The benefits of brand loyalty

More than three quarters of automotive brands in Canada currently offer loyalty incentives to entice existing customers.

To qualify, customers must have someone in their household who owns, finances or leases a vehicle of the same brand at the time of the new-vehicle purchase. Most auto makers extend additional discounts to those who make a return purchase with cash rebates or finance and lease-rate reductions, which can be typically applied in addition to existing incentives available to the general public.

It pays to be loyal when shopping for a new car, as these incentives can make great deals even greater as evidenced in our favourite offers this week.

2017 Volvo XC60

Volvo commands a loyal following. The auto maker won the "most improved conquest percentage" award from market research firm IHS, with more than 27-per-cent increase in brand sales volume in 2016.

All-new models, including the V90 and V90 Cross Country, were unveiled at the Montreal and Toronto auto shows earlier this year. As well, a redesigned 2018 XC60 will arrive this fall. To further reward loyal customers, cash-purchase customers can take advantage of up to an additional $2,000 cash incentive, while finance and lease customers qualify for up to a 2-per-cent rate reduction, depending on the model.

MSRP: $50,800

Manufacturer incentive: $9,000

Loyalty rebate: $1,000 for cash purchases

Estimated dealer discount: $1,250

Freight, PDI, government fees: $2,155

Cash purchase price before tax: $41,705

• Finance for 60 months at zero-per-cent interest for $880 a month including tax (includes a loyalty rate reduction of 0.9 per cent, $5,000 manufacturer incentive and assumes zero down payment).
• Lease for 48 months at 0.9-per-cent interest for $685 a month including tax (includes a loyalty rate reduction of 1 per cent, $5,000 manufacturer incentive, assumes 20,000-kilometre allowance and zero down payment).

2017 Audi A5

Audi has been a key player in the luxury market over the past three decades, competing alongside BMW and Mercedes-Benz, and its loyal customers have come to expect cutting-edge technology and design from the company.

This year, Audi revamped many popular models in its lineup, including the Q5 and A5. All-new models will also be introduced. Audi is offering up to $2,000 in loyalty incentives on cash purchases, while finance and lease customers benefit from up to a 1-per-cent rate reduction, depending on the model.

MSRP: $49,200

Manufacturer incentive: $7,500 (as compared to $6,000 in February)

Loyalty rebate: $1,000 for cash purchases

Estimate dealer discount: $1,500

Freight, PDI, government fees: $2,235

Cash purchase price before tax: $41,435

• Finance for 60 months at zero-per-cent interest for $865 a month including tax (includes a loyalty rate reduction of 0.9 per cent, a $4,000 manufacturer incentive and assumes zero down payment).
• Lease for 48 months at zero-per-cent interest for $572 a month including tax (includes a loyalty rate reduction of 0.9 per cent, a $4,000 manufacturer incentive, assumes a 20,000-annual-kilometre allowance and zero down payment).

2017 BMW X3

Having celebrated its 101st birthday on March 7, German auto maker BMW is also one of the oldest in Canada. BMW's sales growth outpaced its leading luxury rival Mercedes-Benz in 2016, with sales increasing by more than 8 per cent. BMW customers have come to expect distinguishing features on every Bimmer purchase, including iconic kidney grilles, unmistakable BMW headlights and an engaging driving experience.

Return customers who purchase or lease a new BMW can take advantage of up to $2,000 in loyalty incentives or a rate reduction of up to 1 per cent on finance or lease contracts, depending on the model.

MSRP: $46,050

Manufacturer incentive: $1,500

Loyalty rebate: $1,000

Estimated dealer discount: $1,500

Freight, PDI, government fees: $2,385

Cash purchase price before tax: $44,435

• Finance for 60 months at 1.9-per-cent interest for $878 a month including tax (includes a $1,500 manufacturer incentive and $1,000 loyalty rebate).
• Lease for 48 months at 2.9-per-cent interest for $657 a month including tax (includes a $1,500 manufacturer incentive and $1,000 loyalty rebate, assumes a 20,000-annual-kilometre allowance and zero down payment).

2017 Mitsubishi RVR

Mitsubishi includes a 10-year/160,000-kilometre limited powertrain warranty and five-year/100,000-kilometre limited warranty with every new vehicle. The design of the RVR was refreshed for the 2016 model year and sports the signature "dynamic shield" front fascia design.

Mitsubishi is offering up to $1,000 in a loyalty rebate available to cash, finance and lease customers, in addition to existing manufacturer rebates, depending on the model.

MSRP: $26,498

Manufacturer incentive: $1,500

Loyalty rebate: $750

Estimated dealer discount: $850

Freight, PDI, government fees: $1,840

Cash purchase price before tax: $25,238

• Finance for 60 months at zero-per-cent interest for $504 a month including tax (includes a $750 loyalty rebate and assumes zero down payment).
• Lease for 48 months at zero-per-cent interest for $383 a month including tax (includes a $750 loyalty rebate, assumes a 20,000-annual-kilometre allowance and zero down payment).

Andrew Tai is chief executive of Unhaggle.

Manufacturer incentives and pricing calculations are based on Ontario customers and subject to availability of inventory. Dealer discounts shown are estimates for illustrative purposes only, may vary by region and are given at the discretion of individual dealers. Please note that while every effort is made to ensure the information above is accurate at the time of publication, pricing, incentives and discounts are subject to change or discontinuation at any time. Consult your local dealership for details.