Globe Drive

You need information, lots of information, when you go shopping for a new vehicle. The more you have, the more likely you'll get the vehicle you really want at a good price.

And don't we all want a good price for a car we'll love for years? As Paul Timoteo, president of www.carcostcanada.com says, “You want to be emotional about the car you buy, but unemotional about the price you pay and how you pay for it.”

That's the whole point behind Deals of the Week in Globe Drive. Each week I'll get together with Timoteo and we'll pick outstanding deals you really need to know about and understand.

Our plan is to organize our choices into categories that make sense to Canadians: small cars, family cars, luxury car, prestige cars, sports/performance cars, convertibles, SUV/CUV/minivans (sport- and crossover utility vehicles), and general utility vehicle (pickup trucks, cargo vans such as the Ford Transit Connect, and the like).

We'll tell you what the deals are, why we picked them and the ins and outs of squeezing every penny out of the negotiation – hopefully with as little fuss and bother as possible for both you and the dealer.

For this week, Timoteo recommends the Chevrolet Malibu. I'm rounding out this affordable family car pick by adding the Ford Fusion and Toyota Camry to the mix.

The straight deal: You may be able to buy a new Chevrolet Malibu for less than $20,000 right now – especially if you are the current owner of a 1995-or-older General Motors vehicle, pay cash and belong to the Canadian Forces.

Background: The Malibu is just approaching what the auto industry calls the middle of its “product cycle.” That means it's been on sale in its current form for about two to three years. Generally this means that any early bugs have been completely ironed out.

Still, the Malibu has been a solid four-door sedan from the outset. As Timoteo points out, in 2008 the Chevrolet Malibu came in 3rd in the “Family Car” category of the Car of the Year Awards from the Automobile Journalists Association of Canada (AAJC).

The Malibu has won all sorts of other awards, too. In addition, the Malibu has a five-star crash test rating from the United States Government and Consumer Reports research says reliability is good.

The pricing story: According to pricing information from carcostcanada.com, in 2008 the MSRP (manufacturer's suggested retail price) of the base was $22,995. Chevy was not offering much in the way of discounting at the time; the car was too popular to need it.

Now, the MSRP is $23,995 for the 2010 Malibu. The sticker may have gone up, but your final transaction price should be less now than in 2008.

The Numbers:

• Base MSRP: $23,995
• Assume dealer markup on dealer invoice (8 per cent): $1,775
• Reasonable dealer profit (4 per cent): subtract $887 from MSRP
• Reasonable price: $23,108
• Cash Delivery Allowance: $2,500 deduction to $20,608
• GM scrap-it program (your 1995 or older car): $1,000 to $19,608
• Federal government scrap-it program (your ‘95 or older car): $300 to $19,308
• GM Loyalty Bonus (for some current GM owners): $1,000 to $18,308
• Canadian Forces bonus: $500 to $17,808

Bottom line: By putting together all the available GM and other incentives, you may be able to buy a fresh 2010 Malibu for as low as $17,808. That's a savings of up to $6,187 off the MSRP. Of course, buyers still have freight ($1,350) and taxes to include, as with all new cars.

The alternatives:

2010 Ford Fusion

2010 Ford Fusion SE ($22,988 MSRP): The Fusion has been significantly upgraded for 2010 and is now clearly one of the very best four-door sedans in North America.

Ford Canada incentives: Ontario Winter Safety package ($300); Canadian Forces ($500); Costco rebate ($1,000); Recycle Your Ride ($1,000).

2010 Toyota Camry XLE

2010 Toyota Camry LE ($24,900): The Camry is a perennial best-seller in Canada and for good reason. Reliability is very good, the resale value is very strong and the Camry is a safe and secure family car.

Toyota Canada incentives: Consumer Cash ($500).