Honda Canada vice-president of sales and marketing Dave Gardner concedes that at least some of the “negatives” dumped upon the latest Honda Civic were “deserved.”
Now, in the car business there’s not much about bad car reviews that deep discounts can’t fix – at least in the short term, and at least as long as the auto maker in question is willing to swallow profits or even absorb losses in order to move the metal.
Which brings us to that very Honda Civic. It is moving off dealer lots in a big way this year and discounting is at least part of the story: an $18,940 Civic LX sedan with automatic transmission is being offered to cash buyers with $1,500 factory-to-dealer rebate. Honda also has in play a $500 factory-to-consumer rebate.
It’s not clear from carcostcanada.com whether or not the $500 offer can be “stacked” with the $1,500; consult your dealer. It is clear, however, that the consumer rebate of $500 can be combined with a 1.99 per cent finance rate for up to 84 months, or even a 0.99 per cent lease rate for 24 months.
Putting money on the hood, in the trunk or in the glove box is a sure way to generate consumer interest. And it’s certainly working for Honda and its Civic. According to DesRosiers Automotive Consultants, Civic sales in Canada are up 22.2 per cent on the year.
“The Honda Civic (plus 24.1 per cent/4,470 units) once again topped Canada’s passenger car sales charts in July, besting all comers in the compact-dominated top 10 rankings,” says DesRosiers in a recent note to clients.
Year-to-date (YTD) through the end of July, Honda had sold 36,627 Civics, versus 29,904 for the No. 2 Hyundai Elantra. Elantra sales are up just 2.9 per cent. Honda has no shortage of Civics to sell, now that its plants are up and humming at full capacity. Hyundai officials, on the other hand, say they struggle to get the factory to deliver enough Elantras to meet demand.
With supply constrained and demand strong, it’s no surprise to see from carcostcanada.com that Hyundai has only a zero per cent financing offer for 48 months on the Elantra – unless you are a buyer with a disability who qualifies for a $500 “mobility” discount.
Another compact car charging hard up the sales chart is the Toyota Corolla. Corolla sales are up 16.1 per cent on the year (25,049). Toyota, like Honda, is no longer suffering factories unable to produce at full capacity, now that the earthquake, tsunami and flooding crises of last year are in the rear-view mirror.
That said, Toyota Canada has a tidy $2,000 factory-to- consumer rebate on the hood of the Corolla. Buyers may be able to wrangle even more discounts out of their Honda or Toyota dealer, though the profit margin on both cars runs at about 6.5 per cent, leaving little room for the dealer to dicker on the sticker price.
Deals of the Week also likes the $5,000 rebate available on the $53,350 Infiniti FX35 crossover utility. The FX is a racy-looking tall wagon and is good value with this offer.
Speaking of crossovers, Ford Edge sales were up a stunning 44.1 per cent last month, which suggests a push is on from Ford of Canada. Here it is: on a $39,999 Edge Limited with all-wheel drive (AWD), Ford has $3,250 factory-to-dealer offer in play and it can be combined with financing at 5.79 per cent up to 60 months and, reports carcostcanada.com, “Employee Pricing” is worth another $3,375 discount.
In all instances, check with your dealer for all the details, especially now with sales offers in flux as summer rolls into the fall. Today, and as per usual, Deals of the Week obtained pricing information from carcostcanada.com, among other sources. Consult your dealer for all the details.
2012 Ford Edge Limited AWD
- MSRP: $39,999
- Freight, dealer prep, air conditioning tax: $1,650
- Dealer discount (estimated): $1,400
- Factory discount: $3,250 (Delivery Allowance factory-to-dealer rebate)
- Factory discount: $3,375 (Employee Pricing Discount factory-to-dealer rebate)
- Taxable subtotal: $33,624
- Total price with 13 per cent HST: $37,995.12
- 5.79% financing for up to 60 months
2012 Infiniti FX35 Premium AWD
- MSRP: $53,350
- Freight, dealer prep and air conditioning tax: $2,095
- Dealer discount (estimated): $2,400
- Factory discount: $5,000 (Non-stackable Merchandising Dollars factory-to-dealer rebate)
- Taxable subtotal: $48,045
- Total price with 13 per cent HST: $54,290.85
2012 Toyota Corolla CE auto sedan
- MSRP: $16,450
- Freight, dealer prep, AC tax: $1,565
- Dealer discount (estimated): $450
- Taxable subtotal: $17,565
- Total price with 13 per cent HST: $19,848.45
- Factory discount: $2,000 (Non-stackable Trading Dollars factory-to-dealer rebate)
2012 Honda Civic LX auto sedan
- MSRP: $18,940
- Freight, dealer prep, AC tax: $1,595
- Dealer discount (estimated): $600
- Factory discount: $1,500 (Non-stackable Trading Dollars factory-to-dealer rebate)
- Taxable subtotal: $18,435
- Total price with 13 per cent HST: $20,831.55
Pricing information source: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.