Kelly Blue Book (KBB), the U.S. pricing service, reminds us each year about the essence of a great deal – that the price you pay for a new car is only the beginning.
"New-car shoppers often are most concerned with the upfront cost of a vehicle; however, consumers would be wise to consider their purchase from a more holistic standpoint by examining the total cost to own a vehicle over the initial five-year ownership period," said Dan Ingle, vice president of vehicle valuations for Kelley Blue Book, on the release of KBB's annual list of 2013 models forecast in the United States to be bargains not just on delivery day, but five years down the road.
Many car shoppers overlook the biggest ownership costs – depreciation, fuel, financing, fees and insurance add up, month after month.
"The moral of the story? You can save a lot more money by simply choosing the right car than by working a great deal on the wrong car," says KBB with its list of this year's Five-Year Cost to Own Award winners.
The overall mainstream brand winner this year is Mazda, while for luxury cars, Toyota's Lexus brand is tops. KBB also has 22 different market segment winners to help guide dealmakers in their overall purchase decisions.
Of course, these are winners based on U.S. data, but the general thrust of the research can be usefully applied in Canada. Deals of the week went looking for four KBB winners that are also offered with healthy discounts.
The Hyundai Veloster won the compact class for KBB and in Canada is being offered with a $1,350 factory rebate on a $22,999 model with the Tech Package. The cash can be stacked, or combined, with a Smart Finance rate of 3.02 per cent for up to 96 months.
Lincoln's MKX ($47,650) won KBB's luxury mid-size crossover SUV class and in Canada it's on offer with a $5,000 sales sweetener for buyers who use their Ford/Lincoln dealer to facilitate a 73-month or greater finance term. In addition, Lincoln is offering free maintenance for 49 months or 80,000 km, whichever comes first.
Just a few weeks from now, Mitsubishi will land a new version of the Outlander mid-size crossover/SUV in dealer showrooms, but the outgoing version is a KBB category winners. The last of the 2013 Outlanders – including the one profiled here at $27,998 – is wearing a $2,200 discount on cash purchases. Mitsubishi Canada also has a number of other incentives in play, including a $1,000 discount on buyers who take advantage of 3.5 per cent financing for up to 84 months.
And then there's the Chevrolet Impala, KBB's full-size car winner. A completely new version of the Impala is coming shortly, which means the outgoing model is being heavily discounted. The $28,300 Impala profiled this week is on sale with a $2,000 discount that can be combined a $500 Auto Show bonus and other sweeteners.
Below you'll find the full list of KBB category winners, along with detailed numbers for this week's Deals of the Week. As usual, Deals of the Week obtained pricing information from www.carcostcanada.com, among other sources. Consult your dealer for all the details.
The 2013 5-year cost to own winners list:
Brand overall (mainstream): Mazda
Brand overall (luxury): Lexus
Subcompact car: Scion iQ
Compact car: Hyundai Veloster
Sporty compact car: Hyundai Veloster Turbo
Mid-size car: Hyundai Sonata
Full-size car: Chevrolet Impala
Compact crossover/SUV: Jeep Patriot
Mid-size crossover/SUV: Mitsubishi Outlander
Full-size crossover/SUV: Ford Explorer
Luxury compact crossover/SUV: Acura RDX
Luxury mid-size crossover SUV: Lincoln MKX
Full-size crossover/SUV: Lincoln MKT
Entry-level luxury car: Buick Verano
Luxury car: Lexus GS
High-end luxury car: Porsche Panamera
Mid-size pickup truck: Toyota Tacoma Double Cab
Full-size pickup truck: Chevrolet Silverado 1500 Regular Cab
Sports car: Ford Mustang
High-performance car: Ford Mustang GT
Hybrid crossover/SUV: Toyota Highlander Hybrid
Hybrid/alternative energy car: Honda Insight
Electric vehicle: Chevrolet Volt
2013 Chevrolet Impala LS
- MSRP: $28,300
- Freight, dealer prep, air conditioning tax: $1,650
- Dealer discount (estimated): $1,300
- Factory discount: $2,000 (Stackable Cash Delivery Allowance factory-to-dealer rebate)
- Taxable subtotal: $26,650
- Total price with 13 per cent HST: $30,114.50
- Factory discount: $500 (GM Auto Show E-Coupon Bonus)
- Final price: $29,614.50
2013 Mitsubishi Outlander ES 4WD
- MSRP: $27,998
- Freight, dealer prep and air conditioning tax: $1,550
- Dealer discount (estimated): $1,100
- Factory discount: $2,200 (Retail Cash Program factory-to-dealer rebate)
- Taxable subtotal: $26,248
- Total price with 13 per cent HST: $29,660.24
- Note: Can be combined with 3.5 per cent financing for up to 84 months.
2013 Lincoln MKX AWD
- MSRP: $47,650
- Freight, dealer prep, AC tax: $1,700
- Dealer discount (estimated): $1,200
- Factory discount: $5,000 (73-month or Greater Extended Term Finance Allowance factory-to-dealer rebate)
- Taxable subtotal: $43,150
- Total price with 13 per cent HST: $48,759.50
2013 Hyundai Veloster w/Tech
- MSRP: $22,999
- Freight, dealer prep, AC tax: $1,595
- Dealer discount (estimated): $700
- Factory discount: $1,350 (Dealer Cash factory-to-dealer rebate)
- Taxable subtotal: $22,544
- Total price with 13 per cent HST: $25,474.72
- Note: Can be combined with 3.02 per cent financing for up to 96 months.
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.