JEREMY CATO
From Thursday's Globe and Mail Last updated on Tuesday, Mar. 31, 2009 08:55PM EDT
The numbers tell the story. When Canadians shop for a crossover wagon, they go small.
According to DesRosiers Automotive Consultants, so far this year, three of the 10 best-selling light trucks are compact crossover wagons that try to look like a big SUV but really are tall station wagons well suited for family chores. (For tracking purposes, crossovers are lumped in with light trucks rather than passenger cars.)
The Ford Escape ranks No. 6 on the year, with nearly 25,000 sold through September. The Honda CR-V and Toyota RAV4 rank No. 8 and No. 9 respectively, with nearly 16,000 of each sold through the first three quarters of the year.
When one particular model is selling well, or when a model segment is looking healthy — as in compact crossovers — that means some other type of vehicle is likely struggling in some way. Thus, you will find great discounts on some larger crossovers; to clear out inventories, shoppers can find some very tidy deals on several very good larger crossovers.
Take the 2009 versions of GM's larger Chevrolet Traverse/GMC Acadia/Saturn Outlook trio. According to pricing service www.carcostcanada.com and other sources, the trio is available with a $6,000 factory-to-dealer incentive. So while the all-new Traverse lists for $35,260, smart and aggressive shoppers are looking at a "real" price well below $30,000.
There are some eye-popping bargains on smaller vehicles, too. These are the kind of fuel-efficient crossovers that have established themselves as staples of the Top 10 among light trucks in Canada.
Take the Escape. Significantly updated for 2009, it is being offered with a $2,000 factory-to-dealer boost, plus zero-per-cent financing for 36 months. The bonus money effectively brings the price of the least-expensive Escape down to an affordable $21,999, plus $1,300 for freight.
Crossovers are built on a car-like frame and are designed to get better fuel economy and provide better ride qualities than traditional truck-framed SUVs. They are a decent alternative for owners who need space and often tow modest-sized trailers.
And thanks to their lighter weight (because they're not based on a truck frame), larger crossovers such as the Traverse can get pretty decent fuel economy: 12.7 litres/100 km in the city and 8.4 on the highway. The similarly sized Chevy Tahoe gets 15.8 city/9.8 highway.
After years of rising fuel prices, Canadians have become wary of vehicles that consume any extra amount of fuel in any way. Thus, the greater popularity of compact crossovers.
On this point, the good news for buyers is that dealerships still have compact '08s on the lot even with the 2009 models rolling in. The result is some attractive deals on the compacts.
Consider the '08 Hyundai Tucson. The Tucson L in front-wheel-drive lists for $21,995, yet in some parts of Canada there is a $4,200 factory-to-dealer incentive and zero-per-cent financing for up to 60 months.
Leasers can also find attractive deals, thought they are less abundant. Chrysler and General Motors have scaled back on leasing amid plunging resale values for SUVs. This has opened the door for Ford and certain foreign auto makers to push lease offers. Hyundai Canada, for instance, has a 1.6-per-cent lease rate for 36 months on the Tucson L.
While we like some of the deals on smaller crossovers, many larger crossovers really stand out. They can be had for prices comparable to mid-size sedans. (And there are smaller ones selling for about what you'd pay for certain compact cars.) Most experts believe the discounts are likely to remain, though they will shift around depending on what's selling and what isn't. Why? For one thing, manufacturers keep introducing new crossovers. In a few weeks, for example, Toyota will launch its new Venza crossover.
Competition from a steady supply of new models coming into a marketplace that is grappling with economic issues, not to mention unpredictable fuel prices, means auto makers will continue to prime the pump with attractive deals designed to help retain market share.
And don't forget that while some crossovers lack discounts, they still go for reasonable prices. Honda Canada has dramatically limited deals on the Honda CR-V, despite aggressive moves from the competition, yet its sales are up 6.2 per cent on the year. The CR-V starts at $27,790.
For Toyota, sales of the RAV4 are up almost 29 per cent on the year. Toyota has added a four-cylinder version of the RAV4 for 2009, with a starting price of $26,500. The CR-V and RAV4 have the highest resale values in the segment and some of the best quality numbers.
Crossovers, the station wagons of the 21st century, are practical family vehicles and, while not cheap, are certainly affordable. Compared with SUVs, whose days are clearly over as big sellers in North America, crossovers are easier on gasoline, more comfortable and easier to enter and exit. Many think they are a lot prettier, too. here is plenty from which to choose. Today, there are more than 40 crossover nameplates for sale in Canada and many makes have more than one entry. Some of the newest offerings include the Ford Flex, Dodge Journey, Nissan Murano, Kia Borrego, Volkswagen Tiguan, Subaru Forester, Honda Pilot, the Venza and the Traverse.
But that list barely scratches the surface, which means shopping for a vehicle in this class can be difficult and confusing.
To make shopping easier, and to give potential buyers a sense of the deals out there, we have, with the help of www.carcostcanada.com, sorted through the latest information and come up with a list of bargains.
We're devoting the bulk of our efforts here to the larger crossovers, which are most remarkable for the richness of the deals.
Nonetheless, we've also included a handful of smaller crossovers with incentives that makes them all pretty attractive.
Whichever way you go, it's certainly a buyer's market.
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