Cars for buyers who want the best - 1993 luxury cars - Special Report - Buyers Guide

Nation's Business, Nov, 1992 by Julie Candler

Although a luxury ear confers the look of success upon its owner, it can provide much more. Luxury cars, most of which are midsize and larger, generally offer more crash protection and more options than those in the lower price categories.

Another advantage of topof-the-line cars is that they usually are the first to incorporate safety improvements. Many now offer speed-sensitive steering, which requires somewhat firmer driver control at higher speeds than at lower ones. Higher-priced cars were the first to add shift locks, which require depression of the brake pedal to move the shift lever out of "park."

Nearly all luxury models have air bags for both the driver and the front-seat passenger. Most come with antilock braking systems, which improve driver control by braking intermittently when they sense that wheels are locking.

As far as options are concerned, a luxury-car purchaser doesn't have to decide which to take and which to forgo for economy reasons. Virtually all options are standard equipment. Moreover, the makers of luxury brands keep coming up with new features.

As important as safety, appearance, and convenience features may be, however, surveys show that car buyers choose luxury models mainly for their quality. And in survey after survey, makes such as Cadillac, Infiniti, Lexus, Lincoln, and Mercedes dominate the lists of cars scoring above average for dependability.

In addition, if one of these superior works of automotive art should break down, the driver may be able to call toll-free for help from the manufacturer's roadside-assistance program-operated through a motor club. If the problem can't be solved via telephone, the auto maker will have a service truck on the scene within about 20 minutes.

Moreover, many luxury-car makers offer loaner cars for scheduled service appointments.

Although a luxury vehicle represents a large investment, it can retain so much of its value that resale brings a much greater return than a less-expensive vehicle.

You can justify indulging yourself with luxury by choosing one of the attractive lease plans offered by most makers-even Rolls-Royce.

Most luxury plans are based on low interest rates, and they guarantee a value at the end of the lease that usually exceeds the car's resale value when that time comes. Car companies absorb the difference, knowing you will want another car when the lease expires and may choose their latest model.

Mercedes-Benz, for example, has a Win-Win lease program for its expensive S-class (which includes the 300S, 300SD, and 4005AE). The 36 monthly lease payments total up to thousands less than the sticker price. They are, in effect, price cuts.

Cadillac's DeVille ($31,740) is available on a lease that calls for a $1,500 down payment and a $498 monthly payment for 24 months.

Another advantage in leasing is that federal taxes on the purchase can be spread over the life of the agreement.

When a car is purchased, taxes must be paid at the time of delivery.

Many of the higher-priced luxury cars are imports whose prices reflect the costs of making adjustments to the vehicles so that they comply with U.S. safety and exhaust-emissions standards. Such requirements have influenced some importers to withdraw vehicles from the U.S. market.

DeTomaso Industries of Italy, for example, made none of its 1991 or 1992 Maseratis available in the U.S. market because of problems meeting the requirements for safety restraints. The only model available from the company's 20 U.S. dealers is the Spyder convertible, which costs over $50,000.

The tax on vehicles that do not meet federal fuel-economy standards can reach $4,000 or more on a large, heavy vehicle.

In addition, luxury cars are subject to a federal luxury tax. This tax is 10 percent on the amount of their price exceeding $30,000. The luxury tax on a $60,000 car would be $3,000, for example; on a $160,000 car, it would be $13,000.

A car becomes a luxury instead of basic transportation at about $35,000, says James Dunne, automotive editor of Popular' Mechanics magazine. Many automotive writers agree. So, our look at what's new in this richly appointed market of luxury cars focuses first on those with base prices of $35,000 and up. We're also including a category of automobiles considered to be "near luxury," at $25,000 to $35,000.

The cars from 19 manufacturers listed alphabetically in these two categories were chosen for their size--those roomy enough for a family on a vacation trip, for example. This list does not include a number of specialty luxury cars--including small, big-ticket, high-performance sports cars such as the Chevrolet Corvette coupe ($34,595), Acura NSX ($65,000), or the new Dodge Viper ($50,000).

Unless specified otherwise, base prices are for 1992 models. Many manufacturers' 1993 prices were unavailable when this article was written.

Over $35,000

Audi. The new Audi $4 is a highperformance, high-tech sports sedan derived from the firm's 100-series sedan line. With a 227-horsepower, turbocharged, 2.2-liter, five-cylinder engine and a five-speed manual transmission, the $4's Quattro system delivers power full time to all four wheels and does an impressive 0 to 60 miles per hour in 6.6 seconds.