A shift in expectations of what an entry-level car can be

Introduction

2007 Nissan Versa

Nissan Versa — 2007 First Drive: Over the past few years, consumers have become more interested in vehicle affordability and efficiency. High gas prices, escalating unrest in the Middle East, and a hurricane-damaged domestic infrastructure are a few of the issues prompting many to shop in the entry-level segment. Other concerns include consumer debt reaching an all-time high, stagnant wage growth, and increasing evidence of global warming whether it’s caused by man-made activities or not. Combined, these realities are puncturing American ideals about how to live life, and small cars are back in vogue.

Times have changed, however. Whereas not so long ago buying cheap and small meant you got cheap and small, today it doesn’t necessarily mean either. Former entry-level cars such as the Honda Civic, Nissan Sentra and Toyota Corolla have grown in size, and no longer truly represent the compact class. Plus, performance-tuned models of each have also been developed, and, while geared for the small-budgeted enthusiast, these models sacrifice economy for horsepower. These developments have pushed entry-level price tags to all-time highs, leaving few models in the under-$15,000 class to choose from.

Fortunately though, Honda, Nissan, and Toyota aren’t neglecting the demand for entry-level compacts, which currently represents nearly 2 million units, or 11 percent of total U.S. vehicle sales. For 2007, the Honda Fit, Nissan Versa, and Toyota Yaris are poised to capture a significant chunk of buyers looking to go small. Among this new crop of compacts, the all-new 2007 Nissan Versa is worth a closer look, and you can check it out for yourself in five-door hatchback form this July, and in four-door sedan configuration in January of 2007. Nissan describes the Versa as a “plus-sized model at the upper end of the subcompact class,” but it clearly has the interior volume that you would expect in a larger vehicle.

Exact pricing has not been announced, although Nissan marketers report the Versa lineup will start at $12,000 excluding destination, likely as a sedan with the base manual transmission. With EPA fuel economy ratings up to 30 mpg city and 36 mpg highway, the attractively-designed Versa delivers solid power with class-leading horsepower and torque ratings, a choice between three transmissions, comfortable accommodations with best-in-class interior space, and high-quality execution in a package that is both affordable and efficient.

The 2007 Nissan Versa arrives amid a flood of new entry-level cars from a wide range of competitors. Although impressive, prices at $12,000 will not leave the new Versa unchallenged in the market: credible alternatives include the Honda Fit, Ford Focus ZX5, Kia Rio5, and Toyota Yaris. Nevertheless, Nissan expects the five-passenger Versa to deliver strong sales as 16 to 20 million Echo Boomers (the off-spring of Baby Boomers) reach driving age between now and 2010, but also forecasts that this segment will broaden its appeal to a wider range of buyers. We expect that the Versa’s size, power, price, fuel economy, quality and long list of standard amenities including side-impact and side curtain airbags will bring a host of customers who will find that buying small can reap big rewards.

© 2007 Autobytel Inc. All rights reserved.

Best bets to become best buys, this year and beyond

Introduction

In the end, it all comes down to value. That nebulous floaty-thing of a word that means a combination of everything good, value is what most people go for when it comes time to buy a new car. Yes, there is a small sliver of the market out there that buys more on heart and horsepower than value. But they’re the guys who still have car photos on their bedroom doors, so we’ll just put them to the side for now. For the rest of us, those who buy cars to drive to work and home and to the store, it’s important to find the best combination of style, features, price and warranty. And so, from a practical perspective, the most important auto show vehicle debuts this year are the cars and trucks that will provide the most value. There’s that word again – value. Truth is that the value of a vehicle can’t truly be defined until it’s been thoroughly flogged. Until, then, however, it’s possible to make a pretty good guess based on price, features, style and the automaker’s reputation for reliability and dependability. With these criteria in mind, here’s a look at the seven best buys from this year’s Detroit and Los Angeles Auto Shows:

1. Hyundai Sonata
2. VW Jetta
3. Audi A3
4. Porsche Boxster
5. Honda Ridgeline
6. Mitsubishi Raider
7. Toyota Avalon

Note the lack of domestic vehicles on this list. In analyzing the list of debuts, the Ford Fusion was a contender, as Ford’s new mid-size is based on a proven vehicle platform – the Mazda 6 – and is priced at around $18,000. General Motor’s Saturn SKY, a concept at the Detroit Show but a production model soon enough, was also a contender based on its magnificent appearance and potential. It’s smart to take a wait and see approach to these vehicles.