It is harder to win a new customer than to retain an existing one. Auto makers have certainly bought into this mantra and currently more than three quarters of car companies (representing 25 brands) offer some form of loyalty incentive. This is compared to only 19 brands with loyalty incentives in September last year.
The loyalty incentives seem to be working. A recent study by IHS Automotive shows that automotive brand loyalty reached a 10-year high of 52.8 per cent in 2015. Noteworthy brands that experienced record loyalty included GM, Infiniti, Jeep, Land Rover, Lexus, Lincoln, Mazda, Mitsubishi, Nissan, Porsche, Subaru and Volvo.
In order to qualify for most loyalty incentives, you or someone in your household must own, finance, or lease an existing vehicle of that same brand. The reward for loyalty is generally either an additional cash rebate or a reduction in finance or lease rates. Here is a summary of all of the new vehicle loyalty incentives currently available across all brands.
This week's deals all feature loyalty incentives that make already great deals even better:
2015 Mitsubishi Lancer
Mitsubishi offers an industry leading 10-years/160,000 km powertrain warranty along with a 5-years/100,000 km limited warranty on its new vehicles. Mitsubishi calls them “The Best Backed Cars in the World” and perhaps that is one of the reasons Mitsubishi owners keep coming back. To reward their loyalty, Mitsubishi is offering a $500 loyalty rebate for the Lancer, which can be combined with a $2,000 incentive for cash purchasers or zero per cent interest financing for up to 60 months and an $800 incentive.
2015 Mitsubishi Lancer SE FWD CVT
- MSRP: $20,398
- Manufacturer incentive: $2,000
- Loyalty rebate: $500
- Estimated dealer discount: $400
- Freight, PDI, government fees: $1,735
- Cash purchase price before tax: $19,233
- Finance for 60 months at zero per cent for $385 per month including tax (includes an $800 manufacturer incentive applied before tax and a $500 loyalty rebate applied before tax)
2016 Land Rover Range Rover Evoque
We featured several deals on 2016 models last week that already had significant incentives. The 2016 Range Rover Evoque also falls into that camp with a $2,000 incentive for cash purchasers, which is noteworthy as the vehicle only arrived at dealerships in September. If you already drive a Jaguar or Land Rover, you’ll also receive an additional $1,500 incentive which is available whether you purchase in cash, lease or finance.
2016 Land Rover Range Rover Evoque HSE Dynamic
- MSRP: $59,990
- Manufacturer incentive: $2,000
- Loyalty rebate: $1,500
- Estimated dealer discount: $2,000
- Freight, PDI, government fees: $2,205
- Cash purchase price before tax: $56,695
- Finance for 60 months at 2.9 per cent for $1,189 per month including tax (includes a $1,500 loyalty rebate applied before tax)
2015 BMW X1
Loyal BMW drivers can benefit from up to $2,500 in manufacturer incentives on a new X1 (or up to $5,000 in B.C., Alberta, Saskatchewan, and Manitoba) which includes $1,000 in loyalty incentives for cash purchasers. If financing or leasing, a 0.75 per cent interest rate reduction is available in lieu of the cash purchase loyalty incentive. This means you can finance a 2015 X1 for as low as 0.15 per cent interest for up to 60 months.
2015 BMW X1 xDrive35i
- MSRP: $39,990
- Manufacturer incentive: $1,500 ($4,000 in BC, AB, SK, MB)
- Loyalty rebate: $1,000
- Estimated dealer discount: $1,200
- Freight, PDI, government fees: $2,230
- Cash purchase price before tax: $38,520
- Finance for 60 months at 0.15 per cent for $747 per month including tax (includes a $1,500 manufacturer incentive applied before tax and a loyalty rate discount of 0.75 per cent)
2015 Nissan Altima
Nissan’s loyalty incentive is only available to those that finance or lease a new vehicle through Nissan Canada Finance. However, with their finance and lease rates as lows as zero per cent, there are few that would pass on this offer. There is also a $3,500 manufacturer incentive available for cash purchasers or zero per cent interest financing for up to 60 months and a $750 incentive available on the Altima SV.
2015 Nissan Altima 2.5 SV
- MSRP: $26,998
- Manufacturer incentive: $3,500
- Estimated dealer discount: $1,000
- Freight, PDI, government fees: $1,835
- Cash purchase price before tax: $24,333
- Finance for 60 months at zero per cent for $500 per month including tax (includes a $750 manufacturer incentive applied before tax and $600 loyalty rebate applied after tax)
Andrew Tai is CEO of Unhaggle
Pricing and calculations are based on Ontario customers and subject to availability of inventory. Please note that while the information above is accurate at the time of publication, pricing, incentives, and discounts may vary and are subject to change or discontinuation at any time. Dealer discounts are estimates and may be given at the discretion of individual dealers. Consult your local dealership for details.
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