Lease? Finance? Buy Outright? What’s the Best Way for ME to Buy a Car?

A vehicle is one of the largest purchases one makes, ergo, a significant amount of research should go into every aspect. From the make/model you have your heart set on to interior features to the total price of the vehicle; there are many factors that contribute to building, pricing, and purchasing the best vehicle for your needs. Because vehicles are a large investment, dealers, and banks alike, offer various payment options to suit your lifestyle. Leasing, financing, or purchasing a vehicle outright are the methods offered by the dealers when it comes to payment. Figuring out how you want to proceed with pricing will help you get that much further in purchasing your desired vehicle. Our Dealer Invoice Report can also help you ensure that, no matter what payment method you choose, you are getting the best deal on a new vehicle that Canada has to offer!

 

What are the differences between leasing, financing, and purchasing a vehicle outright?

 

All of these methods vary significantly to help suit the needs of as many individuals as possible. The key differences pertain to ownership of the vehicle and term payments.

 

Financing; albeit, the most popular means of paying for a vehicle, financing offers a good level of flexibility. Financing encompasses paying for the total price of the vehicle in denominations over a selected term. By the end of the financing term, you have complete ownership of the vehicle.

 

Leasing; leasing is a popular option for those who like to upgrade their vehicles frequently and aren’t doing copious amounts of driving. Similar to financing, leasing requires weekly, bi-weekly or monthly payments owing to the balance of the total lease. The main difference between financing and leasing is ownership; when leasing, you do not own the vehicle.

 

Buying outright; buying a vehicle outright is not as common as leasing or financing and is typically done when the cost or age of the vehicle does not meet the requirements of leasing/financing (more specifically, used vehicles). Although purchasing a brand new vehicle outright is not done as much as financing or leasing, it is the easiest method of payment as a surfeit of background checks (credit, employment, etc) are usually not required.

 

Is it a good idea to buy a car on finance?

 

As mentioned previously, financing is the most popular method of purchasing a vehicle. Financing a vehicle possesses the best attributes of leasing and buying outright, simultaneously; owning the vehicle whilst being able to pay in smaller sums. If you are planning on keeping your vehicle long-term, do a significant amount of driving, and don’t have the cash to pay in full (or the desire to part with such a hefty amount of money in one shot), financing is a viable option for you. Financing a vehicle also allows for more leeway when adding features to your vehicle. For example, if you wanted to add a sunroof to your vehicle, it could run you anywhere from $500-$2,000, however, when financing, you can discuss adding this feature to your vehicle at the time of purchase and break apart the cost. Instead of paying thousands outright, the cost of the upgrade is spread across your term, ergo, your sunroof will cost you a few extra bucks a month.

 

It’s important to note that financing comes with an interest rate contingent on your credit score, thus, you will be paying more for the vehicle that you would if you were buying outright. If you have excellent credit, expect interest rates to be on the lower, however, if you have poor or no credit, you could be paying upwards of 30%. It’s important to review your score to see what interest rate category you fall into. Our Dealer Invoice Report also aids with financing to help you get the lowest interest rate possible for your individual situation.

 

How does financing work? Financing can be a relatively easy process provided you have all the key information you need. The dealer will show you various payment terms based on the vehicle of your choice; the longer the term, the lower the weekly, bi-weekly, or monthly payments and vice versa. A typical term is 5 years or 60 months, but can be shorter or longer depending on your financial state and the year/make of the vehicle. The dealer will then require your financial information (credit score, credit history, letter of employment) and determine your interest rate based on these factors. Once the term, payments, and interest rates are worked out, you can opt to add any upgrades. When you obtain the vehicle, you are required to make your payments until the term is over, however, at any point, you can contribute money to lessen the term period or monthly payments. Giving a down payment can also lessen the monthly payments.

 

Pros

  • Payment terms and prices are flexible; you can opt for a longer term with cheaper payments or a shorter term with higher payments depending on your preference
  • Allows you to get a higher priced vehicle, if desired, without having to fork out a lump sum of cash
  • Upgrades can be added for low monthly payments

 

Cons

  • You are locked into a contract and failure to pay could lead to the loss of your vehicle
  • Loans typically come from the bank, meaning you are taking on a debt
  • The interest rate is added onto the full cost of the vehicle, depending on your credit score, it could amount to a significant increase in cost

 

Is it a good idea to lease a car?

 

Leasing is not as popular as financing a vehicle, but it does pose a lot of benefits. Similar to financing, leasing requires weekly, bi-weekly, or monthly payment for a fixed term, however, you are not the owner of the vehicle. You will be required to turn over the vehicle at the end of the lease or in some cases, the dealer may offer incentives for purchasing it post-lease. Leasing is a viable option for those who like to upgrade vehicles frequently as you are not fully committed to the vehicle. Most people lease for a 1-3 year period and upgrade thereafter.

 

If you are a city dweller and don’t typically do a lot of driving, leasing is a good option to consider. When leasing a vehicle, you are given a set amount of kilometres per year (extra charges apply should you go over) – if you do a small amount of driving, this shouldn’t be an issue. If there are any problems with the vehicle, they are typically covered by the dealer leasing you the vehicle (restrictions apply).

 

How does leasing work? Just like financing, the dealer works with you to find a term and payment plan based on your financial state and your desired vehicle. The cost is calculated based on the time frame and predictive depreciation of the vehicle; for example, if your lease term is 3 years and the car is expected to depreciate by 30% over the next 3 years, you will be paying for 70% of the vehicles total cost. Once your lease is over, you can opt to lease another vehicle or work with the dealer to purchase the vehicle you have been leasing at a lower cost.

 

Pros

  • You can upgrade your vehicle regularly without having to purchase in full
  • The rates are typically cheaper than those pertaining to financing
  • You don’t have to worry about selling/trading a vehicle when you are done with it

 

Cons

  • You do not own the vehicle, meaning you have to be especially cautious
  • You are given a fixed amount of KMs and if you go over them, the costs are high
  • Most leases aren’t offered past 3 years, meaning you have to commit to upgrading or purchase a vehicle thereafter

 

Is it a good idea to buy a vehicle outright?

 

Purchasing a vehicle outright is the most straightforward and easiest process out of the three, however, the issue with this is evident – if you don’t have the cash, you cannot buy the vehicle. Buying a vehicle outright minimizes the need for extensive paperwork (obtaining employment information, credit history, etc). Because you are not borrowing the money, the dealer is under the assumption that you accept the responsibility for the full payment, thus, credit history and other financial information is not required.

 

Purchasing a vehicle outright allows you to forego interest payments which will save you money in the long run. Our Dealer Invoice Report also contains cash incentives that can lower the price of the vehicle even more. Most dealers will accept our cash incentives with no issues because they are guaranteed to be paid on the sale. If you have the means to pay for a vehicle outright and don’t want to be locked into a debt/contract, consider doing so.

 

How does purchasing a vehicle outright work? This is the simplest of the methods and doesn’t require much. Discuss the model/make of the vehicle you want and bring forth any cash incentives you are eligible for. The dealer will then work out the best possible price, factoring your Dealer Invoice Report, incentives, desired add-ons, warranty, and taxes. Once you sign and make the payment, the vehicle is yours!

 

Pros

  • You are not locked into a contract nor do you acquire a debt
  • You forego the interest rates that come with financing
  • You fully own the vehicle; there is no worry about not being able to make the payments as there are none associated with the physical cost of the vehicle

 

Cons

  • Most new vehicles cost tens of thousands of dollars which can be difficult to pay all at once. You have to ensure you, not only have the funds to pay the full cost but doing so will also not leave you with nothing
  • If you want any add-ons or upgrades, these will have to be paid in full as well, either at the time of purchase thereafter
  • You are responsible for selling or trading the vehicle if/when you decide to do so

 

Deciding how you want to go about paying for your vehicle is contingent on your desire to own, your current financial state and how much you drive. Regardless of whether you want to lease, finance, or purchase outright, our Dealer Invoice Report can help you save thousands on your new vehicle!

 

Have you found the vehicle of your dreams? Contact us today and save big on the car YOU want!

2019 Car Infotainment Features That Will Forever Change the Way You Drive!

In 2019, the infotainment system in your car is as indispensable as the steering wheel. No, that’s not really an exaggeration!

The word “infotainment” is sometimes carelessly thrown around without preamble. So let’s first address; What does infotainment system mean?

In the automotive industry, an infotainment system (or In-Vehicle Infotainment -IVI) refers to in-car technologies that bridge the gap between entertainment and information for the driver and passengers. These typically include audiovisual interfaces, touchscreens, keypads, and the likes.

These systems have tremendously evolved since their inception, and though many people assume that this is a relatively new technological advancement, in reality, the first modern infotainment system as we’ve come to know them today was created as far back as 1980!

Buying a car with an infotainment system in Canada takes some doing. There are so many aspects that come together to make the magic happen; internet connectivity, smartphone compatibility, advanced driver assistance features, real-time traffic announcement broadcasts – and that’s just the tip of the iceberg.

Below, we’ve shortlisted the most sought after infotainment features in 2019 and the cars that epitomize these features to the max!

 

Apple CarPlay Connectivity

Any person who owns a smartphone in the 21st century can sympathize with this cause! By its own admission, Apple CarPlay is a smarter and safer way to connect your iPhone to your vehicle. This savvy feature lets you interact with your phone’s entertainment services through the vehicle’s in-built display.

In 2019, over 100 million people in North America alone own an iPhone. It’s easy to see why the automotive industry has gone all out to integrate this particular feature. An uninterrupted and user-friendly in-car iPhone connection is the golden ticket as far as most drivers are concerned. With Apple CarPlay, you can now make calls, receive and send messages and stream music seamlessly without ever having to take your eyes off the road.

Our Top 3 Picks With Apple CarPlay Connectivity

 

Android Auto Connectivity

Android isn’t about to relinquish the reins to its counterpart just yet. Android Auto ensures a smooth and seamless connection between your phone’s OS and the car. It comes with a sleek and intuitive interface, integrated steering wheel controls and phenomenal new voice actions.

And just like Apple, its primary focus is to reduce on-road distractions, especially in light of Ontario’s updated distracted driving laws in 2019 that penalize drivers for taking their eyes off the road to interact with a handheld device.

In order to make use of this feature, your phone will require an OS that runs at 5.0 (Lollipop) or higher. With Android Auto, you can interact with your phone’s maps, messaging, radio and music features at just the click of a button.

Our Top 3 Picks With Android Auto Connectivity

 

Navigation System

Scoring a car with a reliable and regularly updated GPS system isn’t a negotiation but a necessity. While en route, you expect your car to generate quick directions in real time, decipher the fastest route, inform you of changing traffic patterns while also taking into account certain driving preferences.

Depending on the brand, you can invest in add-on GPS packages that further simplify travel and navigation while implementing accident prevention assistance. It is estimated that road conditions in North America change by about 15% every year. You should be able to bank on a system that grants you updated access to millions of miles of roads, highways, streets, signages, traffic conditions, points of interest, restaurants, etc.

The reason we’ve decided to cover this aspect is due to the fact that a common question we get asked is, “Which car has the best navigation system?Innovative GPS systems come part and parcel with the following 2019 vehicles.

Our Top 3 Picks With Powerful Navigation Systems

 

Entertainment Services (Audio + Video)

An infotainment system won’t hold much water if it’s doesn’t have a cutting edge audiovisual interface. Ideally, this should offer a wide suite of connectivity services to access your favourite music, radio shows, and podcasts. It should also offer standard features such as being able to double up as a Wi-Fi hotspot, seamless touchpad controls and some form of rear-seat entertainment to boot.

 

Which car has the biggest touch screen? The all-new 2019 RAM 1500 has a whopping 12-inch touchscreen display. This is second to Tesla’s behemoth 17-inch display.

Another instrumental feature that aids your car’s infotainment is the acoustic system. Bose, Bang & Olufsen and Harmon Kardon are the three leading manufacturers of in-car speakers that deliver crisp, clear and three-dimensional surround sounds.

Below, we answer the most pressing question yet; What cars have the best factory sound system? The brands that deliver phenomenal acoustics in 2019 are Audi, Ford, and Lexus.

Our Top 3 Picks With Innovative AudioVisuals

 

Infotainment Systems in 2019 Are A Whole New Ball Game

Before you buy your next car, get a free dealer invoice report. That way you’ll be getting the best infotainment features while still saving thousands and thousands of dollars!

Exclusive rebates and certified dealerships are only a click away.

Your dealer invoice report is ready and waiting. Get it here.

 

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!