Nissan Canada has just announced the 2011 Nissan Murano ($34,498 base) is going down in price by as much as $4,000. Deflation has started to hit the auto industry.
Nissan is hardly alone. Chrysler Canada, for instance, is going to announce a significant price reduction for the renovated Dodge Journey and Chrysler 200 (formerly Sebring) mid-size sedans. There are other examples, too.
And even if the actual sticker prices on many vehicles aren't being slashed, there is a lot of behind-the-scenes discounting going on. Reid Bigland, president of Chrysler Canada, says our muscular Canadian dollar is at work here. As the dollar goes up, real car prices should go down.
That's because all the 20 manufacturers in Canada manage their accounting in U.S. dollars. As the loonie gets stronger, car companies have more room to move down in their pricing.
Here's a warning: price reductions can look appealing and often are. But a lower sticker price for a 2011 does not necessarily mean a more attractive transaction price at the end of the deal. But be alert to manufacturers resorting to lower sticker prices intended to bring real pricing closer in line to what is actually happening in the marketplace.
The Murano is a perfect example. The 2010 version was (and is, if you can find any leftovers on dealer lots) packaged with a $6,000 stackable factory-to-dealer rebate. That 2010 Murano deal can then be combined with finance or leasing offers (see below). The bottom line: even with the 2011 price reduction, the 2010 Murano is a better deal by several thousand dollars.
Here's a closer look at these two Murano deals, plus two other interesting offers. As usual, Deals obtained most pricing information from www.carcostcanada.com, though for this week other sources were also used. Here's a look.
2011 Nissan Murano S AWD
MSRP: $34,498
Freight, dealer prep, air conditioning tax: $1,680
Dealer discount (estimated): $1,200
Factory discount: $0.0
Taxable subtotal: $34,978
Total price with 13% HST: $39,525.14
Note: 1.0 per cent Special Loyalty Rate Offer
2010 Nissan Murano S AWD
MSRP: $38,298
Freight, dealer prep: $1,660
Dealer discount: $1,550
Factory rebate: $6,000 (Stackable Cash factory-to-dealer rebate)
Taxable subtotal: $32,458
Total price with 13% HST: $36,677.54
Factory discount: $3,000 (Cash for Clunkers)
Note: Can be combined with 3.9 per cent finance or 4.9 per cent finance rate for five years and four years, respectively
2010 Dodge Ram 2500 SLT
(2WD 149-inch bed)
MSRP: $42,145
Freight, dealer prep and air conditioning tax: $1,500
Dealer discount (estimated): $2,000
Factory discount: $7,000 (Consumer Cash factory to dealer rebate; can be combined with Special Finance Rates of 0.0 per cent)
Taxable subtotal: $34,645
Total price with 13% HST: $39,148.85
2010 Toyota Camry LE I-4 automatic
MSRP: $25,310
Freight, dealer prep and air conditioning tax: $1,590
Dealer discount (estimated): $1,000
Factory discount: $2,000 (factory to consumer rebate on cash purchases)
Taxable subtotal: $23,900
Total price with 13% HST: $27,007
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.