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.

 

2019 Vehicle Rollouts: These New Cars Are Keeping Everyone in Breathless Anticipation!

Say hello to the graduate class of 2019. Pickup trucks and sports utility vehicles promise to make a big splash in car sales in the new year. Expect an extensive lineup of completely revamped luxury cars, family sedans, and sports coupes. If you’re looking for the best new car deals in Canada, we suggest sticking around.

In this article, we break down some highly anticipated new releases that will hit dealerships very soon. Don’t pay the full MSRP for your new vehicle. With Car Cost Canada, get a free dealer invoice report that gives you access to certified dealerships,  lowest price offers, rebates and lets you successfully avoid the hidden fees!

Without further ado, let’s delve into the three new 2019 releases that car enthusiasts are most looking forward to:

 

Audi 2019 A8

Audi’s flagship sedan boasts of several improved features such as comfortable and spacious wood trimmed interiors as well as a dual screen infotainment system that gives the driver access to virtual cockpit operations. The fourth generation vehicle focuses on passenger comfort. Interactivity with the configurable infotainment system takes place either through haptic controls or voice commands.

To add to the luxuriousness of it all, the model comes with several auxiliaries such as a heatable center console, plush armrests and a dual tablet system for the rear passengers’ entertainment.

Just when you thought it couldn’t get any better, it does. The rear seats are very amenable to elevate comfort levels. They massage, recline and come with fully adjustable foot- and headrests.

How about the engine? Well, the 2019 model ups the ante and has a V6 turbo powered engine (3.0 litres). To afford enhanced vehicular dynamics, it also offers active suspension and is available with 48-volt technology.

As part of its semi-autonomous safety features, the R8 offers auto braking to curb the likelihood of collisions. This system will prove to be more useful than you realize in light of the updated 2019 distracted driving laws in Ontario, which convicts drivers who get distracted when using a handheld cellular device, eating or reading. Fines soar as high as $1,000. The Audi R8 lets you stay connected while never taking your eyes off the road.

 

Mercedes-Benz 2019 S-Class Sedan

Mercedes-Benz has made some tall promises for 2019 and from the looks of it, the German automobile company has every intention of keeping them. A single glance will reveal that the S-Class cuts a more exclusive figure than previous models. It’s two-tone exterior paint finish and pinstripe-inspired grille stay true to the automaker’s conventional pedigree.

With the spacious interiors, both driver and passenger comfort exceeds newer heights. Expect recline and massage rear seats and individual front seats that have a folding table option. The S-Class’s LED lighting is a beacon of convenience for drivers. With the Ultra Wide Beam technology, tricky curves and turns in the road are illuminated.

The automaker has even surpassed itself with its advanced driver assistance technology – a godsend to help drivers avoid collisions when distracted behind the wheel. As mentioned before, in light of the new distracted driving laws, any autonomous specs are a welcome addition in 2019.

You can switch lanes at the tap of a button, be alerted of danger on the streets ahead and even access the car’s automatic drive options – it detects toll booths or exits and slows itself upon nearing them.

Navigation and entertainment never take the back seat with a beauty like this. Android Auto and Apple CarPlay are fully compatible. The infotainment system’s stellar interface integrates with your phone and offers voice control interactivity. Whether you’re at the front or back, you can access wireless charging features on the go.

 

Genesis 2019 G70

Genesis, the luxury branch of its parent company Hyundai, is introducing an entry-level sports sedan G70, that will follow in the footsteps of the larger G80 and G90 models. The attractive sedan is much more compact than its predecessors and comes in five trim levels: Advanced, Elite, Prestige, Dynamic and Sport.

The driver is able to configure their G70 as they like by choosing from two engines, two transmissions and from an all-wheel or a rear-wheel drive. The Genesis G70 comes with five powertrain options, with the 2.0-litre engines boasting of 255 horsepower being at the starting tier and a 3.3-litre engine with 365 horsepower being at the top tier.

The interior of the car doesn’t disappoint either. Neat and clean lines characterize the vehicle’s exterior, while the automakers clearly maintained a driver-oriented layout. The 7-inch LCD touchscreen and accessible analog controls are positioned on the central instrument panel. Additionally, the driver will find an 8-inch screen that rests on the centre stack, as well as two neat rows of easy-to-use buttons for climate and audio control options.

To make your cruise that much more pleasurable, Android and Apple CarPlay compatibility come standard with your car. You can even access Qi wireless charging, navigation and a 660-watt Lexicon acoustic system.

These Cars Will Arrive at Your Local Dealership Very Soon

Don’t Break the Bank to Get Them!

If any of the upcoming 2019 models in this list or otherwise catch your eye but you’re anxious about the MSRP, we’ve got great news! Don’t pay the full dealer invoice price. Access rebates and discounts from certified dealerships. Shop smartly – Pay 15% lesser than everyone else!

The road ahead looks promising! It all starts when you request a free dealer invoice report from Car Cost Canada.

The Future Fleet of Vehicles is Here: What to Look Out for in 2019

The past year alone we have seen an increase in futuristic features brought forth to vehicles. From infotainment systems to autopilot, vehicles have certainly come a long way. Many new drivers are learning in vehicles that do a substantial amount of work for them through features such as assisted lane changing, back up cameras, parking assistance, etc. Although this may sound like a lot, it’s only the beginning. Many new cars rolling out in Canada next year are jam-packed with features that are changing the way we as humans drive. If you are looking to get your hands on a vehicle of the future whilst simultaneously getting the best deal possible on said vehicle, you’re in luck. Our dealer invoice report can help you save money on your new 2019 vehicle. So, what exactly should you look out for in 2019?

Electric vehicles

Surprisingly enough, electric cars have been around for quite some time, with the first one being manufactured in 1884. It wasn’t until the 2000s, however, that electric cars began making waves in the automobile industry. Tesla was one of the first to revolutionize the electric vehicle and since then, a surplus of makers have been diving into the electric vehicle route. Consumers have been happily on board as well, with over 4 million all-electric and plug-in hybrid vehicles on the road as of September 2018. This number is only set to skyrocket in 2019 and for good reason; electric vehicles are not only better from an environmental standpoint, but they also save owners money as well, with charges costing less than a tank of gas.

Automakers such as Mercedes-Benz, Nissan, and BMW (to name a few) have also dabbled in the electric/hybrid vehicle world, making there own environmentally friendly vehicles. Due to the increase in electric/hybrid vehicles being made, they are being increasingly more affordable to consumers looking for an economical day to day vehicle, hence, why their presence on the road is projected to double. Of course, if you are looking for luxury, there are several makes out there, including BMW’s i8 hybrid which boasts speed, power, and luxury.

 

Infotainment Systems

Take a look inside any 2019 vehicle and you will more likely than not see an impressive infotainment system. Although infotainment systems have been around for quite some time, their features keep on expanding. What was once just an on-screen radio for your vehicle has now become a hub for performing a plethora of features. From GPS to Bluetooth to temperature control to a fully-functional camera, infotainment systems have essentially become mini computers for your vehicle.

In recent years, Apple CarPlay and Andriod Auto have been unveiled, allowing you to utilize several functionalities from your phone through your vehicle including Google Maps, text messages, video, audiobooks, and many more. In 2019, it would come as no surprise that nearly every vehicle comes equipt with an infotainment system that handles a vast variety of vehicle capabilities and features that benefit both the driver and the passengers. With that being said, it’s important to keep in mind that as a driver, use of these whilst driving is still illegal, so we suggest utilizing “talk-to-text” or Bluetooth functions, should you need to utilize your infotainment system.

 

Safety Features

Before we look ahead, let’s look back. A decade ago, learning how to drive a vehicle required was seemingly a more difficult task. There was no backup camera to help you reverse, no lane-assist to cover your blind spots when you forgot, no park assist to help you ace that parallel park every time. Fast forward to the current day and age and vehicles offer assistance for virtually everything. Many 2019 models are coming equipt with or offering packages containing a wide range of features that will aid the driver in performing typical tasks such as parking, changing lanes, reversing, etc. These features are expected to be fine-tuned come 2019 and it will come as no shock if more are revealed. The big ones to look out for are parking assist and lane change assist. With more fine-tuning in the future, these features may eliminate new drivers need for learning how to perform tasks such as parking or the steps they take prior to changing lanes.

 

Self-Driving Vehicles

More and more automakers are looking into designing the perfect self-driving vehicle. Referring back to Tesla, they were one of the first to introduce this new wave of technology with their autopilot feature. Since then, a plethora of automakers have followed in suit, creating vehicles that function without the need for a driver. Of course, most vehicles are still in beta and many still require a drivers presence. Tesla, for example, requires drivers to have their hands on the steering wheel for a certain period of time. With all this being said, many companies are testing out vehicles where the driver isn’t required to do anything and in some cases, these vehicles do not even have a steering wheel! Creating a self-driving vehicle takes a lot of time due to the many safety features they must factor in on top of standard vehicle safety features. 2019 could see the wake of the self-driving vehicle era.

 

Bonus: What We Most Likely WON’T See in 2019

While we have come a long way in the automotive industry, there are still some features and ideas that are still years away from becoming reality. Here are just a few features that we will probably not see in 2019 or perhaps, even a few years after:

  • Flying cars. When you think of a vehicle of the future, you think flying cars. Sadly, we are not there just yet and there are no plans from automakers to turn this into reality just yet.
  • All cars will be tiny cars. Some thought that cars of the future would all be compact, however, this is far from reality. The Smart Car is the closest we have to a very compact vehicle and has been the only true competitor for quite some time.
  • No more cars. Others predicted that cars would be obsolete at some point. This seems like a far stretch considering the automotive industry is constantly growing.

 

Ready to own your own “car of the future”? Contact us today and we will help you save money on your new vehicle purchase!

Leasing and Winter Tires: Why The Two Go Hand-In-Hand

It is both interesting and perplexing why the new car automakers have not become heavily involved in a new car winter tire package on the vehicles designated for sale in Canada.  The leasing community which represents the majority of premium and sporty brands of the new vehicles sold in Canada are in need of some innovative and creative solutions regarding winter tires and vehicle leasing.

It is no secret that Canadian weather patterns consist of several months of snowstorms, cold temperatures and snow-packed roads (perhaps parts of southern BC and Vancouver Island could be exempt from this winter statement but let’s agree that Canada is a distinct winter country).  It’s also very evident that the tires installed on the vast majority of new vehicles sold in Canada would be considered “summer” or “sport” tires despite the “all season” moniker that many tires have. In other words, the OEM tires that new cars are delivered with are not very effective in the snow, ice, and temperatures below 5 degrees C.

Jim Matthews, President of LeaseBusters stated, “I can’t speak for all new car buyers but I can certainly relay my experience with customers who take over leases.  The vast majority of lease transfer ‘Buyers’ want winter tires and actually try to negotiate incentives based on their desire for these tires, especially during the winter months”.  Matthews went on to say that, “winter tires are not only a fantastic safety feature for vehicles, they’re also a strategically sound lease investment since most original sets of tires will not survive the full term of the lease whereas a set of summer and a set of winter tires should last the full term of most leases”.

Here’s where the automakers and their dealership network can become trendsetters in the leasing community.  Automakers can use their extensive buying power to acquire above average grade winter tires, steel wheels or an upgraded alloy wheel that dealers can order as an optional feature for their vehicles.  OEM’s can also make these features a dealer installed items that can be ordered through the dealership’s parts department. Factory leasing companies can now authorize winter tire and wheel packages to become part of the new vehicle and thus be eligible to be part of a factory lease package (i.e. part of the MSRP, the residual value and the lease payment).

Winter tire and wheel packages should be part of leases but alas, after researching several OEM dealerships, not one automaker offers this factory option however until that happens, many dealerships offer winter tire packages through their financial services office at the time of sale.  This offer allows leasing customers to add a winter tire and wheel package to their lease payment and be protected throughout the term of the lease. As mentioned, this option will allow both sets of tires to survive the term of the lease and the package can be amortized for the full term of the lease using factory subsidized interest rates.  This is not a perfect solution but it is much better than customers scrambling to find their tire size in stock in mid-to-late November and paying a premium for winter tires.

Other significant advantages to the OEM solution winter tire package solution indicated by Matthews:  “Having winter tires as a factory option converts this option as relevant throughout the spring and summer market (when customers aren’t thinking about the winter) and as importantly, it makes the lease more attractive in the lease-take-over marketplace and lastly, the winter tires can also be insured through the end of lease excess wear and tear protection that can be purchased at the lease’s inception”.

In the end, winter tire and wheel packages should become a mainstream factory option for all new cars sold in Canada.  It saves lives, lowers insurance rates, and reduces driver anxieties during winter driving; all pretty darn good reasons for the automakers to consider or reconsider this initiative.

2018 / 2019 New Car Best Deals Canada

The best car deal happens when you’re able to procure a vehicle that not only houses the best of features you want but also goes easy on your pocket. The choices are absolutely endless – new versus used; small or big; truck, sedan, SUV or van; whom to buy from; buying with financing, leasing or cash; base model or higher one; sufficient features or all the bells and whistles. To ensure you don’t get lost in this sheer expanse of options, zero in on what you want before setting foot in the car dealership.  

The internet has undeniably made things easier, but there are still some pitfalls that pockmark the car buying process, preventing even the savviest car shoppers from finding new car best deals in Canada. Everyone wants to pay the lowest price for the car that syncs with their vehicular needs and priorities and is cheaper to own in the long run. Nobody wants to fall prey to those unnecessary add-ons and hidden charges that can embitter even the sweetest bargain.

Investigate the manufacturer’s incentives!

The key to locating the best car deals in Ontario is to be a well-informed and more importantly, a smart shopper who, beyond the regular intricacies involved in the process, is mindful of the manufacturer’s incentives relative to that vehicle. Some dealers might try to lull you into clinching a deal by calling it a special discount from ‘their’ office or in certain instances, they might even skip it altogether to mention in order to stretch their profit margins. Remember that the manufacturer’s incentive is up for grabs for one and all who intends to buy that vehicle. So, make sure your negotiation with the dealer starts only after subtracting the applicable incentives.

Be it a 4-door luxurious sedan for city driving or a robust pick-up truck to accompany you to off-road trips, you can avail a certain amount of incentives on every type of vehicle.

Negotiate the total car price, not the monthly installment!

While financing the vehicle, it’s easy to sway away by the smaller chunks of monthly payments while forgetting how even a slight change of $20 or $50 can quickly add up to thousands of dollars over the lifespan of the car. Also, comparing different dealerships based on the monthly payments is not a piece of cake, particularly if you’re a first-time buyer with a vague understanding of the industry’s ways and means. You may be looking at diverse down payments and maturities. You don’t have to go through all that since all dealerships are obligated to present customers with a clear-cut advertised lease or financing rate from the manufacturer. This means the dealer with the best total price will be the one that can get you the best bargain, regardless of whether you choose to lease or finance the vehicle. The total car price is inclusive of all the fees and taxes.

Know when to research!

The timing is of great essence and can make a huge difference. Here are a few tips to help you snap great new car deals in British Columbia (BC) or other provinces in Canada:

  • Starting of the month: When many manufacturers are launching special discount offers for that particular month.
  • New model year: When dealerships are trying to make room for the latest models by getting rid of previous ones.
  • End of the month: When many salesmen and dealers are eager to add more sales to their overall sales quota – an opportunity for potential buyers to chance upon the lowest price points.
  • End of the year: When car manufacturers proffer significant discounts and incentives to draw in buyers so as to fulfill their yearly sales targets.

Though these times can’t always guarantee a good deal, they are generally preferred by experienced shoppers to find cars within their budget.

Know the related glossary to see what you’re getting into!  

When scouring the dealership’s inventory at their lot or via online, bear in mind that they are not restricted to only what they have in the stock at that time. Most dealers keep at least a few of every model that the car manufacturer proffers.

It’s good to test the waters before diving right into a deal. Spend some time to grasp basic pertinent terms and things that will go a long way when you are trying to scoot the best new car deal in Quebec:

  • Trims: A trim (or grade as it is sometimes referred to as) is a different version of a model and often has different features such as seat material and engine size, and marginally different price. For car models that give various trim choices, manufacturers often provide 3 or 4 versions. For example, the 2018 Toyota Prius is available in 7 trims/configurations, with price and features varying slightly as you navigate from one trim to the other.
  • Options: Each model and trim has a host of optional features such as GPS navigation system and sunroof. The cost of integrating such features has to be taken into account while setting a budget for your new car.
  • Custom Build: If you want to make a custom build version of a specific car model, you can do that by talking to a dealer who will then order it from the manufacturer on your behalf.

For obvious reasons, it’ll take longer to obtain a custom-built car than the one you choose from the existing stock at the dealership.

Avail a Dealer Invoice Report!

Can’t afford the time to keep an eye on the manufacturer’s website, dealership, or print ads around-the-clock to luck into the best car deal?

Car Cost Canada’s dealer invoice report is exactly what you need. It will entail an easy-to-understand breakdown of the total car price which will firm up your negotiation, along with an ability to compare different car models that fall within your price range. With everything at one place, all you need to do is to select your model and trim level.

Not sure how this dealer invoice report by Car Cost Canada can lead you to your favourite car, at a much lower price? Get a gist by requesting for a free report. No more awkwardness in face-to-face negotiations now!

Contact Car Cost Canada professionals for more information!

Things to Consider When Deciding Whether to Lease or Finance a Car

Trying to choose between leasing and buying (also known as financing) a car can be a tough decision to make. Both options have pros and cons, and determining which is the better option for you can be made easier by doing a simple comparison.

Checking out a free dealer price report from CarCostCanada can also help make the decision easier, as the report outlines what rates you can get on the car you want for both leasing and financing. You can also find some great new car deals in Canada on the reports, as they highlight both advertising and unadvertised incentives. Keep reading while we break down some things to consider when trying to decide between leasing and financing a car.

Leasing

Ownership: When you opt for leasing, you don’t actually own the car. You get to use it until the lease is up, and then you have to return it. Most leasing agreements allow you to buy the car at the end of the lease if you decide you want to keep it.

Up-front costs: In terms of leasing, up-front costs commonly include the first month’s payment. They often, depending on the lease agreement, also include a refundable security deposit, an acquisition fee, as well as other tax and registration fees.

Monthly Payments: Monthly lease payments are more often than not a lot lower than financing payments due to the fact that you’re paying for the vehicle’s depreciation during the lease term.

Early Termination: If you want to end you car’s lease early, you will be charged a fee to do so. Sometimes a dealer may decide to purchase the car from the leasing company as a trade-in, which would mean you wouldn’t have to pay the fee, but it’s not often that this happens.   

Vehicle Return: Once the lease has ended, returning the vehicle is very easy. You bring the vehicle back to the dealer, pay any end-of-lease costs, and walk leave. If you wish, most lease agreements give you the option to buy the car after the lease has ended.

Future Value: When leasing, the future value of the car won’t affect you financially, but this also means that you won’t have any equity in the vehicle.

Mileage: A majority of lease agreements will feature a limit on the number of miles you can drive. Usually this is between 12,000 to 15,000 per year, though you can negotiate a higher mileage limit if you believe you’ll be driving more than that. If you go over the limit you will have to pay a fee for exceeding your limits.

Excessive Wear and Tear: If any damage occurs to the vehicle while under lease, you’ll be held responsible and will have to pay extra for exceeding what is considered normal wear and tear. What is considered normal wear and tear will be discussed with you when you first sign the lease.

End of Term: Most leases last 1two to three years, and once it is up you have the option to finance the purchase of the car, or lease or buy a new car.

Customizing: Usually you are not able to customize the vehicle while under lease, because you have to return it in a condition that the dealership can resell. Any custom parts or modifications that have been added will be removed. If there is any residual damage from removing modifications, you’ll have to pay to have it fixed or you’ll need to file an insurance claim and pay a deductible.

Financing

Ownership: One of the perks with financing is that once the loan is paid off you own the vehicle and can keep it as long as you want.

Up-Front Costs: In terms of financing, up-front costs include the either cash price (if you are buying it outright) or a down payment, taxes, registration, and other fees.

Monthly Payments: Monthly loan payments are typically more expensive than lease payments because you’re paying off the entire purchase price of the vehicle, as well as interest, taxes and other fees.

Early Termination: If you decide to get rid of your car before the loan is paid off, you can usually either sell or trade in your vehicle. Any money from the sale can be used to pay off the existing loan balance.

Vehicle Return: When you decide it’s time for a new car, you’ll have to deal with selling or trading in your car on your own.

Future Value: The vehicle is going to depreciate, but its cash value is yours.

Mileage: Unlike leasing, when you finance your vehicle you’re able to drive as many miles as you want. You should keep in mind that the higher the mileage the lower the vehicle’s trade-in or resale value will become.

Excessive Wear and Tear: While you don’t have to worry about wear and tear, you should keep in mind that it lowers the vehicle’s trade-in or resale value when you’re looking to get a new car.

End of Term: Once you reach the end of the loan, you don’t have to make any further payments and you have built equity to assist in paying for your next vehicle.

Customizing: The vehicle is yours, so you can customize as much as you please.

Whether you decide to lease or finance your next new car, make sure to 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!