IN THE MARKET FOR

a new car? When it comes to picking the best, this year hats are off to Japan, according to Consumer Reports' 2006 Best Car Picks. While Japanese cars have long had a significant presence on the consumer ratings magazine's top picks, this is the first year since it started publishing the list in 1997 that they fill all 10 spots.

"The Japanese manufacturers have great attention to detail, they make cars people want to buy," says David Champion, senior director of Consumer Reports' Auto Test Department. "Their cars have great reliability." (For the full list, see the table below.)

Each year, Consumer Reports tests hundreds of new cars it buys anonymously from car dealers. Engineers and technicians test the cars at its East Haddam, Conn., Auto Test Center and on public roads for performance, support and safety.

At the same time, Consumer Reports reaches out to its subscribers to survey new and used cars' reliability a measure of how often owners have to take their car to the dealer to be fixed. This year's findings: Owners of Japanese cars reported the least problems, while those driving domestic or European vehicles had to take their cars to the repair shop more often than they liked.

Only 9% of 2003 Toyota Highlander (V6) owners reported having problems with their cars over the past three years, for example, compared with 56% of the owners of 2003 Land Rover Range Rovers. With eight-year-old cars, 24% of 1998 Toyota Tacoma owners have had to take their vehicle in for repairs over the past eight years, compared with 72% of Volkswagen Passat owners. (For a list of the most reliable cars over the past eight years, see the tables below.)

To make the top picks list, a car has to have scored at or near the top among competing vehicles on Consumer Reports' testing program, have an average or better predicted reliability, and must have performed adequately in overall crash protection tests performed by the insurance industry.

Among the other interesting findings of this year's Consumer Reports car surveys:

• Hybrids are not as cost-effective as most think

  . Hybrid cars save you money at the pump, but the savings are often offset by their higher purchase price and sales tax, as well as extra insurance, maintenance and depreciation costs. Overall, Consumer Reports estimated the total five-year car-ownership costs of a hybrid exceed those of similar conventional vehicles by anywhere from $1,883 to $5,508. Only two models the Toyota Prius and the Honda Civic saved their owners $406 and $317, respectively, over the first five years.

• European cars lag

  . Thought German cars were superior? Forget about it. European car makers continue to get beaten by their Japanese and domestic counterparts. Currently, the owner of an eight-year-old Toyota, for example, is expected to report fewer problems than the owner of a 2005 Volkswagen.

• High-tech gadgets can be a pain

  . Have your eyes on the latest GPS system or a car with an electronic key? These can be a costly hassle, says Consumer Reports. GPS systems can cost up to $200 or $250 to update, and if lost, electronic keys are just as costly to replace.

How Reliable Is Your Car?