Car dealerships at the Mississauga auto mall (2013 file photo).J.P. MOCZULSKI/The Globe and Mail
Every time a factory spits out a new car, the auto maker books it as "sold" for accounting purposes. Such are the ways of accountants.
Of course, unless that car is a custom order complete with deposit or a pre-payment, it's not really sold at all. All those cars and light trucks you see piled up on dealer lots or sometimes in fenced-off fields or parking lots are considered sold by the car company, even though consumers haven't put down a penny.
This helps explain the urgency to move the metal that many car companies and their dealers are feeling at this time of year. The leftover 2014s need to go not just to make room for the 2015, but also to put some money into the hands of dealers who own that unsold inventory and want to move it – fast, before interest charges eat up profits.
To help dealers , car companies join in with incentives and various sales sweeteners – from 50th Anniversary sales to guaranteed $0.99/litre gas. You really will find some eye-popping money in play, too.
This being September, Deals of the Week went looking for clearout offers on 2014s.
"The difficulty is finding available 2014 models because they are being swept up or paid out faster than they (the auto makers) can release the 2015 versions," says Unhaggle.com CEO Andrew Tai.
Indeed, if you're shopping for the best deal on an outgoing 2014, you are likely looking at taking something sitting on the lot today – or off some storage acreage. Your choices in terms of colour, model and equipment might be limited.
On the other hand, dealers and car companies are motivated to move existing inventory. This means they are always amenable to fair and reasonable offers that for you, the consumer, represent at times a steal.
A 2014 Kia Rio hatchback, for instance, is wearing a $3,250 factory incentive and you should be able to squeeze perhaps as much as another $500 out of the dealer. Total savings: nearly $4,000 or about 20 per cent off a $20,395 car.
Or take the Nissan Murano crossover. We all know Nissan has plans to update the Murano quite soon, so the 2014 has $7,000 in factory money in play. The savvy shopper will work hard to squeeze out another $2,500 or $2,600 from the dealer. Total savings on a $40,848 rig: nearly $10,000, or about 25 per cent off sticker.
Deals also likes the $6,000-plus in total savings on outgoing 2014 Toyota Venzas (though a big chunk is in after-tax money) and something approaching $3,500 in available discounts on the 2014 Ford Escape.
The calendar says it will remain 2014 for a few more months, but for car companies and dealers, 2015 is here. That means there could very well be a very good deal waiting for you right now.
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Deals of the Week consulted with unhaggle.com, Car Help Canada, carcostcanada.com, and other sources on these offers. As usual, pricing information here is subject to change and dealer discounts vary, so consult your dealer for the final details, including expiry dates for all offers.
2014 Nissan Murano AWD 4 door SL
- MSRP: $40,848
- Freight, dealer prep, air conditioning tax: $1,885
- Dealer discount (estimated): $2,600
- Factory discount: $7,000 (manufacturer incentive)
- Taxable subtotal: $33,133
- Total price with 13% HST: $37,440.29
- A 0.0% finance rate is available for 48 or 60 months, but not with the factory incentive. Ditto for the 0.90% lease rate for 48 months.
2014 Kia Rio 5 door hatchback auto SX w/UVO
- MSRP: $20,395
- Freight, dealer prep, fees and air conditioning tax: $1,620
- Dealer discount (estimated): $495
- Factory discount: $3,250 (manufacturer incentive)
- Taxable subtotal: $18,270
- Total price with 13% HST: $20,645.10
- Cash incentives are available with 2.99% financing for 48, 60 or 84 months or a 5.99% lease rate for 48 or 60 months.
2014 Ford Escape 4WD 4 door SE
- MSRP: $29,199
- Freight, dealer prep, AC tax: $1,785
- Employee Pricing discount: $2,262
- Factory discount: $500 (manufacturer incentive)
- Taxable subtotal: $28,222
- Total price with 13% HST: $31,890.86
- Factory incentives are available with 0.99% financing for 48 or 60 months or a 0.0% lease rate for 48 months.
2014 Toyota Venza 4 door Wagon V6 AWD
- MSRP: $32,250
- Freight, PDI, AC tax: $1,825
- Dealer discount (estimated): $2,100
- Taxable subtotal: $31,975
- Total price with 13% HST: $36,131.75
- Factory discount: $4,000 (manufacturer incentive)
- Final price: $32,171.75
- The factory cash incentives are not available with 0.0% financing for 48 or 60, or a 0.90% lease rate for 48 or 60 months.
Pricing information source: unhaggle.com and 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. Where noted, "dealer discounts" are negotiated with the customer on a case-by-case basis. Unhaggle Savings are actual discounts received by Unhaggle customers.
If you have questions about driving or car maintenance, please contact our experts at globedrive@globeandmail.com.
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