufacturers are keeping pace with the requirements of the Corporate Average Fuel Economy standards, which mandate carmakers achieve a standard of 52.5 miles per gallon in testing, equivalent to about 40 miles per gallon in on-road performance, by 2025. CFA's report singled out Mazda as setting an exemplary standard.

Should you buy a leftover 2015 or a brand new 2016 model?

One of the most common questions I get asked as a car dealer and auto auctioneer is, "When is the best time to buy a new car?" The answer is usually the time period between Labor Day and the middle of November. That's because this is when new car dealers and the manufacturers are trying to get rid of their current-model-year vehicles to make way for a small army of 2016 models. Rebates, incentives, cheap financing, and overstocks of unpopular models all help create the liquidity needed to turn the old inventory into a new set of wheels for the buying public – often at a very reduced price. But sometimes the "old" new car isn't a better pick than the "new" new car. It depends on a lot of factors, including the car in question and the differences from one model year to the next. I recently received an email from Jeff, who is interested in the Mazda CX-9 and asks whether he should buy a 2015 model or wait for the new version that will debut soon in LA. I'll use his as the example case. Length of Ownership The longer you own a vehicle, the less model year depreciation will be an issue. For example, the difference in value between a five-year-old Mazda 6 and a six-year-old version is about $1,500 according to the Manheim Market Report ($5,600 vs. $4,100). But if you look at the difference between 10-year-old and 9-year-old versions of that same vehicle, the price difference shrinks all the way down to $200. Because Jeff plans to own his new crossover for many years, the 2015 model wins in this category. View 19 Photos Rebates and Incentives The current CX-9 has a $4,000 cash incentive from Mazda. This is in part because Mazda still has quite a few left over. That $4,000 rebate for the current model is already coupled with even stronger discounts at the dealer level for those leftover 2015 models. TrueCar is showing that a loaded 2015 model can be had for $7,000 off the sticker at $28,600. You may even be able to beat that price by negotiating the deal yourself. Another thing to consider is that new models tend to be in high demand when they launch, which means that your purchase price will likely be substantially higher with the new model than it will with a leftover 2015. Again, financially speaking, this is a vote for the 2015 model. New Stuff It's also important to weigh what new features will come along with the updated model and how important they are to you.

Toyota, Mazda partner to build EVs at new $1.6 billion U.S. plant

TOKYO — Toyota and Mazda plan to build a $1.6 billion U.S. assembly plant, the two said on Friday, as part of an alliance that will also see the Japanese automakers jointly develop electric vehicle technologies. The two will take small stakes in each other as part of the tie-up: Toyota, the world's second-largest automaker by vehicle sales last year, will take a 5 percent share of Mazda, extending its dominance in Japan's auto sector. Mazda will take a 0.25 percent share of its larger rival. The plant, something of a surprise at a time of overcapacity in the U.S. market, will be a boost to U.S. President Donald Trump, who campaigned on promises to increase manufacturing and expand employment for American autoworkers. The plant will be capable of producing 300,000 vehicles a year, with production divided between the two automakers, and employ about 4,000 people. It will start operating in 2021. The electric vehicles cooperation, meanwhile, comes as the tightening of global emissions regulations prompts more automakers to develop battery powered cars, as the industry struggles with hefty research costs and intense competition from technology companies over technology like self-driving cars. As part of the agreement, Toyota and Mazda will also work together to develop in-car information technologies and automated driving functions. Toyota, Japan's biggest auto company, has been forging alliances with smaller Japanese rivals for several years, effectively engineering a loose consolidation of the Japanese auto sector. It already owns a 16.5 percent stake in Subaru, Japan's No. 6 automaker, with which it also has a development partnership. Toyota is also courting compact car maker Suzuki to cooperate on R&D and parts supply as Toyota seeks to tap its smaller rival's expertise in emerging Asian markets. A stake in Mazda may also prevent future incursions by tech companies, one analyst said. "For a technology company which lacks the expertise in making cars, Mazda could look like a very interesting acquisition. They're very good, they're not too expensive. Maybe Toyota realizes this," CLSA managing director Chris Richter said. "By buying a 5 percent stake, Toyota takes Mazda off the table rather than having it sit out there like a free agent which could someday be used against them." COROLLA PRODUCTION SHIFT Mazda stands to gain from a deal that gives the small automaker a production foothold in the United States.