Recession-Proof Cars

While we’re all griping about yet another handout to the least-deserving, worst-performing businesses in this country, there’s something especially galling about this one to many of us who cover the auto biz. See, while we often get accused of rooting against the domestics, that’s a downright lie. The problem isn’t that American carmakers can’t build great cars. They can. That’s just the point. They can and they do: the Ford F-150, Chevy Silverado, and Dodge Ram are all superior to their Japanese competition. But then look at what cars are actually selling in this economy, and you see examples like the Honda Fit. Why do we have to rely on Honda to give us a successful small car like the Fit or the Civic, although Ford can sell the Focus, the Ka, and the Fiesta in Europe—models that are so much better than the domestic versions? We’ll get fuel-efficient economy cars, if Ford lives long enough to bring them to market. Those European Fords are fine examples of management understanding how to make great cars—but not seeing how to get them to market faster than their competition.

But there are some good deals out there in this recession; cars that are worth the price and will hold their value. And in spite of our exasperation, we don’t advise buyers to to ignore the American brands. Our outlook is more nuanced than that, although unfortunately for the Wee Three’s sake, it’s still not the story they want to read. Here’s the breakdown, and the logic behind it.

Gold Standards: Brand Equity, Reliability, Resale

Gold standards are just what they sound like: Cars in high demand now and likely to be so in the future. That means that although a car is never a wise investment (unless you have the means to mothball a Ferrari for 30 years), the depreciation hit won’t be as dire as it would be with a less beloved model. Depreciation also correlates to reliability, so these are also cars seen as more reliable (according to Consumer Reports.com). There’s another factor at work; these are cars from makers that aren’t in dire straits. Face it: the residual value of a marque plummets when a carmaker dies (Daewoo anyone?).

Honda

Honda CR-V

$21,095

The CR-V is a standout in an increasingly competitive segment. The Saturn Vue is a great example of a new sleeper in midsize crossover category—but the Honda is just a hair better. Mostly this comes down to slightly smoother feel from the drivetrain (comparing four-cylinder engines in both), a more tidily laid out cockpit, and slightly better fuel economy. Both the Honda and Saturn are fun to drive, but the CR-V has shown more consistent reliability over the years. Then again, you can get two different hybrid versions of the Saturn—not an option with the Honda.

BMW

Mini Cooper

$18,550

The Mini makes this list because it gets very good fuel economy (28/37), has a huge following (Mini dealers have pretty much failed to create a sustainable certified-used program because Mini owners are so reluctant to sell their cars), and Kelley Blue Book rates the residual value of the Mini the highest on its list for the past five years. It’s of course a blast to drive, and has a more useful cabin than you’d imagine (though not for anyone over the age of about seven in the backseat). It is not, however, tops in reliability, with more issues in that regard than, say, the similar size Scion Xa/Xd. Of course neither of those cars are as much fun to drive. One tip: While earlier-year base model Coopers were a little too gutless, the latter cars have plenty of spunk. If you’re defaulting to the Cooper S, drive the base car first. You might be surprised.

BMW

BMW 328i

$33,400

BMW’s 3 series is the backbone of the company. It’s been that way for years and will continue to be that way even as BMW grows. And year after year, BMW just plain kills it with this car. Every year it gets better, every year it’s more fun, and every year it’s probably the most enjoyable car for the money you can own. The transmission is flexible, the engine sings a sports car note, the handling is playful and agile without being harsh—it’s one of those cars that’s so much fun you want to head around the block again before heading home. Mind you, the 3-series isn’t the cheapest car to maintain in its class, but in terms of satisfaction, if you’re a driver, not just someone who thinks of his car as an appliance (if so, you’re not a likely BMW buyer no matter what), this is probably the best car on the planet for you.

Brands Within Brands

Even if you’re pessimistic enough to believe that some member of the Detroit Three will be allowed to fail, I’m betting that the following iconic brands would soldier on under any new ownership. The reason is that these vehicles have become icons. In middling times they sell well and in great times they sell like crazy. And that means you could buy one today and bet fairly easily that the brands or at least these models will be supported in the future.

GM

Chevy Corvette

$46,100

While limited-edition cars like the Z06 and ZR1 are mighty impressive, the base Corvette is about as great a sports car as you can find for the money. You can’t approach a BMW M3 for $46,000, and while a Porsche Boxster goes for similar dough, that car simply can’t keep up with the bottom-rung ‘Vette. True, the WRX STi and Mitsubishi Evo are also great sports cars for low cash outlay, but in truth those cars appeal to an entirely different demographic. Meanwhile, unlike the Mustang GT500, the ‘Vette is a fully modern car—the handling is nuanced and comfortably responsive right up to race-track speeds, and the transmission is smooth enough for daily use. The ‘Vette isn’t everyone’s cup of bottled lightning, but in terms of dollars for agility and all-out muscle, nothing else competes.

Chrysler

Dodge Ram 1500

$21,270

Dodge changed its Ram this year and, like Ford, has been slow to bring it to market. The reason of course is that trucks aren’t selling, but like the F-150 the Dodge promises to be a much-improved work steed, with actual coil springs rather than leaf springs out back. We’ve had leaf springs since the horse-and-buggy days, so it’s about time someone took the bold move to offer a pickup that rides like a car, even without 1,000 lbs. in the bed. Besides a highly acclaimed ride, the new Ram is slick inside, and the 5.7-liter Hemi V-8 is now boosted to 390 hp. That’s way more snort than the F-150 delivers at this price and will probably be a top selling point for Dodge.

Sleepers: Bang-for-the-Buck Slam Dunks

Sometimes you have to swim against the current. These cars don’t get nearly the credit they deserve for being excellent but, quietly, are developing a following.

GM

Chevy Malibu

$21,605

The Chevy Malibu, according to Consumer Reports, has been a consistently reliable car, especially when equipped with the fuel sipping (22/33) four-cylinder engine. What’s more, it’s a thoroughly enjoyable car to drive. It’s very room inside (“American-sized” is the way one friend put it), handles quite well, and is agile as well as stable under all conditions. Compared with Ford’s Five Hundred, er, Taurus, this car is playing in another league—the one pioneered by the likes of the Accord and Camry. And anyone shopping in that league really must cross-shop the Malibu. It’s that good.

Volkswagen

Audi A4 2.0T Quattro

$32,700

The latest version of the Audi A4 is at last bigger inside, meaning that both front- and rear-seat passengers enjoy more legroom and head room. The A4 also delivers 23 combined fuel economy (a bit better than BMW’s AWD 328xi) and it’s also about $4,000 less expensive than that BMW. And while this reviewer tends to be partial to manual gearboxes, the Audi’s smooth six-speed is a delight, and has a decent manual option, which is very handy for grabbing a passing gear. Also a joy: This latest Audi’s suspension and steering are sporty without being punishing. In all, the A4 is nudging up very close to BMW 3-series territory, and given that it’s now roomier, in some ways it’s already better.