2006 Hyundai Sonata on 2040-cars

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Pre-owned deal alert: Hyundai Genesis

Hyundai used to make really crappy cars: horrible to drive, horrible build quality, and unreliable. Any sales person that sold Hyundais in the early 2000s can regale you with a story that goes like this: "I was delivering a brand new Hyundai to a customer and _____________ broke, but I told the customer _______________ and the customer brought the car home anyway. Selling those pieces of crap required true salesmanship. Hyundai knew its products would not sell without a competitive edge, so it offered one of the best warranties in America: 5 years/60,000 miles bumper to bumper and 10 year/100,000 miles on the powertrain. At the time most consumers viewed that warranty as a necessity; they felt they would not buy a Hyundai without the best warranty in America. All of that changed in 2008 with the debut of the Hyundai Genesis sedan. Everyone thought a luxurious Hyundai was impossible until they saw and drove the vehicle. The design was subdued yet elegant, the interior was not world-class but was above average, the ride was comfortable and quiet, and its steering was acceptable. The Genesis sedan is powered by a 4.6-liter, 375-horsepower V8 or a 3.8-liter, 290-horsepower V6. Both of these engines were smooth and propelled the car to 60 in under six seconds. The Genesis was not better than a Lexus or a Mercedes. But it was a great value: The starting price was $34,000 for a V6 base and topped out well under $50,000 if you got the V8 and tech package. Even so, Hyundai knew people might not plunk down $40,000 for a Hyundai, so they leased them out at really aggressive numbers. A no-money-down lease on the Genesis was around $450 a month during the darkest days of the recession. I was told the dealers were leasing them out for around $350 a month. Which brings us to today, when the market is flooded with tons of lease returns. A used Hyundai Genesis is an even better value. There are a good number of 2013 models with under 45,000 miles on the odometer for under $20,000; the average price is at $18,500. Assuming the vehicle was leased in 2013, you would still get at least two years and 20k miles on the bumper-to-bumper and at least five years of powertrain warranty with the car. Most of these lease return models come with power everything, leather, sunroof, upgraded sound system – most of what you expect in a luxury car. Some are more aggressively priced than others.

Hyundai's electric car strategy takes shape under the radar

Green car fans are frothing over the Tesla Model 3. The Chevy Bolt may turn out to be the better car, and it will be available sooner. But don't overlook another electric car that's also due next year: the Hyundai Ioniq. With far less attention, Hyundai is launching an EV that is expected to be competitively priced and will spearhead the Ioniq lineup, which also has hybrid and plug-in hybrid versions. They share the same platform and look similar, but the Ioniq EV could prove to be a game-changer for Hyundai when it arrives at the end of the year, bringing new customers and casting the company as one with proficiency in the electric arena. Built in South Korea, the Ioniq line will be available at every Hyundai dealership that wants to sell the cars, already giving it a leg up on Teslas that often have long waiting periods for buyers. With a range of 124 miles on a single charge, it won't compete with the Model 3, which will travel at least 215 miles on a charge, or the Bolt, which has a range of 238 miles. Rather, it will face off against humbler products like the Nissan Leaf (107 miles) and the Volkswagen E-Golf (83 miles). Hyundai has not announced pricing, but is mindful the Ioniq trails Chevy and Tesla in range. An executive also indicated it could be working on an Ioniq with a longer distance capability, but declined to discuss specifics. Hyundai argues its found a sweet spot with the Ioniq EV, whose range is well within the distance most Americans drive in a day. It can recharge in about four hours and 25 minutes, which is faster than the six-hour charge time for the Leaf but slightly longer than the four-hour E-Golf. In quick charge mode, the Ioniq can juice up to 80 percent in 23 minutes. Critically, Hyundai is also offering a lifetime warranty on all of its hybrid and electric battery packs (it has since 2012), which could sway consumers still wary of the technology. It's a lot of numbers, and Hyundai will need considerable marketing muscle to make buyers consider Ioniqs in the face of a growing field of electrified competitors. But it's part of a broader play to reach an audience of younger consumers, who expect electrification to be baked into their cars. Millennials will account for 40 percent of new car purchases by 2020, and Hyundai says the generation is more likely to consider alternative powertrains than older ones.

EPA says it will more closely monitor fuel economy claims from automakers

The unintended acceleration brouhaha at Toyota led to the National Highway Transportation Safety Administration tightening the vise on recall procedures. Likewise, the fuel economy kerfuffle that blew up with Hyundai and Kia's admission of overstated fuel mileage claims could lead to the Environmental Protection Agency policing automaker assertions by performing more audits.
At least, that's what a senior engineer with the government agency said while in Michigan giving a talk, according to a report in Automotive News. What that actually means, however, is still in question. Just ten to 15 percent of new vehicles - something like 150 to 200 cars per year - are rested by the EPA to verify automaker numbers. The EPA's own tests include a "fudge factor" to adjust lab mileage for real-world mileage, and the agency still relies on automakers to submit data for tests that it doesn't have the facilities to perform. How much more auditing can the EPA really expect to do, or perhaps a more relevant question would be how much more accurate could the EPA's audits become?
The price of gasoline, the psychological importance of 40 miles per gallon to a frugal car buyer, an automaker wanting to further justify the price premium of a hybrid, all of these things contribute to fuel economy numbers that insist on creeping upward. Perhaps the senior engineer encapsulated the whole situation best when he said, "Everybody wants a label that tells you exactly what you're going to get, but obviously that's not possible. A good general rule of thumb is that real-world fuel economy is about 20 percent lower than the lab numbers." If the lesson isn't exactly 'buyer beware,' it's at least 'buyer be wary.'