One of Chevrolet's best selling cars is its subcompact Cobalt. The Cobalt XFE model offers best in class fuel savings.

For students needing a car while on campus, your choices abound. From a well used family vehicle to a late model used car, the used-car market for buyers remains strong. However, thanks to the demand for smaller cars, the compact market is overpriced. Clearly, paying $5000 for a seven year old Dodge Neon is a bit much, especially one with more than 80,000 miles on the odometer.

On the other hand, the new car market is in tatters due to the tough economy and the almost overnight shift in consumer tastes from V8 powered vehicles to almost anything with four cylinders. While the demand for smaller cars is up sharply, prices are generally not, making the purchase of a new set of wheels an excellent option for some college students.

The 2009 Chevrolet Cobalt XFE

When shopping for a new car, many students look at entry level models, knowing that these are the types of cars which they can afford and are usually the most fuel efficient. The under $15K price tag of various Scion, Ford, Honda, Toyota, Kia, Hyundai, and Chevy models makes this segment interesting, one filled with a variety of cars — some rather stripped, others fairly well equipped.

Leading the way in fuel economy in this category is the Smart Fortwo, a two seater mini minicar that gets 40 mpg on the highway. Unfortunately, the $11,750 Smart can barely hold enough gear to transport students with all of their stuff from home to college and back again. Slightly larger, and seating at least four passengers are the Hyundai Elantra, Ford Focus, Nissan Sentra, and the Chevy Cobalt to name a few. Speaking about the latter, the Cobalt XFE retails at $15,070 before incentives are included and for 2009 the model will get 26 mpg city and an excellent 37 mpg on the highway.

Your Fuel Efficient Cobalt

The Cobalt’s fuel efficiency is its strong point, thanks to low resistance tires, special gearing, and computer tweaking which, together, helps to squeeze out an extra 3 mpg highway miles for the XFE (Xtra Fuel Economy). With a cloth interior, standard air conditioning and AM/FM radio with CD player and MP3, and with a 2.2L I4 powered engine, the Cobalt comes with many of the features drivers crave. Mated to a five-speed manual transmission, the best fuel numbers are achieved with this combination.

All Cobalts meet required safety conditions including dual frontal airbags and a “good” rating for front impact. Side airbags, antilock brakes, and stability control are also available on select models. Quality for the Cobalt is average, bettered by more established models such as the Honda Civic and Toyota Corolla. GM says that they sell 200,000 Cobalts annually, making it the second most popular car in the entire GM fleet.

Shop For Incentives

Buyers looking for a good deal on a Cobalt may want to consider end of the model year specials for the 2008 Cobalt. Achieving 36 mpg on the highway, the 2008 Cobalt XFE could offer the best value when incentives are taken. Consider taking the rebate and finding your own automotive financing in order to save money.

Some colleges forbid or actively discourage students from having cars on campus, while others are tolerant and understand the needs of their future alumni. Check with your insurer before buying any car to learn what costs you’ll have to pay to keep your car at school.

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Adv. — Is your family experiencing a financial shortfall this academic year? Scholarships, grants, 529 money, and part time work may not be enough. Learn about private student loans by visiting SayStudent.com, your portal for college financial assistance. We have free tools for your download and updated information about current college financing requirements.

Tags: Chevrolet, Chevrolet Cobalt, Chevy, Chevy Cobalt, Cobalt XFE, Ford, Ford Focus, Hyundai, Kia, Nissan, Smart Fortwo, Toyota

For a number of years I shied away from recommending cars built in South Korea, recognizing that the low quality of these vehicles wasn’t worth the cheaper price for the cars.  Models from Hyundai and Kia are typically priced as much as twenty percent less than comparably equipped Japanese cars, but until recently their long term durability was an issue.

Apparently, that issue is no longer a factor.

J.D. Power & Associates, Consumer Reports, and other automotive experts have seen both Hyundai and Kia improve their quality considerably over the past several years, while maintaining their distinct pricing advantage. Even in this tough economy Kia is benefiting, seeing a sales increase for the first six months of this year over the same period in 2007, something few other manufacturers can boast of.

What I do like about Kia, particularly in an entry level vehicle such as its Rio, is that this car isn’t completely stripped even in its base edition. True, at $11,540 the base model may not be as appealing as one with an automatic transmission and air conditioning, but with $500 cash back, a 10 year/100,000 mile warranty, and six airbags standard, it is worth a look. Besides, 32 mpg on the highway is a good number, likely a lot better than what most used cars your son or daughter would consider.

What You Get

Powered by a 1.6L I4 engine paired to a five speed manual transmission, the Rio’s engine is peppy and thrifty. With the ability to carry as many as five adults (squeeze in, please) the Rio affords more interior room than the Honda Fit, while bringing savings of $2500 when choosing the Kia.

An independent front suspension featuring MacPherson struts, coil springs and a stabilizer bar combined with a semi-independent rear suspension provide good handling while the engine-speed-sensitive power rack-and-pinion steering system adds balanced control which helps to create a smooth, comfortable ride. 14 inch wheels are standard with 16 inch alloys available.

Inside, the sedan offers full cloth trim, an eight-way adjustable driver’s seat with a fold-down armrest, a rear defroster and dual 12-volt power outlets.  Numerous storage areas, a center stack tray, a front passenger luggage hook and a rear mesh seatback pocket are also included in every model. By choosing the LX trim (there are five trim levels available) an AM/FM/CD audio system, auxiliary audio input jack, rear seat adjustable headrests, and 60/40-split folding rear seats can be added.

Rio’s Roomy Interior

A spacious interior provides 92.2 square feet of passenger volume and about 12 square feet of trunk space. Push down the 60/40 split seat in the five-door version of the Rio and cargo space quadruples — a nice feature when your son or daughter has to haul stuff from home to campus and back.

Kia offers low rate financing or $500 cash back on the 2008 Rio, but you’re probably better off taking the rebate and seeking auto financing elsewhere. Use a auto loan calculator to determine the best financing deal for you.

Even with popular options added (air conditioning and automatic transmission) a nicely equipped Rio can be had for about $14,000 after rebate, but including taxes. Considering the price of many other small cars, you get one for less money and your college student’s vehicle is much more reliable than the old family sedan you thought about buying.

One final thought: the end of the model year is nearing, therefore additional deals may spring up. Do your research and you could shave off a few hundred more dollars and come away with a Kia Rio for less.

(Photos Courtesy Kia Motors America, Inc.)

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Adv. — Having a car or truck in college is nice when you consider all the runs you will need to make. It is difficult to shop, go to events, and take in other recreational events without one. But having your own car may not be in the budget, therefore consider looking for a motorbike, scooter or pedal bike as alternatives.

Tags: Hyundai, Kia Rio, Kia Rio5, South Korea