Buying a Vehicle
Why Are Our Prices Different?
When you want to buy a new car, you should be doing a lot of research. Depending on where you are doing your research, you might see multiple prices for the same vehicle. For example, a commercial on TV may advertise a 2018 Hyundai Elantra with a different price than you might see on a website. This might be confusing, but there is a reason for this.
Many places will only show you the MSRP of the car (Manufacturer's Suggested Retail Price). This is set by the Manufacturer, for example, Hyundai, as a recommended sale price, and is the only price that someone legally has to show. However, at Don Valley North Hyundai, we want to be upfront about our prices, which is why we include all fees in our pricing.
What Do Our Prices Include?
*All pricing shown is for the base trim for all models
In Ontario, all dealerships must advertise their prices according to OMVIC (Ontario Motor Vehicle Industry Council) regulations. One of the regulations is that we advertise the "All-In Price", which is MSRP plus all applicable fees and levies such as Freight & PDI, the Environment Handling Fee, OMVIC Fees, dealership administration fees, and Tire Levies. Not everyone's advertising complies with this, and sometimes you will just see MSRP advertised. All dealerships will charge the All-In Price, but you might not know that until you're sitting at the negotiation table.
At Don Valley North Hyundai, our policy is to be upfront, clear and honest about our pricing. See the graphic posted above for a complete breakdown of pricing.
In Canada, we're pretty used to paying more than the price we see on a price tag. In Ontario, sales tax is now 13%, meaning whatever the price you see is, add 13% to it for your final price. But when you are looking at buying a new car, you'll usually see a set of fees that you hadn't seen before.
What the fees are called might vary depending on the dealership, but most often they'll be called "delivery and destination" or "freight and PDI." But what does that even mean? What are these fees and why do you have to pay them?
Freight, or destination, is the charge for getting the vehicle from the factory to the dealership. This could involve shipping the vehicle from across an ocean, driving a vehicle across the country or packing something up a bit more delicately. Manufacturers set the freight price based on the nameplate for the vehicle, so no matter where you are, you'll pay the same price. Many vehicles are not manufactured in Canada, so this set fee ensures that even if the vehicle is shipped from somewhere overseas like Japan, you'll still pay that price. These costs are also standard across the country, so someone in B.C. will be paying the same fee as someone in Ontario. This fee will usually be higher with bigger and more luxurious vehicles, as the cost to transport them will be much higher than a regular sized vehicle.
PDI (Pre-Delivery Inspection)
PDI, or delivery, is the charge for a technician at the dealership to inspect the car to make sure it has no cosmetic or mechanical issues. Just because a vehicle is brand new from the factory, doesn't mean it's ready for you to take home. It's also for the wash crew to run the vehicle through the car wash and make sure the car is presentable for the new owner. They'll also apply any final touches they need such as filling up the gas tank and topping up fluids.
While the MSRP (Manufacturer's Suggested Retail Price) is the most common price you'll see in many commercials and advertisements directly from a manufacturer, that price doesn't show the whole picture. At Weins Canada, we practice something called "All-In Pricing." This means that the price we advertise includes the MSRP plus all fees, except for HST and licensing. So the prices you see on any of our dealer websites include the freight and PDI fees. This practice makes it easier for you as a customer to know exactly what you're going to be paying for a new car.
Real-time DataCarProof is electronically connected "live" to their data sources. This means that data is always current. Other services purchase periodic data dumps that will often miss information that we capture.
Cross-Canada Guaranteed Lien InfoCarProof is the only service that provides consumers with guaranteed cross-Canada lien search information. CarProof is connected live to each provincial and territorial Registrar responsible for maintaining these records. Other vehicle history report companies, including Carfax, do not report any Canadian vehicle lien information. Further, only CarProof offers a guarantee regarding enforceable liens.
Accident DataCarProof has access to critical accident data that will allow you to make a more informed decision when buying or selling a used vehicle.
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|Term||48 Months||48 Months|
|Selling Price||$ 18,000.00||$ 18,000.00|
|Selling Price||$ 18,000.00||$ 20,340.00|
|Lease End Value||$ 9,000.00||N/A|
|Base Payment||$ 277.29||N/A|
|Taxes on Payment*||$ 36.05||N/A|
|Total Payment||$ 313.34||$ 486.59|
- New car, all the time. Leasing a car means you always get to drive around in a nice new car. For many people, this is an emotional boost that can't be ignored. If you love cars and driving, this is a big perk.
- Less maintenance issues. Because you're always driving a newer car, you usually don't have to deal with the regular maintenance issues that car owners face as their vehicles age. You turn in your car before all those problems start showing up (e.g. worn rotors or slipping transmission). If you lead a very busy life, or you're on the road a lot, this is one less stress you have to deal with.
- Leases are tax deductible for small businesses. If you're self-employed, commissioned sales or you own a business, you can write off your lease as a business expense. This means up to 80% depending on usage and mileage driven.
- "Afford" a nicer car. If you've ever wondered how it is that so many people can afford to drive an ***CAR1*** or ***CAR2***, then wonder no more. According to LeaseGuide.com, around 75% of all luxury cars are leased. The reason is because banks don't like to loan out more than $30,000 for a car loan. If you want a car that's worth more than that and you don't have the money to make up the difference, leasing is your only option. On the upside, your monthly payment will be lower than if you actually bought a car. Leasing allows you to "afford" a nicer car than you'd get if you had to buy it.
- Few upfront costs. Speaking of costs, leasing allows you to get into a car with very few "upfront" costs. You often don't need a down payment (or if you do, it's fairly low), your monthly payments are lower, and your sales tax is going to be a lot lower since you only have to pay tax on the value of the car you actually used. According to Edmunds.com, this means that during the life of your lease, you're going to pay roughly half the sales tax you would if you bought the car.
- Cost of Interest. The cost of interest on a lease is equal to 1% less on a finance. This because on a finance you are paying interest on the tax you paid up front for the purchase. The lease only calculates the interest on the cost of the car and tax is paid on the monthly payment.
- Residual value. This is the value of the car or truck at the end of the lease. An inflated residual value lowers your monthly payments, but it can also handcuff you. A more realistic residual value will make it easier to sell the lease, trade your vehicle in the middle of the lease or buy the vehicle at the end of the lease. The more realistic the residual value the more options you have during and at the end of the lease
- Buy what appreciates. Regardless of the car you choose it will lose value over its lifetime. Use your cash to pay down high interest debt, pay down your mortgage or top up your RRSP. All will save you money and in the case of your mortgage or RRSP increase your net worth. A car is a bad way to invest your money. Lease the car, pay for the usage and then decide if you want to keep it by buying it out or replacing it. Lots of options and your money is still at work for you.
- Cash Flow. For the same cost of a car loan, leasing provides a lower monthly payment. With the rising cost of gas, maintenance and insurance you can have your car payment, insurance and some of you gas or maintenance for the cost of a monthly loan payment.
- Flexibility. Long term loans stretch your borrowing, thus locking you in for a longer period. Leasing allows you to turn your car over in a shorter time. Or if you have a career or lifestyle change you simply pay of the difference between the lease payout and the cars value to move the car or get into a new one. A properly structured lease will give you the options you need if required.
The Vehicle Identification Number (VIN) is displayed:
- On the driver's side dashboard near or under the bottom portion of the windshield
- On the ownership registration card
- On your vehicle insurance card
- On the certification label found on the driver's side doorjamb on most vehicles