#invoice

My first thought was that a constant velocity joint on the left axle exploded again. However, Mike the mechanic (not to be confused with Mike and the Mechanics) told me there was “a hole in the transmission” in the ’02 Saturn that’s been my daily driver the past few years. I spent a few days asking myself whether it made any sense putting $1,000 into a 15 year old car that’s gone on pretty much unchanged since it was first designed in the early ’90s. My second thought: What’s the next thing that’s going to break?

I started looking around for a small, inexpensive, new car, with a focus on subcompacts. I also asked my colleagues who review a lot more cars than I do for their recommendations and settled on two finalists, the Ford Fiesta and Honda Fit.

At an upcoming dealer meeting in Las Vegas next month, Toyota will ask its dealers to stop advertising cars below invoice in an attempt to help keep residual values higher and keep dealers from competing in a “race to the bottom,” Automotive News is reporting.

If accepted, Toyota would join Honda in penalizing dealers who advertise cars below invoice. According to the report, after three reported violations in one year, Honda could withhold marketing money from a dealer — which could be $400 per vehicle. It’s unclear how Toyota may penalize its dealers who don’t comply with the proposed new rule.