At 1-800 LEMON LAW, we have heard of folks suffering with headaches after driving around in their new vehicle, and we never understood what they were talking about….until now.  It appears that the new car smell we are all so fond of could actually make us sick.

CNN.com is reporting that this scent could be made up of a variety of poisons, including arsenic and formaldehyde.  With American automakers suffering in an economic slump, this pollution is not getting much play.  On the other side of the world however, European and Japanese automakers are well aware of this problem and are working hard to combat it.

So, which cars tend to be most problematic?  According to the Ecology Center’s HealthyCar.Org study which they put out each year, the most toxic avengers are:

• Suzuki Forenza
• Suzuki Reno
• Lincoln Mark LT
• Mitsubishi Eclipse
• BMW 128i

As we continue to report, new car sales have been sinking faster than the Titanic.  Many folks, hoping to save a couple bucks, are turning to used cars for solace (not a bad idea considering that depreciation accounts for a whopping 46 percent of the owner’s cost over a five-year period).  But we need to remember that regardless of how much a car costs, gas is the same price for everyone.  Therefore, the big question is “which used cars use less gas?”

Fear not distressed driver–Consumer Reports has come to the rescue.  On their car blog, they have compiled a list of used cars which have the best fuel economy.  These rankings are based on measurements using a flow meter,  and calculated from equal portions of city, expressway and rural roads.

Without further ado, here is the list:

Under $10,000

• 2000 Honda Insight (Manual)   51MPG
• 2001-02 Toyota Prius 41MPG
• 2000-05 Toyota Echo 38MPG
• 1999-2002 Chevrolet Prizm  32MPG
• 1998 Mazda Protege LX 32MPG
• 1998-2001 Acura Integra LS (Manual)  32 MPG
• 1998-2000 Toyota Corolla CE/LE  32/31 MPG
• 2004-05 Toyota Scion xA manual/automatic  31/30 MPG

$10,000 – 20,000

• 2004-06 Toyota Prius  44 MPG
• 2002-03 Toyota Prius  41MPG
• 2006-07 Honda Civic Hybrid  37MPG
• 2003-05 Honda Civic Hybrid  36MPG
• 2007 Honda Fit Sport (Manual)  34MPG
• 2007 Toyota Yaris Liftback (base, manual)  34MPG
• 2007 Toyota Yaris Sedan (base, automatic)  33MPG
• 2007 Honda Fit (base, automatic ) 32MPG
• 2004-06 Scion xB (manual/automatic)  32/30MPG
• 2006 Scion xA (manual/automatic)  31/30MPG
• 2006-07 Honda Civic EX (manual)  31MPG
• 2004-07 Mazda 3 (manual)  30MPG
• 2006 Mini Cooper Hatchback (manual)  30MPG

This list does not come as a huge surprise.  It is largely dominated by Toyota and Honda, two companies we revere.  Of course, as we always tell you, it is important to make sure you buy a car with a manufacturers warranty.  Chances are this is going to be a car that is less than three years old.  And please ALWAYS remember to bring along our Lemon Dodger worksheet so you know which questions to ask.  What good is saving money on gas if the car does not run?  Happy shopping!

Anyone looking to purchase a cute, compact number in the wake of these high gas prices?  If you’re looking for a cool ride that will be easy on your wallet, look no further.

Consumer Advocate Jack Gillis and The Center for Auto Safety have put together a comprehensive list of Best Bets in the 2008 Car Book, and they have given 1-800 LEMON LAW permission to reprint their findings. These are the highest-rated vehicles in terms of crash tests, safety features, fuel economy, rollover prevention, maintenance and repair costs, warranties, insurance costs, customer complaints and overall performance.

So, without further ado, here are this year’s best bets in the compact, subcompact and intermediate categories:

Subcompact:
Hyundai Accent
Kia Rio

Compact Cars:
Honda Civic/Civic Coupe
Hyundai Elantra
Kia Spectra
Nissan Sentra

Intermediate:
Acura TSX
Acura TL
Chrysler Sebring
Hyundai Sonata
Kia Optima
Nissan Altima

This list is great news for the Korean manufacturers, who have certainly stepped it up in terms of quality and warranty coverage since their inception.  They are following in the footsteps of stalwarts Honda and Nissan, both of whom have always been respected for offering top notch products and exceptional customer service.

And if you don’t care about a little pain at the pump, you can check out the best large cars, SUVs, minivans and trucks, by clicking here. Also, here is our disclaimer for the day–remember that just because a car may appear on this list does not mean you are completely clear of finding youself in a lemon. Defects do happen from time to time, and if  your sweet ride is turning sour, you need to know your Lemon Law rights. Happy shopping!