Go to the Globe and Mail homepage

Jump to main navigationJump to main content

2010 Honda CR-V EX-L (Honda/Honda)
2010 Honda CR-V EX-L (Honda/Honda)

Deals of the Week

Deals of the Week: Prius, Mustang, Honda CR-V and Hyundai Tucson Add to ...

This time around, Deals of the Week is taking a look at vehicles for first-time new car buyers - buyers who might have had one, two, even several older rides, but have reached the point where repairing and maintaining a used vehicle has become a nuisance.

So it's into the new car market for these buyers. We went looking for some insights into these first-time new buyers, looking for some guidance in creating a list of four suitable vehicles.

More Related to this Story

Seeking help, we turned to the Maritz organization. It supplies dealers and manufacturers with marketing research based on detailed and extensive studies. Maritz notes that while first time new buyers represent just 13 per cent of the total new vehicle market, this group sets trends and in general is a tough sell.

2011 Porsche Cayenne
Searching for a new vehicle? Our Globe Drive car search makes it easy to track down the best vehicle for you



"Being a younger buyer in the early part of their earnings curve, cash is a tight commodity. They are looking for a reasonably priced vehicle that offers value and peace of mind," notes Maritz in a report to clients.

Indeed, first time new buyers typically are younger, more likely to be single and have a post-secondary education. Their household income is lower than the market average, primarily a function of age and experience. These buyers are active in sports and other physical activities. And they want style and value at a low price.

"Things like fuel economy, rebates, incentives, durability, warranty and exterior styling are significantly more important to them than their repeat buyer brethren," adds Maritz.

These first-timers are also more concerned about the environment and fuel economy. They are more likely to consider alternative forms of energy and so-called "green" technologies -- hybrid drive trains and electric vehicles.

Maritz says these buyers are more than willing to shop aggressively, looking at many competitive vehicles.

"At the same time, they are less satisfied with their shopping experience and less likely to recommend their salesperson, dealer, finance source or manufacturer's product," notes Maritz. "Basically, they're harder to please. There is less brand loyalty in this group and they are more likely to switch to a brand that offers them the features desired at the right price.

With all that in mind, we've picked for deals that might be suitable for a cash-careful buyer who thinks about the environment and fuel economy and leads an active lifestyle. We've also picked vehicles with excellent dependability. All the models here finished top three in their respective segments in the last J.D. Power and Associates Vehicle Dependability Study.

As usual, Deals of the Week obtained pricing information from www.carcostcanada.com.

Compact Multi-Activity Vehicle: Honda CR-V EX-L

2010 Honda CR-V LX 4WD

MSRP: $28,290

Freight, dealer prep, air conditioning tax: $1,690

Dealer discount (estimated): $1,000

Factory discount: $3,000 (non-stackable trading dollars factory-to-dealer)

Taxable subtotal: $25,980

Total price with 8 per cent PST and 5 per cent GST: $29,357.40

Note: Honda is also offering a 0.9 per cent finance rate for 36 months or 1.9 per cent for 48 months

2010 Hyundai Tucson

2010 Hyundai Tucson GL AWD

MSRP: $26,699

Freight, dealer prep: $1,860

Dealer discount (estimated): $750

Factory rebate: $2,400 (factory-to-dealer on cash purchases)

Taxable subtotal: $25,409

Total price with 8 per cent PST and 5 per cent GST: $28,712.17

Factory discount: $500 (Clean Air Cash)

Government discount: $300 (Retire Your Ride)

Final price: $27,912.17

Note: Hyundai is also offering a 3.49 per cent finance rate for up to six years and it can be combined with other incentives.

Toyota Prius

2010 Toyota Prius

MSRP: $27,800

Freight, dealer prep and air conditioning tax: $1,520

Dealer discount (estimated): $750

Taxable subtotal: $28,570

Factory discount: $3,000 (non-stackable factory-to-dealer rebate)

Taxable subtotal: $25,570

Total price with 8 per cent PST and 5 per cent GST: $28,894.10

Note: Toyota is offering 1.9 per cent financing for three years.

2011 Ford Mustang coupe

2011 Ford Mustang

MSRP: $22,150 (Employee Pricing)

Freight, dealer prep and air conditioning tax: $1,450

Dealer discount (estimated): $0.00

Taxable subtotal: $23,609

Total price with 8 per cent PST and 5 per cent GST: $26,678.17

Factory discount: $1,000 (Recycle Your Ride)

Government discount: $300 (Retire Your Ride)

Factory discount: $1,000 (Targeted Loyalty Program)

Final price: $24,378.17

Note: 0.0 per cent financing is available for up to five years, but it's not stackable -- cannot be combined with other offers.

Pricing information source: www.carcostcanada.com. Calculations based on Ontario customers. Please note that while the information above is accurate at the time of publication, incentives are given at the discretion of individual dealers, and may be changed or discontinued at any time. Dealer discounts are negotiated with the customer on a case-by-case basis.

 

More Related to this Story

In the know

Most popular video »

Highlights

More from The Globe and Mail

Most Popular Stories