The average transaction price of a new car rose only slightly (0.4 per cent) in 2012, to $26,755, notes a DesRosiers Automotive Consultants analysis of Statistics Canada data.
"New trucks (including all segments, from minivans to heavy duty) charted an average transaction value of $38,182 in 2012, down 0.6 per cent from 2011," adds DesRosiers in a note to clients.
With those numbers in mind, Deals of the Week went looking for attractive discounts on vehicles priced below the average thanks rich sales sweeteners. And Deals quickly came across something interesting on a hybrid sedan.
In the case of the Kia Optima Hybrid, a collection of factory sales sweeteners can bring a $29,995 sedan down to below the average 2012 transaction price, not including taxes and fees. Yes, that's fudging things a little, but consider what Kia is offering on the Optima Hybrid: discounts that add up to as much as $4,500. And with a little arm-twisting, the savvy customer might be able to wrestle a little more out to the dealer in the form of a dealer discount.
An additional note: we appreciate Kia Canada's attempts at pricing transparency. In sales releases and such, Kia lays out the offers on tap. For now, they include zero per cent financing on all 2013 models, "Don't Pay 60 Days" on select 2013 and 2014 models or a Clearout Customer Bonus of $500 off all 2013 vehicles. Those buying a 2013 Rio/Rio four-door hatch are eligible for a "3 Payments on Us" incentive. Want a Sorento SUV? You'll find up to $5,000 on select 2013 Sorento models.
Now for the small print: not all sales sweeteners can be "stacked," or combined, and there are some that apply only to cash purchases or financed buys. Kia has other restrictions, too. On top of that, take note of the model year on which offers are available. Kia has launched a seriously updated 2014 Sorento; the deals are on leftover 2013 models.
Deals also uncovered a $4,500 factory discount on a $26,999 Ford Mustang powered by a V-6 engine. This offer can be combined with another $1,000 rebate for existing Costco member and 5.49 per cent financing for up to 60 months. Thus, a Mustang stickered higher than the average ends up below the average for the buyer who can negotiate successfully for all the money on the table.
Or take a $34,720 GMC Terrain SUV (sport-utility vehicle). Two factory rebates – one before tax, the other after tax – and a $500 Auto Show Bonus hold the promise of driving down the price to something well below the average for light trucks in 2012. Moreover, these discounts can be combined with zero per cent financing for up to 72 months.
Finally, the Ram pickup. Even one of the least expensive Ram available – a 2013 Dodge Ram 2WD Regular Cab Tradesman – is on offer with a $7,000 factory-to-dealer rebate and 2.99 per cent financing for 36 months. Grab this deal and you'll have a pickup priced $12,000 below the light truck average in 2012.
As usual, pricing information here was supplied by carcostcanada.com, among other sources. Consult your dealer for details, including expiry dates for all offers.
2013 Kia Optima Hybrid
- MSRP: $29,995
- Freight, dealer prep, air conditioning tax: $1,555
- Dealer discount (estimated): $900
- Factory discounts: $1,000 (Eco-Bonus factory-to-dealer rebate); $500 (First-Time Vehicle Buyers Program); $2,000 (Kia Trading Dollars factory-to-dealer rebate on cash purchases); $1,000 (Kia 2013 Model Year Clearout Customer Bonus factory-to-dealer rebate)
- Taxable subtotal: $26,150
- Total price with 13 per cent HST: $29,549.50
2013 Ford Mustang V-6 Premium
- MSRP: $26,999
- Freight, dealer prep and air conditioning tax: $1,650
- Dealer discount (estimated): $700
- Factory discount: $4,500 (Ford Delivery Allowance factory-to-dealer rebate)
- Taxable subtotal: $23,449
- Total price with 13 per cent HST: $26,497.37
- Factory discount: $1,000 (Costco factory-to-customer rebate)
2013 GMC Terrain AWD SLT-1
- MSRP: $34,720
- Freight, dealer prep, AC tax: $1,650
- Dealer discount (estimated): $1,450
- Factory discount: $1,000 (GM Stackable Cash Delivery Allowance factory-to-dealer rebate)
- Taxable subtotal: $33,920
- Total price with 13 per cent HST: $38,329.60
- Factory discounts: $1,000 (GM Targeted Owner Loyalty Program); $500 (GM Auto Show E-coupon Bonus factory-to-customer rebate)
- Final price: $36,829.60
- Note: zero per cent financing for up to 72 months.
2013 Dodge Ram 2WD Regular Cab Tradesman
- MSRP: $26,995
- Freight, PDI and Tradesman package: $2,495
- Dealer discount (estimated): $900
- Factory discount: $7,000 (Consumer Cash Discount factory-to-dealer rebate)
- Taxable subtotal: $21,590
- Total price with 13 per cent HST: $24,396.70
- Note: 2.99 per cent financing for 36 months.
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.