JIM MATEJA: Small print confusing to car buyers

Q. I'm confused by the small print that accompanies zero-percent financing advertisements. What does "$16.67 per $1,000 fi-nanced" mean? Zero percent isn't really zero percent with a charge.

- M.W.
Palatine, Ill.

A. We also spotted a zero-percent ad that noted only some cars were offered at that rate. But that notation in small print is what you would pay without zero percent.

Q. Which is the most advantageous way for me to go: trade in my 2004 Honda Accord with 97,000 miles on it now for a 2008 Ac-cord offering discount financing for five years, or wait until the 2009s come out when my 2004 Accord will be another year older and have an additional 5,000 miles on it?

My 2004 Accord runs great but if I wait to trade it in, it's going to need the 105,000-mile dealer-recommended maintenance, a timing belt and spark plugs, which will cost me around $1,200.

- D.T.
Elwood, Ill.

A. Personal opinion is that the 2008 is going to take a big hit in depreciation when it's a year older in a few months and the 2009s come out. And because the 2009 is basically unchanged from the 2008, we'd opt for the newer one.

But we checked with several knowledgeable sources who said if you need discount financing to afford a new car, buy the 2008. With the mileage on your 2004, its trade-in value will not rise regardless of when you buy a new one. And you don't know what incen-tives will be on the 2009s, though if the market continues to be soft, you'd expect something. But unless the dealer is a relative who needs the money, why spend $1,200 on a timing belt and plugs even if you do wait to trade it in?

Q. Re: the EV1: GM could have developed new chips for the brakes for a small amount of money.

- J.P.
Seguin, Texas

A. GM said another problem with EV1 is that the supplier of electronic computer sensors for the brake system stopped doing so in 1998 because volume was too low to justify the expense.

How low was volume? GM spokesman Dave Barthmuss says a waiting list of 5,000 potential buyers dropped to 50 actual pur-chasers when told the driving range and recharge time. Though 1,000 EV1s were built, only 800 were leased between 1996-2000. The 200 leftovers were cannibalized for parts to keep the 800 going.

If you know how to develop such a computer chip "for a small amount of money," you should let the auto industry in on your secret.

Write to Jim Mateja, Chicago Tribune, 435 N. Michigan Ave., 4th Floor, Chicago IL 60611, or send e-mail to transportation@tribune.com. Due to the volume of letters, only those in which the reader includes full name and hometown can be read.