On June 25, Ford launched its "Recycle Your Ride" website. The site is an easy guide to determine if your vehicle is eligible for Cash-for-Clunkers, and which Ford family vehicles are a good fit as a replacement. So far, Ford says it's had over 250,000 potential customers fill out the short form, and surprisingly, the modest-selling Mercury Milan is in a statistical dead heat with the Ford Fusion for the top replacement vehicle chosen.

To test out the site, we chose a 1997 Ford F-150 with a 4.6-liter V8 engine. Ford's site brought up 16 vehicles eligible for the $4,500 incentive, including the Focus, Escape, Mariner, Taurus, Fusion and Milan. The picking-up-sales-steam Fusion and the underrated Milan currently account for 30% of overall selections, and Ford tells us that the public is split right down the middle on which vehicle they prefer.

While it's quite surprising that the Milan is garnering as much attention as the more popular Fusion, the real proof is in the sales data. We're guessing that the Milan won't outperform the Fusion's 19,000 June sales any time soon.

[Source: Ford]

As part of its post-bankruptcy rebirth, General Motors plans to "experiment" selling its cars on eBay. At its press conference this morning, CEO Fritz Henderson let slip to members of the media that the automaker is engaged in talks with online auction site eBay "to revolutionize how people buy cars online." According to Henderson, GM has plans to try selling its vehicles online:

"Customers will be able to bid on actual vehicles just like they do in an eBay auction, including the option of choosing a predetermined 'Buy It Now' price... we'll be testing this and other ideas with our dealers over the next few weeks, and hope to expand and build upon them in the coming months... in all cases, our goal is to make the shopping and buying process as easy as possible for GM customers - on their time and their terms. Stay tuned."

Many individual GM dealers already use the auction powerhouse to sell vehicles, so the move isn't completely uncharted territory, but it isn't immediately clear how (or if) the automaker plans to integrate its dealer body within this process. Henderson was quick to reinforce that the company's plans with eBay are just an experiment, so as the CEO says... stay tuned.

Historically speaking, Canada has gotten the blunt end of the stick when it comes to new car pricing compared to its southern neighbors. Pricing on many vehicles versus an otherwise identical U.S. counterpart has long been comparatively inflated, and America's recently passed Cash-For-Clunkers bill has left many Canadian consumers feeling even more short-changed than normal.

But help may be on the way. The Vancouver Sun reports that Jim Prentice, Canada's environmental minister, is reviewing whether the Great White North should get a Cash-For-Clunkers scrappage incentive program of its own. According to the story, Prentice has met with "a number of auto manufacturers over the past few months" in order to discuss whether the government should issue its own $3,500 incentives to junk old vehicles and purchase new ones.

Interestingly, before a decision is made, Prentice plans to analyze whether a small, existing auto salvage trade-in program in Alberta has had any effect. That program apparently gives eligible owners a comparatively modest sum – $300 – for scrapping their 1995 or older vehicles. Instead of the cash incentive, alternative awards for the current program include up to $490 toward a new bicycle or as much as a year's worth of mass transit passes.

A decision on a Cash-For-Clunkers program for Canada will likely be handed down in the next 60 days.

[Source: The Vancouver Sun | Image: Theo Heimann/Getty]

A new study by RL Polk & Co. shows that the kind of car you drive is tied to the state you live in, and whether that state is traditionally Republican or Democrat-leaning. The study shows that 36 of the 50 United States tie closely to political lines. Red states (Republican) typically buy domestic, while blue states (Democrat) typically skew import.

In states where Democrats won three of the past four elections, imports consist of as much as 60% of the market, while Republican strongholds favor domestics by up to 74%. The paradigm changes slightly in traditionally Democrat states that also produce a lot of cars and trucks. States like Wisconsin and Michigan still prefer domestic products. The three states that have been split over the past four elections also prefer domestic vehicles.

The exact reason for the phenomenon isn't clear, but a quick view of the political map shows that traditional Democrat strongholds are on the east and west coast, where imports are preferred. The center of the country traditionally favors Republicans, especially in the South. That's pickup truck country, and Ford, GM and Chrysler dominate the segment.

[Source: Washington Times | Image: Infovis.net]

Now that the so-called Cash-for-Clunkers bill is ready for President Obama's signature, attention is turning to how much of an impact the negotiated bill will actually have on U.S. car sales. There are a lot of positive stories about the bill floating around – headlines hopefully implore that the bill might "jumpstart U.S. auto sales" and claim "Has Uncle Sam got a deal for you." But will the law, with its fairly tight requirements, really stimulate sales? Some auto analysts don't think so.

Four analysts interviewed by Automotive News estimate that only 70,000 to 200,000 more vehicles will be sold because of the clunkers bill. According to the detractors, there are three main factors that will likely blunt the bill's impact:

• It's just four months long – the law will only offer cash for your clunkers from July 1 until November 1.
• While the bill requires the new vehicle to be more fuel efficient than the one you're trading in, the 18 mpg limit on the old ride (details here) doesn't encompass nearly enough vehicles.
• The economics of the law don't make a lot of sense in the real world. If you're driving an eligible car, then chances are that you can't afford to purchase a new vehicle right now – even if you can get a $4,500 federal credit on the price. More often than not, it makes greater sense to just buy a used car.
  

[Source: Automotive News (subs req'd) | Image: KB35 under CC 2.0]
Photo by KB35. Licensed under Creative Commons license 2.0.

With Congress on the verge of passing some kind of 'cash-for-clunkers' legislation, it's time to take a look at what cars are worth trading in for the scrappage credit and what models would be better to sell by other means. The good folks at Consumer Reports have come to the rescue. Obviously, a car that has a retail value greater than the corresponding rebate is not worth trading in unless you just can't be bothered to stick a For Sale sign in the window. The CR staff has examined the prices and concluded that pre-1993-94 Cadillac DeVilles, Eldorados and Sevilles are all solid candidates.

One surprise car on their list is the 2001 Lincoln LS V8. The LS was a well-regarded (if blandly styled) sedan in its time. Those looking for a good handling rear-drive alternative to a BMW 5-series would do well to consider one of these at their bargain basement used pricing, and we'd hate to see a good one sent to the crusher.

Perhaps unsurprisingly, CR's truck list is quite a bit longer than their car list, and it includes such winners as the pre-1996 Ford Aerostar and Isuzu Rodeo. Check out the whole list of clunkers-to-vouchers over at CR. Thanks to Richard for the tip!

[Source: Consumer Reports]

The Hyundai Assurance program may well go down as the most innovative and perhaps successful marketing campaign of 2009. The program was so perfect for our economic times that General Motors and Ford eventually followed suit with very similar offers. But according to The New York Times, Hyundai's marketing magic may have worn out with the South Korean automaker's newest offer – an incentive that sounds great until you dig just beneath the surface.

The new Hyundai campaign promises to pay customers during the first six vehicle payments on any model purchased before June 30. As you likely already know, the payment paradigm usually works the other way around, and the new Hyundai plan sounds like a real winner for the customer. In fact, though, the payment basically takes the place of a lump sum cash incentive that would normally be due at signing. That's right, we're talking about the repackaging of existing customer rebates. In this case, you get six small payments (on a Visa card) spread out over six months instead of one big rebate that you would traditionally receive up front. When considering the fact that the standard lump sum rebate can often be used to lower your car payments – while also taking a bite out of interest payments through the life of the loan – we'll take our rebates the old fashioned way.

[Source: The New York Times via Kicking Tires]

Consumer Reports has counted down the forty best deals on domestic new cars – those you can get from 10% to 25% below MSRP. Since CR doesn't have any Chrysler products that it feels it can recommend, there are no Pentastar products on the list, and General Motors products features but twice (the 2009 Chevrolet Silverado 1500 1LT 4X4 Crew Cab can be had for 15% below retail and the 2009 GMC Sierra 4WD Crew Cab SLT SWB for a 10% discount).

Topping the chart is the 2009 Nissan Titan SE 4X4 Crew Cab SWB, for which CR figures Nissan will slice off upwards of one fourth of the price. Otherwise, dominating the top of the list are Ford products in the 15% to 20% bracket, while the lower half is owned by "domestics" in the guise of Toyota and Honda with a smattering of Nissan and Subaru.

All of the cars on the list have been tested by CR and have good overall safety scores, including rollover results. To come up with the final discount number, the magazine included customer rebates and dealer incentives. If you're looking for any one of these cars, the negotiating tactic you're probably looking for is "hard bargain." Check out the complete list of CR's Top 40 at the link below.

[Source: Consumer Reports]

Not everyone gets car buying advice from the Autoblog Podcast (Ford can't build that many Fusions), so where do car shoppers turn for recommendations? Many potential buyers ask around among friends and acquaintances, especially those who recently purchased vehicles. AutoPacific asked 25,000 new car owners whether they would recommend their vehicle to other buyers. According to the firm's study, it takes more than just the blissful glow of new car ownership for someone to suggest that their car is the one to buy. "It takes another level of confidence to recommend it," says AutoPacific president George Peterson.

Infiniti G37 owners are a satisfied lot, with 95% of new owners suggesting the vehicle to others, giving it the top rating in AutoPacific's test. Brand-wise, Porsche's rabid fans aren't just a myth -- 91% of Porsche owners are cultishly devoted and preach the gospel of Zuffenhausen. Toyota/Lexus and Ford/Lincoln please their owners enough to snag the most cumulative awards, and we've posted the full list and press release after the jump.

[Source: AutoPacific | Image Source: jbcurio via Flickr Creative Commons]

While tanking auto sales are bad for automakers, the customers buying cars and trucks are paying less for them than any time in the past 30 years. Comerica Bank's Auto Affordability Index shows that a vehicle with a $26,000 MSRP takes the average family 21.5 weeks of median income to buy. That's 1.3 weeks less than in December of 2008, as incentives have grown by an average of $1,700 per vehicle purchase in only five months. Lower interest rates and deep discounts are being assisted by looser credit requirements as well. In April, industry incentives averaged out to $2,931 per vehicle, and domestics were at $3,412.

The lower price of cars and trucks hasn't resulted in higher vehicle sales, though, so analysts expect the downward pricing trend to continue. Chrysler, for example, is beginning to offer incentives of up to $6,000 per vehicle. If GM enters chapter 11 bankruptcy on June 1, it's possible that the Detroit-based automaker could offer similarly deep discounts. Again, bad news for automakers, but not necessarily so for car buyers.

[Source: The Detroit News]