New Car Buyers Guide: What is MSRP?

When it comes to purchasing a new vehicle in Canada, the process is relatively simple. You walk into a car dealership, inquire about your favourite models and makes, take some test drives,  and begin the negotiation process to get the best price for your investment.

The conversation typically starts at a price point set by the dealership and from there, the buyer will proceed to explain their budget so that the dealership can find a more suitable price for the both of them. The goal of the dealership is to make maximum profits whereas customers are looking for the best deal for their money. For those that have not gone through this process, this can be a challenging point as to what range you should provide the dealer, which is why understanding the definition of the MSRP and how you can leverage tools such as a dealer invoice price for comparison which can be instrumental to getting a good price.

Keep reading to learn more about the difference between the MSRP and a dealer invoice price:

 

What is MSRP?

MSRP stands for the manufacturer’s suggested retail price, which is exactly what it sounds like. Once the vehicle is manufactured, they put together a list of costs associated with the makeup of the vehicle along with any creative and design aspects. They recommend this price that includes the sales efforts and markup, encouraging all locations to have similar price points so that it can be standardized across the board.

This would be more or less the price that dealerships promote, adding on any discounts or additional markups. Understanding the MSRP is often negotiable will allow you to find the range to start the conversation from.

 

What is a Dealer Invoice price?

A dealer invoice price is a price that the dealership is invoiced for the vehicles that they sell. This is often the cost to the dealership, so a subsect of the MSRP. The amount is the direct materials, labour, and overhead associated with the vehicle and this becomes a charge to the dealership when they purchase them to sell to customers.

It is commonly known that the dealer invoice price often excludes costs that dealerships are able to get out of through incentives such as dealer holdbacks or cash incentives. Keep in mind, those discounts are not shown on the invoice prices that are on the report but for the most part, dealer invoice reports help to show an at-cost version of the vehicle you are looking for which is what you need to begin negotiations.

 

So the difference is…

The difference between MSRP and the dealer invoice price is the profit margin that the dealerships make. They are looking to maximize that as much as possible, but all car dealerships are in the business to make sales so they will negotiate until you are satisfied with the price and they are satisfied with the profit margin.

 

Obtaining a Dealer Invoice Report

With Car Cost Canada, you have the opportunity to get a report that showcases the dealer invoice prices and with the service, certified dealerships are recommended so that you can connect with someone who is ready to negotiate on these terms. Since the report itself is free, you have the opportunity to save money without initially investing anything.

 

Negotiating Strategies

Alongside a dealer invoice report, here are some tips and tricks to help you in your purchasing conversation:

  • Do not be an impulse buyer: cars will not run out, if you want a certain model or make, they will exist a week or a month from now. Take your time so that you make the best decision for your commuting needs.
  • Negotiate up from the dealer’s cost: utilize the dealer invoice report and take away any dealer holdbacks and cash incentives to obtain the dealer’s cost; from there, you can negotiate from an additional 3-5% upwards.
  • Bring someone along: this will provide another perspective and give off the impression that you cannot be intimidated; use your partner to strategically guide the conversation so that the power is in your hands.

 

Have your best foot forward in negotiating for your new vehicle. Do not get blindsided by additional markups or prices by utilizing the tools you have strategically. A dealer invoice report can give you all the information you need to make an informed decision. Contact our team today to learn more about the service and to get more advice.

 

Best Vehicles of 2018

As the year comes to a close with the holidays among us soon, there are many things to be grateful for. The wonderful family and friends that we all have, the amazing memories, and the best deals that we got year-round.

When it comes to purchasing a new vehicle, the best deals were found this year through Car Cost Canada’s process of utilizing invoice reports to negotiate. With hidden rebates and invoices, these reports are able to showcase the actual price you should be paying for your dream car. If you’re looking for a value-added car, take a look at our list of the best vehicles of this year and obtain a report so that you can negotiate for the best price:

Kia Sorento

SUVs often have the reputation for having a cramped interior alongside a loud drive to the vehicle and with the Kia Sorento having some of the lowest prices in the class, it seems like a too good to be true type of bargain.

Although SUVs often have an obnoxiously loud ride, the Sorento provides a smooth, quiet ride — similar to a luxurious SUV option. The interior of the vehicle also provides an ample amount of passenger space alongside up-to-date tech features to assist you while driving. It is a family-oriented car and with low ownership costs, it is a top choice to keep around.

Audi A3

This vehicle combines low costs and luxury, providing a quality drive for those on a budget. It maintains the level of performance and build that a regular Audi would have while having a starting price that is affordable.

The A3 provides a sense of prestige and alongside a great starting price, it also has low ownership costs. Over the course of 5 years, you would save more on this car than others in the same class.

Toyota Camry

The Toyota Camry is a classic midsize car that has been a staple in many households. SUVs have gathered consumer attention in the past couple years but the Camry provides long-term value. Not only is it an excellent vehicle but it adds on to the standard midsize by providing loads of standard safety features, an abundance of tech compatible with smartphones, and quality performance. The long-term advantages of the Camry offset the initial price of the vehicle that is slightly above class average.

Lexus RX 350

It is clear why this vehicle that has won the award for Best Car for the Money several times, with low prices and a quality build. The vehicle provides a zen-like ambience with plenty of room for passengers, alongside an aesthetic design, with upscale materials that impress many. It has been proven to be reliable with excellent ratings, less repairs historically, and further savings for you.

Honda CRV

A Honda CRV is the equivalent to a small SUV model — perfect for families. Similar to other small SUVs, it has a hard time distinguishing itself but it has continuously won Best Car for the Money in the past five years.

It is an incredibly roomy and practical cabin and produces quality daily performance. It is easy to maneuver and has low costs and ownership costs overall.

Honda Odyssey

When it comes to minivans, the Honda Odyssey takes the cake for the best one. With the upgrades, there are options to add a Wifi hotspot alongside a rear side entertainment system with a massive screen for passengers.

A vehicle like that provides plenty of space for both cargo and passengers, allowing for flexible seating configurations. The Odyssey is also one of the best in the class as it has low ownership costs while perfecting the value-add of entertainment and engagement. Family-oriented groups will enjoy this vehicle as the ample amount of passenger space pushes it to be a primary method of transportation for road trips compared to smaller midsize sedans.

Invoice Report

Each of these vehicles have their perks: either they are priced lower (providing a bargain), have high quality parts that make it unique, or they produce long-term savings with low ownership costs. Regardless, there is another method that makes each of these quality vehicle choices even more affordable. With Car Cost Canada’s invoice reports, you are able to find rebates and incentives that may not be evident without this report.

Looking for a new vehicle? Take a look at Car Cost Canada’s service and what affordable can look like for you. With dealer invoice reports, we are able to provide you with the best price for any model or make that you are interested in.

What Drive Type will Help you Combat Winter Weather?

The temperatures are dropping, dark clouds fill the sky, night time is falling earlier, you know what that means? Winter is just around the corner and whilst winter is home to many great things such as skiing, tobogganing, candy canes, and warm drinks galore, it is also home to some less-favourable weather conditions. Ice, snow, slush, sleet, rain, and salt riddle the roads in the colder months, hence why switching to winter tires that can grip these surfaces better is imperative. Whilst switching to winter tires is essential and typically the first step once the temperature drops, many don’t consider another key factor that affects a vehicle’s performance in winter: drive-type. There are four drive-types and each one determines how a vehicle drives in various conditions. Doing a throughout vehicle comparison can help you find the best vehicle to combat the harsh winter weather and also provide a smooth, comfortable drive all year-round. The big question now is, what drive-type can withstand winter and all it has to offer?

All-wheel-drive (AWD)

A significant amount of vehicles are AWD and for good reason. AWD vehicles tend to be extremely safe and can easily adapt to a variety of surfaces. An AWD system involves engine power being sent to all four wheels which will give the traction needed to get through snowy roads. In comparison to other types of drive, all-wheel-drive is by far the best when it comes to its ability to combat the road elements winter throws upon us. AWD was once only available in specific makes and models, however, due to its impressive performance, it is now the standard with most makers. All-wheel-drive vehicles are also the easiest to handle in such conditions, making them a great choice, especially for those new to the world of driving. Adorned with a set of quality winter tires, an AWD vehicle is sure to keep you safe even on the harshest winter days.

Front-wheel-drive (FWD)

Front-wheel-drive vehicles weight distribution is shifted towards the front unlike all-wheel-drive vehicles, where the weight is distributed equally amongst all axels. FWD vehicles do an impressive job when put up against winter weather. The weight of the engine sits on top of the drive wheels which allows it to push through some pretty nasty weather. Whilst you will have the ability to safely drive from A to B (which let’s face it, that’s pretty much what we need when driving), you will be sacrificing some performance. Due to the displacement of power being shifted to the front, FWD vehicles typically lack in the speed department. The wheels that steer the car are also responsible for propelling the vehicle which in turn, will cost you some points on the speed and performance scale. Albeit, you most likely don’t want to be doing any high-speed maneuvers in the winter. FWD vehicles are an economical choice for those who like to take it easy, enjoy the drive, and get through some rough weather.

Four-wheel-drive (4WD)

If you’re looking for a vehicle that will take on the toughest of terrains, look no further than a 4WD vehicle. This drive type is typically seen in trucks and all-terrain vehicles. This drive-type works in a couple different ways, operating as a four-wheel-drive or, at times, a 2-wheel-drive vehicle. When in 2WD mode, the vehicle’s traction drops, ergo, lessening the grip the vehicle has on the road. When in full 4WD mode, however, these vehicles are designed to handle various, difficult terrains including deep, heavy snow, slush, mud, and unpaved roads. Similar to a FWD vehicle, 4WD sacrifices speed but makes up for that with its powerful drivetrain. Do consider the fact that 4WD vehicles carry a lot of additional weight and tend to be more costly. If you drive short distances are don’t partake in much or any offroading, you are not getting bang for your buck. If, however, you enjoy off-roading in the summer and just getting through the roads safely in the winter, a 4WD is the vehicle for you.

Rear-wheel-drive (RWD)

Speed, power, performance- all qualities that rear-wheel-drive vehicles possess. Most sports/performance vehicles are RWD, which comes as no surprise when you see the power and speed these vehicles give off. With RWD vehicles, power is sent to the rear wheels, propelling your vehicle from the back when you step on the gas. Whilst this all sounds great, rear-wheel-drive vehicles are the less-favourable when it comes to vehicles fit to endure winter roads. They are infamous for fishtailing and breaking traction on snowy roads and sometimes, simply on wet surfaces. Whilst they are still drivable in the winter and many Canadians who own a RWD adapt to how they work, they require caution and care when driving. They are incredibly fast vehicles and while they will still give you that speed you want on snowy surfaces, it is best to slow down on harsh days to avoid a dangerous fishtail or spinout. If you are all about performance and speed, a RWD vehicle is best suited for you, but keep in mind, you will have to put all that on hold come the winter months to ensure you are in the safest position you can be in.

Every drive-type has its ups and downs. Some perform between on smooth surfaces and others perform better amongst harsh elements. It’s imperative you understand the differences of all the drives prior to purchasing a vehicle to ensure you are getting the best possible vehicle for your situation, your family, your driving experience, and your location.

Need help finding a vehicle that will brace the unpredictable variables of a Canadian winter? We can help! Contact us today and be prepared for whatever mother nature throws your way!

5 Easy Ways to Get Out of Your Car Lease Early

You may want to terminate a car lease early for several reasons. Maybe you’re moving out of province and don’t want to take the car with you, or you want a car with a less expensive lease. Whatever the reason, it’s not always easy to get out of a lease early, and most likely you’ll have to pay a fee to do it. If you’re deadset on getting out of your car lease early, keep reading for 5 ways to do it.

Looking for a new car and thinking about leasing? When you sign up for CarCostCanada you get access to the dealer invoice price report, which tells you everything you need to know about the finances of the car you’re looking to lease. The report will give you a comparison of both financing and leasing options, so you can decide which you would rather do, and what the best rate you can get is. It will even tell you what rebates and incentives you’re entitled to so that you can get a better deal on your brand new car.  Sign up for a premium membership and get multiple free reports so that you can compare different cars in Canada.

5 Ways to Get Out of a Lease Early

Transfer the lease: One of the easier ways to get out of a car lease early is to transfer it to someone else. You can use third party services to do this, and they will find someone to take over your lease for you, or if you know someone is wants to take on your lease you can do so. While most leasing companies will let you transfer the lease over to another person, you need to remember that name on the contract will still be yours, and you will be liable if the other person stops making payments.

You will also most likely have to pay a transfer fee to get out of your lease. This can range from $50 to $500 depending on the lease and the company you lease from.

 Sell or trade the car: While most people are aware that they have the option to buy their vehicle once the lease agreement has reached an end, many are unaware that you can buy the vehicle from the leasing company at any time. This is known as an early buyout. If you can find a buyer for the car or plan on , this is a great way to get out of your lease early. You should note that again you’re likely going to have to pay a charge to end the lease early; an early termination fee ranges from $200 to $500, plus any remaining depreciation cost.

Return the vehicle: When leasing a car, you always have option to return the car to the leasing company, but be prepared to pay heavily in penalties. You’ll end up paying a large termination fee and the remaining depreciation of the car. It’s a better option to buy and sell the car yourself to save more money.

Ask the leasing company for help: If you’re looking to get out of your lease for financial reasons, but feel you’ll be in a better place in a few months, you can always reach out to the leasing company and ask for payment relief for a few months. They may agree to suspend your payments for a few months, or will lower the monthly the payment for a few months. You’ll have to pay back the difference later, but you won’t get extra penalties.

Talk to CarCostCanada: If you want to get out of your lease early, we can help. CarCostCanada.com and LeaseBusters.com are partners, and we can help you get out of your car lease early so you can take advantage of all the new car deals found in your free dealer invoice price report. LeaseBusters.com has been assisting Canadian leasing customers get out of their vehicle lease since 1990. If you want more information regarding the process of getting out of your vehicle lease or are looking to get a no-charge professional evaluation, just CarCostCanada with with your contact information here and a LeaseBusters professional will contact you within one business day or less.

Looking to lease a new car? Sign up for CarCostCanada and take advantage of our free dealer invoice price reports for great new car deals in Canada! Call 1-866-453-6995 to learn more!