The Bank of Canada will announce on Jan. 9 whether it will hold the overnight interest rate steady after raising it to 1.75 per cent in October this year. If the rate does rise once again, this will have far-reaching effects across most industries – including automotive.
According to J.D. Power, financing is the preferred method of payment for the vast majority of new car buyers, accounting for 53 per cent of all new vehicle purchases in November, while lease and cash each accounted for 30 per cent and 17 per cent, respectively. However, although a rising overnight rate is an indicator of a healthy, booming economy, it also increases borrowing costs on big-ticket items such as cars.
That said, several automakers are still offering attractive financing options, starting at as low as zero per cent. To sweeten the deal, many also come with additional “stackable” incentives or special cash rebates that can be combined with discounted interest rates to help further lower monthly payments.
We’ve featured some of our favourite offers this week on vehicles that can be financed for less than one per cent interest and also carry additional incentives. If you don’t find an offer that suits you, be sure to check out the Globe Drive Build and Price Tool to see the latest incentives and discounts on any new car, truck or SUV.
Kia Sorento
The Sorento, Kia’s bestselling model in Canada, received a facelift for the 2019 model year with enhancements such as a refreshed front fascia, redesigned centre console, a new standard seven-inch infotainment display and additional active safety features on higher trims.
Depending on the trim, the 2019 Kia Sorento is available with one of two engines – a 2.4-litre, four-cylinder variant that outputs 185 horsepower and 178 lb.-ft. of torque, or a 3.3-litre, V-6 variant that delivers 290 horses and 252 lb.-ft. of torque. Interior features on the EX 2.4L trim include Apple CarPlay and Android Auto compatibility, wireless cellphone-charging capability, leather-upholstered seating for up to seven passengers, heated front seats, push-button ignition, a heated and leather-wrapped multifunction steering wheel and a rearview camera. On its exterior, the 2019 Sorento EX 2.4L is equipped with automatic projector-beam headlights, fog lights, windshield-wiper-deicing capability and solar glass.
2019 Kia Sorento EX 2.4L All Wheel Drive
- MSRP: $32,495
- Manufacturer cash incentive: $3,000 (as compared to $2,000 in November)
- Estimated dealer discount: $500
- Freight, PDI, government fees: $1,925
- Cash purchase price before tax: $30,920
- Finance for 60 months at zero per cent interest for $611 per month including tax, which includes a $1,500 manufacturer incentive (as compared to $500 in November) and assumes zero down payment
- Lease for 48 months at 1.99 per cent interest for $456 per month including tax, which includes a $1,000 manufacturer incentive (as compared to no incentive in November) and assumes a 20,000 annual kilometre allowance with zero down payment
Get Local Price on Globe Drive
Hyundai Santa Fe
Hyundai has brought major changes to its Santa Fe SUV line. The Santa Fe XL is slated to be replaced by the all-new Palisade eight-passenger SUV in the upcoming model year, while the former five-passenger Santa Fe Sport has been completely redesigned and relaunched as the 2019 Santa Fe. It sports Hyundai’s distinctive new design philosophy, most notable for its cascading grille and a dramatic new design for its headlights and daytime running lights.
The 2019 Hyundai Santa Fe is equipped with either a 185-horsepower 2.4-litre engine or a 235-horsepower 2.0-litre turbo engine, depending on the trim, and is paired with an eight-speed automatic transmission with manual mode. Standard features on this five-passenger SUV include heated front seats, a heated and leather-wrapped multifunction steering wheel, Android Auto and Apple CarPlay compatibility, an in-cluster driver information display, a rearview camera, cruise control, automatic projector-beam headlights and front fog lights. Additionally, the Preferred trim also features a seven-inch infotainment display, dual-zone automatic climate control, a forward collision-avoidance system, a blind-spot-detection system and a reverse sensing system.
2019 Hyundai Santa Fe Preferred 2.0T All-Wheel Drive
- MSRP: $37,099
- Manufacturer cash incentive: $750 (as compared to as compared to no incentive in November)
- Estimated dealer discount: $500
- Freight, PDI, government fees: $2,045
- Cash purchase price before tax: $37,894
- Finance for 60 months at 0.99 per cent interest for $732 per month including tax, which includes a $750 manufacturer incentive and assumes zero down payment
- Lease for 48 months at 1.99 per cent interest for $530 per month including tax and assumes a 20,000 annual kilometre allowance with zero down payment
Get Local Price on Globe Drive
Chevrolet Equinox
The 2019 Chevrolet Equinox comes standard with a 1.5-litre, four-cylinder turbo engine that generates 170 horsepower and 203 lb-ft of torque. Key highlights on the LT 1.5T include a seven-inch infotainment display, Apple CarPlay and Android Auto compatibility, voice-activated radio and phone controls, active in-cabin-noise cancellation capability, remote ignition and climate control, engine start-stop functionality, active grille shutters and automatic HID headlights. All trims feature teen-driver mode, which restricts certain vehicle functions while also monitoring driving habits to encourage safe behaviour.
2019 Chevrolet Equinox LT 1.5T All-Wheel Drive
- MSRP: $31,300
- Manufacturer cash incentive: $1,000 (applied after tax, as compared to $450 in October)
- Estimated dealer discount: $500
- Freight, PDI, government fees: $2,248
- Cash purchase price before tax: $32,163
- Finance for 60 months at 0.99 per cent interest for $621 per month including tax, which includes a $1,000 after-tax manufacturer incentive (as compared to $450 in October) and assumes zero down payment
- Lease for 48 months at 0.5 per cent interest for $410 per month including tax, which includes a $1,250 before-tax and a $1,000 after-tax manufacturer incentive and assumes a 20,000 annual kilometre allowance with zero down payment
Get Local Price on Globe Drive
Ford Flex
The 2019 Ford Flex’s powertrain consists of a 3.5-litre V-6 engine, which outputs 287 horses and 254 lb.-ft. of torque, a six-speed automatic transmission with manual mode, and available intelligent all-wheel drive on the SEL and Limited trims. Highlights on the SEL trim includes a SYNC3 touchscreen infotainment system with voice recognition, Amazon Alexa connectivity, a rearview camera, dual-zone automatic climate control, remote engine ignition and seating for up to seven passengers. Available features include a premium seven-speaker audio system, a voice-activated navigation system and leather-upholstered first- and second-row seats.
2019 Ford Flex SEL All-Wheel Drive
- MSRP: $41,549
- Manufacturer cash incentive: $1,500 (as compared to $500 in October)
- Estimated dealer discount: $1,000
- Freight, PDI, government fees: $1,930
- Cash purchase price before tax: $40,979
- Finance for 60 months at 0.99 per cent interest for $791 per month including tax, which includes a $1,500 manufacturer incentive (as compared to $500 in October) and assumes zero down payment
- Lease for 48 months at 2.49 per cent interest for $711 per month including tax, which includes a $1,500 manufacturer incentive (as compared to $500 in October) and assumes a 20,000 annual kilometre allowance with zero down payment
Get Local Price on Globe Drive
Andrew Tai is CEO of Unhaggle. Follow on Twitter @ahytai
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. Vehicle images may not represent the exact model featured in the pricing provided. Consult your local dealership for details.
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