April, 2008

Made in America: 05 Altima

2005 Nissan Altima Used Car Review

My youngest son just graduated college and got a job.

That means both he and I are looking for our next ride.

After some scouting we settled on researching the third-generation "L31" Altima built in 2002-2006.

Lots of '05 Altimas are appearing on the used market, either coming off lease or getting traded, in 2008.

In the recession of 2008, while the average retail new-vehicle price exceeds $30,000, the used car market is actually hotter than new. Many '05-08 vehicles are offered at losses as record numbers of mortgages are in arrears.

What a great time for late model pre-owned car shopping.

The Anti-Camry

Midsize 4-door sedans are the core of the U.S. car market. This segment is dominated by conservative and conformist Toyota Camry and Honda Accord, quality leaders without standout character. Yawn.......

Altima was introduced in 1993 as a small plain 4-cylinder sedan.

In the subsequent 15 years, over 3 million Altimas have been built and sold in the US. The car was never a real challenge to the leaders.

By the late 1990s, Nissan had run into serious financial trouble.

Trapped in the mafia-like "Keiretsu" Japanese business culture, the company was bleeding cash, mostly to suppliers sponsored by banking and other unseen financial interests.

Carlos Ghosn took over as CEO when Renault bought in, championing his "Nissan Revival Plan."

The plan focused on cost cutting in the supply chain.

As a result of the 1999 supply chain shake-down, third party suppliers cut quality aggressively, often switching sources and using inferior components.

Many buyers may not realize the extent to which modern cars are "assembled," meaning built of outsourced components.

Thousands of 2005 Altima components - switches, solenoids, relays, sensors, screws, moldings, glass, paint, computer controller chips, alternators, radios, CD players, axles, bearings, springs, struts, shocks, tires, and many more - are subject to an ongoing struggle between carmakers and their suppliers.

Outsourcing is a way for bigger players to shift costs and downside risks to smaller players. Suppliers will fight back, substituting Chinese plastic whenever they can.

The revival plan saved Nissan for the short term, but costs were transferred into the future and shifted to buyers of the company's reduced quality products.

Mr. Ghosn correctly perceived that Accord and Camry were vulnerable to a Chrysler-style end run - a sporty sedan that would attract buyers in the youth and enthusiast demographics.

Chevy was sitting on an aging Malibu that was likely to be upgraded to a "me-too" Camry/Accord look-alike.

In 2001, Altima was selling just 150,000 units while the Toyota and Honda sedans did around half a million each.

So the 3rd generation Altima, the backbone of the revitalized product line, needed personality to stand out in the crowd.

The resulting car is the sportiest of the mid-size sedans, distinctly stylish and quick.

Altima for 2005 has the long-hood-short-deck masculine appearance that made the 1936 Cord and 1965 Mustang big hits. Put the wheels out on the corners, stretch the wheelbase, and add a snappy V6 - 2005 Altima won't get mistaken for a Camry.

V6 Altimas have impressive acceleration and BMW-wannabe handling despite some torque-steer. The car also has room for a family, and a generous trunk.

The 2002 rebirth of Altima represented a high tide mark for the Renault-Nissan turnaround plan, Mr. Ghosn's bold risk paid off.

Altima earned the 2002 North American Car of the Year award.

By the 2004 model year, incentives to $1,500 were needed to move Altimas. So 2005 got a face-lift and a redone interior, addressing the design's weak areas. Nissan also launched the 2005 Altima early, in February 2004.

2005 sales exceeded 250,000 vehicles, making the sporty Nissans the 4th best-selling car in America. This satisfies one rule of used car buying - "there should be abundant supply."

But despite Nissan's brilliant comeback, flaws in the turnaround plan, and in the Altima itself, became evident by 2005.

Made in America

2005 Altimas have a large number of quality issues.

'05 Altimas averaged 4.5 out of 5 stars at Kelley Blue Book (KBB), based on 393 owner reviews.

J.D. Power gave the '05 a Overall Quality - Mechanical rating of only 3.5 stars.

When you read hundreds of user reviews of this car, there is an obvious dichotomy. While most owners are thrilled with their Altimas, a sizable minority of 2005s have had repetitive quality issues.

One key to this, especially relevant to 2005 models, lies in a little known fact.

Altimas are built solely in the United States, (not Japan) at two different Nissan assembly plants: Nissan's Smyrna, (Nashville) Tennessee plant, and a new facility at Canton, Mississippi.

Smyrna was Nissan's first stateside facility, constructing Altimas since 1992, and the home of much engineering and worker expertise.

By 2003 Smyrna was working overtime to meet U.S. consumer demand and support growing export markets. Special Altima models with beefed up hot weather capability are popular in the middle east.

Nissan-Smyrna is recognized for efficiency, averaging 15.74 labor hours per Altima in 2002.

For Nissan's 2004 calendar year 219,750 Altimas were built at the Smyrna plant.

A new Nissan factory, then under construction in Canton, was hastily expanded to add Altima production.

Nissan bet heavily on an accelerated start-up schedule for Canton, located in a sparsely populated rural county. The resulting workforce has been euphemistically labeled "inexperienced."

A big part of the Canton strategy involved integrating parts suppliers into a just-in-time lean-manufacturing model, requiring inventory flexibility many could not provide.

The result was a set of inferior products, panned by critics and "not recommended" at Consumer Reports.

The first Mississippi-built 2005 Altima rolled off the line on June 14, 2004, followed by another 59,891 Altimas for the '05 model year. Those early Canton-built Altimas are not recommended at texas-cars-and-dealerships.com.

That leaves us about 195,000 2006 Altimas to choose from.

So how do I find where a Nissan was built?

By looking at the car's vehicle Identification Number (VIN).

The 11th position of the VIN is the plant code, for an Altima, it will either be a C or an N.

C is the code for Smyrna, while N means the car was made in Canton.

1N4AL11D45N427975 - 2005 Altima, built in Canton

1N4AL11D35C100138 - 2005 Altima, built in Smyrna

There is a sticker between the front and rear doors on the B pillar which displays the VIN, and a plate on the dash viewable through the front window.

Narrowing the Choices

Altima for '05 was built in five trims; 2.5 (4-cylinder), 2.5 S, 2.5 SL, 3.5 (V6) SE, and 3.5 SL.

The majority of used Altimas available are 2.5S models with the four-cylinder engine and automatic.

While the least expensive Altima had a MSRP under $20K, the V6 powered and optioned out versions could approach thirty thousand bucks.

With the typical 3-year residual around 47%, as of 05/2008 used 2005s start around $10,000 in the plain 2.5 trim, with some asking prices as high as $18K for the 3.5 SL.

For me, this will present an additional narrowing of choice, due to the builder's strategy of shorting features that should be standard - side curtain airbags and ABS brakes - on entry level Altimas. Shopping for a bargain, I will be forced to seek higher priced trims to get these essential features.

Echoing a pattern set by Toyota (not Honda), Nissan cuts costs by neglecting safety features on models marketed to the young and naive.

2005 NHTSA Crash-Tests gave Altima 5 stars for frontal impacts, but only 3 stars for side impacts, front and rear.

Front torso side airbags and side curtain side airbags are "available" as an $800 option, on all models other than the base 2.5.

In practice, few Altimas of any trim were built with optional airbags. Frustrated buyers who ordered safety options reported delays of weeks before delivery.

The majority of side-impact fatalities are caused by head injuries. In my life on the highway, I have seen hundreds of fatal wrecks, and know the value of safety equipment.

Look at a few side crash test videos on youtube.com, with and without side bags, and you'll insist on them in your next car.

Anti-lock brakes (ABS)? Same drill, ABS is not standard on the 2.5 Altma, few were delivered, especially manual transmission models.

Side airbags and anti-lock brakes should be standard equipment, but every manufacturer knows the young buyer prefers color-changing lighted cup holders.

Well, that further narrowed my list of potential Altimas to select from.

What else could go wrong?

Altima Engines

Altimas have two motor options nestled in a front wheel drive 110 inch wheelbase chassis.

Power rack-and-pinion steering and aluminum multi-link independent rear suspension provide class leading handling to match the sleek styling.

Both engines are modern all aluminum alloy designs with dual overhead cams, four valves per cylinder, continuously-variable valve timing, and electronic throttles.

But the powertrain options yield another clue to the dual nature of owner experiences.

VQ35DE V6 Engine

VQ35DE 3.5-liter V-6 engines are found in Nissan's 350Z, Maxima, Infiniti G35, and Altima. Altima's V6 is one of the world's best engines, putting out 250 hp in the 2005 version.

3.5 versions receive more enthusiastic owner feedback, but represent a minority of Altimas delivered in the extended 2005 model year.

QR25DE 4-cylinder Engine

Nissan's QE25DE motor is yet another illustration of the engineering crisis in the car industry. As government fuel economy/emissions standards escalate and consumer performance expectations remain high, engine designers are trapped by contradictory imperatives.

Chrysler, Toyota, VW, Audi, and Saab all designed modern engines prone to oil sludging. Ford's modular truck engines spit out spark plugs. Nissan does not suffer alone.

Nissan's 175 hp 2.5-liter four-cylinder engine pulled well when new, but a sizable number of owners noticed performance declines, disappointing fuel economy, excessive oil consumption, and noise/vibration. Numerous early failures were reported.

This engine is plagued by flaws in several aspects: design, assembly, and field support.

1. A pre-catalyst screen in the exhaust train can disintegrate. Then vacuum during off-throttle sucks back debris, which fouls piston rings, scoring cylinder walls and increasing oil and fuel consumption (and reducing performance). This problem is worse with aggressive driving, as it is caused by unburnt fuel - increased by abrupt throttle changes - combusting on the precat screen.

   While there has been a recall, the repair procedure has not always been effective - some owners report precat failure after the repair.

   The first thing "tuners" do is install an aftermarket header that eliminates the precat.

   Often first owners were shocked to discover their engine only had a quart or two of oil in it after changing lubricant regularly on 3,000 mile intervals. Most mechanically inclined owners will immediately top oil and sell/trade when they see this.

2. The Power Valve is a series of four butterfly plates in the QR25DE's intake manifold. These airflow regulators are secured by a pair of screws, which have developed a tendency to come loose. The screws and/or plates can then be ingested by the engine, causing problems from power loss to catastrophic failure.

   The remedy involves removal of the intake manifold and application of a cementing agent (Loctite, ect) to hold the screws. Some have added metal screens to the intake to catch the loose parts, Yikes!

   Altimas and Sentras with the four continued to exhibit problems into the 2006 model year even though the loose butterfly screws were evident in 2002.

3. Cheap plastic Crankshaft Position (CKP) Sensors have produced nightmare scenarios for owners of 2.5 Altimas and dealer service personnel. Intermittent faults resulted in scary stalls in freeway traffic and notorious unreliability. This behavior was often difficult to replicate in the shop - the perfect recipe for quality reputation destruction.

   NHTSA and Nissan eventually issued a large recall, but the evidence of a series of quality gaffes was indisputable.

   New metal crank sensors corrected the fault, but how can second owners be sure the recall job has been done and the better part used?

   CKP sensor location on the back of the motor makes the part difficult to change or inspect.

4. Less common is Throttle Position Sensor (TPS) failure. Again a frustrating intermittent fault for drivers and techs. I have worn out several of these on 18-wheelers and took to changing them myself. But for the average Altima buyer, sudden acceleration or hesitation faults are very unnerving.

   On 2005 QR25DE's installed in Altimas, failure of the TPS requires complete throttle body replacement.

5. A few dramatic engine fires have made the evening news, further souring the QR25DE equipped Altima's image.

These issues suggest four cylinder Altimas built in 2005 might not make my final list.

Transmissions

Altimas come with three transmission options.

The five-speed manual is standard on all but SL models. Stiff shifting from first to second seems to be the main complaint with the manual.

Four-cylinder Altimas feature a four-speed automatic, while V6-equipped cars use a 5-speed.

The 4-speed automatic transmission is very fragile. Numerous owners report jerky shifting from 1st to 2nd, various gear sticking and hunting behaviors, and poor service response from Nissan.

Most of these problems were eventually traced to transmission solenoid failures. This is an internal gearbox part, expensive to replace.

Eventually Nissan put out a technical service bulletin for it, for a narrowed range of VIN numbers. Many affected Altimas are on the used car market without having this done.

This further sullies the majority of Altimas - 2.5s with automatics.

Why did Nissan wait so long to do damage control on the transmission issues?

Because by 2007 a pair of continuously variable transmissions (CVT) made the old four- and five-speed automatics history.

Fuel Issues

This is not an economy car.

The now discredited QR25DE four was EPA rated, under the 2005 rules, at 24/31 mpg. As noted above, many buyers of four cylinder cars were disappointed by fuel economy and the seeming thirst for premium fuel. Others routinely obtained the government's mileage figures.

V6 Altimas got a 21/27 rating, but many owners average 18-19 miles to a gallon in mixed driving.

Urban driving might yield an unacceptable 15 mpg on recommended premium, hoot-footing the six would lower this.

With a curb weight of 3,335 lbs, V6 Altimas are, like every car in America, putting on weight.

So it's a good thing Altima's 20-gallon tank is among the largest in its class.

Any car purchased today should be evaluated on the basis of future gas prices, not the present $3.60/gallon.

I predict that in the near future, many Americans will routinely pay a monthly gas bill which is much higher than their car payment. "The once free nation that destroyed itself."

So, for me, looking long and hard at the money I put into a car, the used V6 Altima is also looking iffy. And there go the investment muscle car, restored classic, and sports car opportunities as well.

Altima Brakes and Tires

Altimas have 4-wheel disc brakes.

Nissan enhances performance while reducing cost by using soft brake parts. The boy-racer favored 350Z is notorious for early brake problems. Altima is close behind, with many reports of brake repairs as often as 12K miles on hard driven cars.

"Change the oil and replace the brakes..."

Many Altima buyers mistakenly believed that moderate driving habits would prevent premature brake wear and rotor warping. The solution is using high quality aftermarket pads and rotors rather than just allowing the dealer to install outsourced stock replacements.

Used Altima buyers assume the risk of additional brake costs.

There are many stories of Nissan rear brakes accumulating debris which cause brakes to drag. Rears should do only about 25% of braking, accelerated wear is abnormal.

Modern disc brake pads are easy to inspect and replace, rotors are a bit harder.

Everyone should learn to look at brake pads and feel rotors to determine the safety status of their car.

2.5 Altimas ride on 16-inch tires.

The vendors Nissan chose for many Altima tires were Continental and Bridgestone, both known cost-cutters. The 16 inch Continentals generated a large number of complaints for early wear and balance/vibration issues.

Winter traction was notoriously poor.

Used car buyers should be wary of any used 2005 with a new set of Continentals. Why did the owner put these on again? This is a sign of an unsophisticated first owner or dealer, and another strike against the 2.5 Altimas.

Very frequent problems with front struts plagued Nissan Altimas built in 2005. The solution to premature strut failure is replacement with quality aftermarket parts.

Corrosion in the rear sub-frame bushings of winter state Altimas produced early and chronic alignment issues. In some instances, rear sub-frame members may crack, creating a knocking noise.

The car has a poor winter reputation in general - traction, rust, cold starting.

Nissan Customer Service

To me, Nissan's weak support for the above listed problems is a bigger issue than the supply train cost slashing itself. You would think industry executives would learn from the Chrysler debacle.

Warranty claims are an unseen source of easy money for executives at struggling car makers. New car buyers rarely look beyond the advertised length of warranty, so toughening up on claims can restore billions to the bottom line.

NissanUSA Customer Service has a very poor reputation as a last resort when dealers cannot resolve an Altima's problems.

Used Altimas still within warranty (powertrain 60K) should be discounted for Nissan's infamous Chrysler-style claim denials and stalling.

Nissan dealers have been stuck trying to turn a service profit and may charge as much as $100 hourly for labor. Parts delays and profiteering are reported.

A late model car needs dealer support, especially when there are multiple issues. Used Nissan Altima buyers should avoid the mistake of buying a 2005 and looking for dealer support only when a problem occurs.

Choosing Your Altima

Despite all the above, I still consider Nissan, and the Altimas built in 2005, among the better value propositions available on the used car market.

That speaks poorly for the auto business as a whole. I would consider late model used Nissans ahead of most models built by Mercedes, VW, Hyundai, Volvo, Mitsubishi, Ford, GM, Suzuki, and Chrysler.

Buyers who are still interested in the 2005 Nissan Altima should proceed carefully, inspecting and appraising candidate cars with extreme care. Altima is a top selling car, there is plenty of used market inventory, so buyers can afford to be very picky.

A CARFAX vehicle history report, easily obtained for about $25 on the web, is mandatory.

I would eliminate lease-return, salvage title, and rental fleet Altimas immediately. 2005 models should have no more than two owners, price should be much lower for multiple owner cars.

A CARFAX is a fishing expedition for negative data to scratch a car from consideration, not a clean bill of health if nothing turns up.

Inspection and Appraisal

If the inspection process described here seems "too technical," maybe a Honda would be a better match despite the higher price.

It is time to look this gift horse in the mouth. Try to verify odometer mileage and maintenance claims by wear and tear clues.

A good tactic is to hem and haw over every defect, pointing it out to the seller, even when you are planning to make an offer.

With a quarter million 2005s on the road, there is no reason to purchase a Canton-built Altima, check the VIN for the "N", see above.

Most dissatisfied first owners have already traded/sold their '05 lemons, whereas keepers may not be on the used car market yet.

If the car has the 3.5 engine, look for signs of abuse.

The 250 hp 2005 Nissan Altima is a car that loves to be pushed.

Was any previous owner a boy racer?

Lowered suspensions, taller rims, very dark aftermarket tinted windows, leftover wires from boom-box installations, and big-bore exhausts are tell-tales for fast-and-furious toxic-to-cars lifestyles.

Full throttle standing starts with the 3.5, despite traction control on, will spin the front tires, putting severe stress on front wheel drive components.

Worn or replaced front tires, compared to rears, deserve investigation.

Examine tires for any irregular wear, using eyes and running fingers along inner edges. Fingers can find clues, like feathering or cupping, that eyes miss. Look at sidewalls for wear lines or cracks telling of chronic under-inflation, a clue to poor maintenance overall.

Check air pressure in the tires with a quality gauge. It is important to have all four tires at exactly the same pressure, say 33 psi, during the 2005 Nissan test drive.

More than a walk around is required, this one needs to go up on the rack/jack/ramps.

If the seller balks at an extended test drive, reject the deal. Private sellers may be nervous, if the car has passed other hoops I'd offer to replace more gas than was used.

The body should be inspected for signs of collision repair, which might not be accompanied by a salvage title. Welds on the undercarriage or panel gaps out of alignment anywhere are bad signs.

Paint irregularities may turn up under rocker panels where impulse buyers never look.

Also look for underbody rust and rear sub-frame corrosion, signs of a wintered car and/or improper assembly.

Look for leaks under the Altima when the engine is cold, then again after the test drive. Radiator replacements are common. Look for oil on the bottom of the engine oil pan and red fluid slowly dripping from the transmission pan.

Exterior rust begins along door edges and along the upper windshield edge.

Paint suppliers got the cost crackdown message and the '05 Nissans had poor finish durability. Get close, looking for the paint chips and scratches where rust starts. I knew a guy who bought and sold Corvettes at a consistent profit: he used a magnifying lens to inspect paint work.

Altima has low ground clearance, many drivers run over road hazards, so get down and look for cracked plastic under the front grillwork. This stuff is expensive and will vibrate loose once the crack starts to run. Dual exhausts and air scoops should also be scrutinized.

Altima's grille is large and vulnerable to parking space hit-and-run, inspect and tug on it.

Weather stripping around doors and windshields has been problematic on the 2005 Nissans, use fingers to "see" irregularities.

Under the Hood

Maintenance history is critical, the more documents the better. Underhood investigation should attempt to verify mileage assertions.

For example, the HEPA in-cabin microfilter on the air conditioning, behind the glove box, recommended to be changed annually, is simple to access and change. This can be neglected by owners or deliberately ignored by service techs.

Nissan Altima's odometers have been found to overclock 2-4%, a good thing for used car buyers once the warranty period is expired.

With the QR25DE four engine I'd require a compression check to verify rings and cylinders are tight.

Ask the seller about oil consumption and other issues listed above. A few will honestly reveal a problem.

Check struts for signs of replacement: clean nuts and threads, ect. Stock struts last around 30K miles on uneven surfaces, replace with quality after-market parts.

Nissan alternators are notoriously short-lived, another after-market upgrade opportunity as opposed to overpriced stock-dealer replacement.

Inside the 2005 Cabin

Test every aperture; open and close sunroof, all doors, gas tank access hatch release, glove box, everything. Altima's auto-down feature on power windows should be used at least twice. Keys should slide easily in and out of locks and ignition.

Cloth seats are easy to soil, and hard to clean. Look for stains, loose ripples, and burn holes that say previous owner was a "smoker." If you smoke and don't care, point out this defect to the seller and deduct points from your best offer.

Leather seat material used is low grade and should be examined closely for cracks or small tears. Another offer-reducing lever.

Although the 2005 Altima's interior was an upgrade, cheap interior materials are very easily scratched.

Look carefully at the chrome trim around the key hole, around the release button for the storage compartment above the radio, on the shifter and nearby trim, and power window buttons. Many scratches suggest a higher mileage car.

Feel for loose handles and interior trim.

Test Drive Required

" The test drive went very well. When I got home, I too noticed the same hard shift between 1 and 2."

Forum Quote

Many sellers will warm up a car before prospective buyers arrive.

Ideally the motor should be cold started, so clearances are at maximum and oil galleries are dry, with the hood open. Listen for prolonged timing chain and tensioner rattle when starting. There should be no knocking or hesitation in firing up.

Lower motor mounts on Altimas are notorious for early failure, providing vibration visible during the start.

Start, shut down, and restart within 30 seconds to check for sensor issues.

It is amazing how many car buyers fail to notice whether the check engine light is on during a test drive.

Repeatedly engage transmission from park into drive, many 2005s had sticking issues.

Nissan AC always blows pretty cold, no warm air should be felt when AC is on.

Before moving do a full lock power steering test, briefly pushing the system to its limits, left and right.

Steering knuckle binding, prominent in Altimas, can be felt as the wheel is turned without the interfering vibrations of a moving car. Listen for undue noise during the load test.

'05s, which have the radio antenna in the rear window glass, are known for erratic radio reception.

Test the stereo at all settings and volumes before driving, then shut it off. Car salesmen know they have a sucker when they turn on the radio and the buyer doesn't quickly reach over and snap it off.

As the car moves at moderate speeds, preferably in light or no traffic, listen for little mechanical noises. Struts popping, tires making uneven or excessive noise, clunks from the drive-train, worn brake pads scraping.

Again fingertips can "see things." Grasp the wheel lightly with fingertips only, feeling for directional tug, shake, and vibration. These are very common, especially with the 16" Continental Touring Contact AS tires.

Step evenly on the brake pedal, lightly, then progressively harder. Warped discs, common where tire installers and other low tech "technicians" are instructed to over-torque lug nuts for legal reasons, will make a rhythmic tugging as if you are pumping the brake.

As you gain speed listen and feel for low-frequency groaning and vibration, often due to improper wheel balance. Altima wheels need re-balancing after each tire rotation.

Engine hesitation or stalling could mean the crankshaft and camshaft sensors have not been replaced. Big money repair and evidence of broader neglect.

Clunking or hunting (failure to select proper gear quickly) in the transmission could mean the solenoid repair has not been done.

The car should be driven to freeway speeds, 75 mph, as 2005 Altimas are notorious for degraded cruising comfort with age.

Conclusions

Altima 2005 is still a desirable car, but the price should reflect the many issues noted here.

In April 2008, I have seen several eBay auctions finish in the mid $9,000 area.

My absolute max for a loaded 3.5 SL would be $14K, but many private sellers, and most dealers, are asking for more.

I think Carlos Ghosn and the turnaround team at Nissan missed an opportunity here - cheap parts restored short term profits but hurt the company's long term prospects. Nissan's Altima for 2005 bore evidence of that mistake.

I close with a forum quote posted by a smart shopper:

"The Altima I want MUST have ABS and side-impact aibags and head curtain restraints side airbags/curtains, REGARDLESS of other options"

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