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Deals of the week: BMW 3-Series, Mustang, Hyundai Veracruz Add to ...

BMW Group Canada CEO Franz Jung isn't exactly sanguine about slapping on incentives to move the metal, but he is realistic.

"You must fight with the same weapons (as your competition), or you just don't sell," he says, referring to various low-interest loans, subsidized leases and even cash-back incentives that have taken hold in not just mainstream car buying, but also in BMW's own premium segment, too.

As auto analyst Dennis DesRosiers told the Globe's Greg Keenan this week, "In the luxury market, it's even more about product than in the mass market segments" and that's where BMW finds itself at a slight disadvantage to key German rivals Mercedes-Benz and Audi. BMW's lineup, taken as a whole, is slightly more aged than these other two, especially the 3-Series.

"It's a wonderful car, but it's in its seventh year," says Jung, who is now touting a new arrow in the BMW quiver: the 323 Luxury Edition which at $37,650 comes with some $3,500 in extra equipment - including automatic transmission, 17-inch alloy wheels, electric front seats, Bluetooth and USB compatibility, and an electric glass sunroof.

Both Audi's A4 and the Mercedes C-Class were given major updates fairly recently, thus the older 3-Series is competing at something of a disadvantage. The 3 is still a very well-engineered car, however. The challenge for BMW has to do with consumers in the premium segment who when their leases are up, often want to move into something different just to be different.

Thus, BMW is equipping the basic 3 with a package of extras to put some sizzle into the year-end sales effort. BMW Canada has also been offering a $3,000 factory-to-dealer cash rebate on the 3-Series. The sharp and aggressive buyer can now find BMW's bread-and-butter model at a very pretty price.

Deals of the Week took a look there and at and three other interesting offers. As usual, Deals obtained pricing information from www. carcostcanada.com. Here's a look.

2010 BMW 323i sedan

MSRP: $34,800 Freight, dealer prep, air conditioning tax: $2,095 Dealer discount (estimated): $1,200 Factory discount: $3,000 (factory-to-dealer rebate) Taxable subtotal: $32,695 Total price with 8 per cent PST and 5 per cent GST: $36,945.35

2011 Ford Mustang GT convertible

MSRP: $42,899 Freight, dealer prep: $1,450 Employee Pricing discount: $4,128 Factory rebate: $1,750 (Delivery Allowance) Taxable subtotal: $38,471 Total price with 8 per cent PST and 5 per cent GST: $43,472.23 Factory discount: $1,000 (Recycle Your Ride) Government discount: $300 (Retire Your Ride) Factory discount: $1,000 (Targeted Loyalty) Factory discount: $1,000 (Costco) Factory discount: $1,000 (Clublink) Final price: $39,172.23

2010 Hyundai Veracruz AWD Limited

MSRP: $47,299 Freight, dealer prep and air conditioning tax: $1,860 Dealer discount (estimated): $1,900 Factory discount: $5,000 (Stackable Cash factory-to-dealer rebate) Total price with 8 per cent PST and 5 per cent GST: $47,752.67 Factory discount: $1,000 (Clean Air Cash) Government discount: $1,000 (Retire Your Ride) Final price: $46,452.67

2010 Kia Magentis LX Premium

MSRP: $25,295 Freight, dealer prep and air conditioning tax: $1,555 Dealer discount (estimated): $1,000 Taxable subtotal: $25,850 Factory discount: $4,000 (Trading Dollars factory-to-dealer rebate; stackable) Taxable subtotal: $21,850 Total price with 8 per cent PST and 5 per cent GST: $24,690.50

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.

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