If you’re reading this, you’re probably looking for a deal. And while deals are important, it’s also worth remembering that a good dealership service department also sells cars – and savvy buyers factor service into their buying decision, says new research by J.D. Power and Associates.
That is, customers who rate dealer service a 10 out of 10 are more than three times as likely to return to buy a new model at that particular dealership than those who rate service an 8 or 9. And plenty of consumers find dealer service less than perfect .
Indeed, by the time a vehicle is eight years old, new vehicle dealers have lost more than half the battle for the hearts (and wallets) of customers looking to service vehicles they bought new, notes J.D. Power and Associates in a research note. Call them service defectors.
This is a big issue. Sixty per cent of a dealer’s potential service customers have defected to some other aftermarket operation by the time the vehicle is eight years old. This process starts in earnest at about the time a new vehicle has aged four years, when the typical new car warranty expires.
Note that by the time a vehicle hits 6.1 years of age, owners are ready to buy something new or spend serious maintenance money on an aging vehicle, says J.D. Power, adding the average age of a trade-in is 6.1 years. The conclusion: many owners are making the decision to purchase a new vehicle when their current vehicle is between 5 and 8 years old. Some buy, others get work done at an aftermarket shop.
So if a marketplace awash with deals is calling you, don’t forget about the service side of the buy. Service matters, and it will matter more and more as your new vehicle ages.
That said, the deals we’ve picked for this week are pretty interesting. General Motors has slapped on a $6,000 factory incentive on the LaCrosse sedan and when combined with other offers, hard-bargaining buyers might nail down total savings approaching nearly $10,000. And parts of those discounts can be combined with cut-rate financing.
Deals of the Week also likes the $5,000 on an Audi RS 5 coupe, and a $750 flash incentive on the Kia Sorento SUV can be combined with a $2,500 discount. Even Volkswagen has $1,500 on Golf hatchback.
Deals of the Week consulted with www.unhaggle.com, www.carcostcanada.com and other sources on these offers. As usual, pricing information here is subject to change and dealer discounts vary, so consult your dealer for all the final details, including expiry dates for all offers.
2013 Buick LaCrosse 4 door Sedan Ultra Luxury FWD w/1SR
- MSRP: $44,995
- Freight, dealer prep, air conditioning tax: $1,650
- Dealer discount (estimated): $2,000
- Factory discount: $6,000 (Stackable Cash Delivery Allowance factory-to-dealer rebate)
- Factory discount: $1,500 (GM Targeted Owner up to $1,500 Loyalty Program)
- Taxable subtotal: $37,145
- Total price with 13% HST: $41,973.80
- $6,000 discount available with 2.99% financing for up to 84 months
2013 Audi RS 5 2 door Coupe
- MSRP: $77,000
- Freight, dealer prep and air conditioning tax: $2,095
- Dealer discount (estimated): $3,200
- Factory discount: $5,000 (Alternative Cash Cash Program factory-to-dealer rebate)
- Factory discount: $1,000 (Audi Loyalty Cash factory-to-consumer rebate for eligible Audi owners only)
- Taxable subtotal: $69,895
- Total price with 13% HST: $78,981.35
- 3.90% financing is available, but not with cash incentives
2014 Kia Sorento AWD 4 door V6 auto LX
- MSRP: $31,495
- Freight, dealer prep, AC tax: $1,765
- Dealer discount (estimated): $1,000
- Factory discount: $2,500 (Kia Prime Rate Credit factory-to-dealer rebate)
- Factory discount: $750 (Flash incentive available to Sept. 30)
- Taxable subtotal: $29,010
- Total price with 13% HST: $32,781.30
- Cash incentives available with 3.69% financing for up to 60 months
2013 Volkswagen Golf 5 door auto Wolfsburg Edition
- MSRP: $25,375
- Freight, PDI, AC tax: $1,495
- Dealer discount (estimated): $750
- Factory discount: $1,500 (VW Dealer Cash non-stackable factory-to-dealer rebate)
- Taxable subtotal: $24,620
- Total price with 13% HST: $27,820.60
- 0.0% financing available for up to 60 months cannot be combined with factory discounts
Pricing information source: unhaggle.com and 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. Where noted, “dealer discounts” are negotiated with the customer on a case-by-case basis. Unhaggle Savings are actual discounts received by Unhaggle customers.