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Cato: Take a look at the list of the 10 best-selling cars in Canada. It's a collection of compact and subcompact cars: Honda Civic, Mazda3, Toyota Corolla, Ford Focus, Chevrolet Cobalt and so on.
Vaughan: Take a look at gas prices and you'll know why.
Cato: Yes, but then the Toyota Camry jumps out. Last month the Camry was the No. 6 seller in Canada, and for the year it is No. 7. A mid-size car, a whale of a one at that, swimming in a sea of automotive minnows.
Vaughan: Cato, your metaphor is pathetic, but I see where you're casting.
Cato: Oh, the horror of bad puns.
Look, the Camry is selling for a bunch of reasons, not least of which is the $3,000 Toyota Gas Card that jumps out as essentially a cash incentive to buy. In fact, it is a cash incentive. If you don't want the card, Toyota will give you the cash.
But interest rate deals — they're not worth the effort. Finance rates of 2.9 and 3.9 per cent for three- and four-year terms look pretty weak in this age of 0.0 per cent. The $3,000 handout, on the other hand, says a lot about what is going on with new car deals in Canada. It's all about show me the money.
Vaughan: Cato, that $3,000 takes the base price of a fuel-efficient, four-cylinder Camry to $22,900 from the retail sticker of $25,900. As an old sports reporter I know you'll understand when I say Toyota has the killer instinct; they've got the competition down and now they're ready to put them away.
Cato: Now that's a pathetic metaphor.
Vaughan: But look at the Power Information Network data below. The typical Camry leased in Canada comes with a $467 monthly payment, including all those awful taxes: GST and PST. The scoreboard tells the story.
Cato: Alright sports-boy, here's something that's not on the scoreboard: dealer mark-up. On the Camry it runs in the 9-10 per cent range, which means dealers have some room to move on price. They do not typically move much; Toyotas remain in high demand. But they'll move a little if you cross-shop carefully.
Vaughan: Cross-shop! Bingo! Cato that is such a good idea these days. The marketplace is awash in very good family sedans — the new Honda Accord, the Chevrolet Malibu, the updated 2009 Hyundai Sonata — with its newly lowered price — the Nissan Altima, Saturn Aura and on and on.
Cato: On and on to the Pontiac G6, Mitsubishi Galant, even the Subaru Legacy if you want an all-wheel drive family hauler. But this brings me back to my first point. The Camry stands out as the best seller in that group, too.
Vaughan: I believe I told you why: the price of a barrel of oil. Camry has a killer hybrid.
Yes, yes, there is a Malibu Hybrid and an Aura Hybrid, but that's it. If you want the best possible overall fuel economy in a family four-door for city driving, it is Malibu Hybrid, Aura Hybrid and Camry Hybrid.
Cato: Again, the Camry Hybrid is a stunning over-achiever. Last month Toyota Canada sold 1,016 Camry Hybrids — an increase of 91.3 per cent over May 2007.
Buyers today are acutely aware of fuel prices and because Toyota essentially owns the hybrid market, the Camry Hybrid is where they are going if they want that fuel-saving technology.
Vaughan: But there are those who sneer at the Camry as an overly big, dull-to-drive, plain white-bread sedan.
Cato: They don't seem to know how important economic issues are with buyers. The good fuel economy — hybrid or otherwise -- and $3,000 worth of free gas, or cash, add up to what it takes to make the Camry a best-seller and a solid deal.
2009 Toyota Camry
Buyer's Age Range:
- 16-34 years: 7.2%
- 35-54 years: 38.5%
- 55+ years: 54.3%
Gender ratio:
- Female: 40.5%
- Male: 59.5%
Type of sale:
- Cash/non-dealer financing: 54.2%
- Finance: 31.2%
- Lease: 14.6%
Most popular colours
- Silver
- Green
- Black
Vehicle price: $24,853 (does not include taxes, license or title fees)
Days to turn: 17
Trade ins: 41.9% (does not include lease returns)
Top three trade ins:
- Toyota Camry
- Honda Accord
- Toyota Corolla
Average monthly payments: (includes PST & GST)
- Lease (48 month term): $467
- Finance (60 month term): $450
Source: Power Information Network
