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Sep 02, 2009 -- Hyundai continues slow but steady rise

Hyundai entered the U.S. market with the XL in 1986. But quality control issues early on got out of hand and the company made a bad first impression on car buyers.

At the time, Hyundai was by far the cheapest car in America with an MSRP of $4,995. But a car's got to be reliable too, right?

Poor Hyundai has now spent a full generation trying to overcome that initial impression. They never had the cachet of a Honda or a Toyota. But Toyota has endured massive losses and is closing a U.S. assembly plant for the first time ever.

Looks like Hyundai is having the last laugh now. Their 10-year warranty and unemployment coverage have really boosted the company's profile. Market share is up by a third in a year, according to The Washington Post.

Hyundai is a great example of where we're headed in this country. Many of their cars are made in the USA despite the foreign nameplate.

Meanwhile, on the affordability front, China is set to sell cars stateside beginning most likely in 2010. You can expect ultra-affordability, certainly below $10,000, but possibly as low as $7,995 in Clark's estimation! And Warren Buffett is investing in an electric car company in China that's also eyeing the U.S. market.

So whether you want a traditional gas engine or an electric car, more affordability is coming down the road.

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

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What others are saying

  • Consider this
    Learned a lot about vehicles working in the used auto parts industry aka wrecking yards, salvage yards, etc.

    "American" cars can be cheaper in the long run.

    The mid- to full-sized vehicles may last longer on rougher roads and areas where salt is used on winter roads.

    For vehicles kept for the long-term or if buying an older used car parts for GMC (Chevy, Buick, etc) TEND to be least expensive (exceptions always exist) Ford is next cheapest followed by Chrysler.

    Toyota, Honda, etc. etc. TEND to have higher parts costs and, over time, availability can be an issue.

    On the east and west coasts parts are more readily availablle while in the middle of the USA (fly-over country) The Big Three GMC/Ford/Chrysler are almost always the easiest and fastest parts to get ahold of.

    Used is the way to go for most folks and a well-maintained USA sourced car MAY hold many benefits.

    Sure, Toyota and Honda have great reputations but there may be a financial cost to buy that reputation.

    After many years of swearing not at but, by, Toyota and Hinda I learned from selling used parts of all types to repair shops that there can be benefits to buying a "traditional" "American" car.

    The quotes are for the exceptions such as the Chevy Aveo that is actually a Korean car and one I would never buy.

    Some Chevys and Fords are built in Canada or Mexico and use parts built overseas. But, the engineering is by Americans for American driving habits and locations.

    Many of the "foreign" cars, even though built in the USA, such as many Toyotas and Hondas, are not quite as rugged with their suspensions, etc. They will do quite well where the roads tend to be in better condition and salt is either not or minimally used on winter roads.

    There are many other considerations. Research the Web. Get different opinions and suggestions.

    For those seeking frugal transportation do not look only at those highly-praised "foreign" vehicles. The "American" vehicle may actually be the best for you, especially if buying used.
  • Carl didn't say "commie car"
    Dear Realist, Carl was only commenting on Anonymous' comment, he was on the same side as you....now that is funny....good grief ....
  • Chinese cars
    I gotta laugh at the "Commie Car" comments by Carl. Hey Carl, how is that so different from the"Commie" TV you watch? Or how about the "Commie" computer you posted your comment with? In case you hadn't noticed, lots of things (keeping it simple for him) are made in China now!

    So go wrap yourself in your American Flag blanket (probably made in China) and shoot off a few rounds in your backyard and feel good about being that true red blooded American that you are!
  • Can't wait for an all battery car
    I don't recall th e excel going for $4,995. I purchased one in 2007 and seem to recall paying 7k. Even the smaller model was not that cheap. Unless of course it was stripped of AC.

    I hope that that electric car is a good price. I can't stand these car companies jacking up the cost of these little cars.
  • I can read, can you?
    Hyundai is a Korean company, so your China remark is just plain stupid. Perhaps it's you who need to read a bit more, and this time please try to learn something.
  • Learn How to Read Carl
    China is a communist country. Read first, type second, use brain.
  • Get your facts straight
    Commie cars? Hyundai's design studio is located in California, and most of their cars are built in Montgomery, Alabama. Compare this with Chevy, Ford, and Chrysler, where a big chunk of their "domestic" production now comes from Mexico.
  • Hyundai
    It was the Excel, not the XL.
  • Bring em on
    I welcome all newcombers to the market, especially firms that are years ahead on providing electric cars for an affordable price (not the volt at $40K) Too long we have waited for our domestic producers to be on the cutting edge, but all we get is overprice gas vehicles now owned by the taxpayers!
  • Awesome! Commie cars in America! Bring 'em on.
  • Look out Honda
    After owning Hondas for 20 years, we bought our first Hyundai (Santa Fe AWD) in March. It is a fine car and beats the pants off of the Honda Element we looked at. I was curious about the company and was amazed at the rags to riches story of its founder, Chung Ju-yung. What a truly inspiring human being!
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