Tesla has been the darling of the automotive media in recent days with the launch of its Model 3 electric car last Thursday. While the vehicle is not expected to be available until late 2017, within the first three days more than 276,000 customers put down $1,000 deposits to reserve their spot in line to purchase it. This phenomenon highlights two important emerging trends among automotive consumers.
First, automotive retail is finally ready for e-commerce and the industry must adapt – from auto makers to dealerships. Traditional physical retailers such as Walmart and Target have seen this battle escalate over the last decade as players like Amazon and Apple have revolutionized retail experiences. The same is coming to automotive. According to research by DMEautomotive, one in six car buyers did not complete a test drive and 40 per cent visited only one dealer before purchasing.
"This avoidance of physical dealerships is in stark contrast with how much online vehicle research is happening: 4 in 5 people now use the Internet for car buying, visiting 10 auto websites in the process," said Dr. Mary Sheridan, Manager of Research and Analytics at DMEautomotive. "More people are stealthily comparison-shopping dealerships and inventory online, and then swooping in to buy when their minds are already made up. Dealerships can no longer rely on in-store visits and the old 'be-backs' to drive sales: they need to have the most powerful online presence wherever dealer/vehicle selection is happening."
Second, electric vehicles are only finally starting to attract mainstream attention. In Canada, electric vehicles sales increased over 32 per cent in 2015. While this represented only 6,933 electric vehicle units sold as compared to 1.9 million across the entire market, new and improved models combined with strong auto maker and government incentives should help accelerate public adoption.
We've highlighted some of our favourite green alternatives that you can purchase today with big savings:
2016 Hyundai Sonata Plug-in Hybrid
Cash purchasers, finance and lease customers can take advantage of a $3,032 manufacturer incentive on the 2016 Sonata Plug-in Hybrid (compared to zero in March). Financing for up to 60 months is available at 0.99 per cent (compared to 1.99 in March) and leasing for up to 60 months is available at 1.99 per cent. Ontario residents can also benefit from up to $8,460 in government incentives which are in addition to manufacturer and dealer discounts noted.
2016 Hyundai Sonata Plug-in Hybrid
- MSRP: $43,999
- Manufacturer incentive: $3,032
- Estimated dealer discount: $1,000
- Freight, PDI, government fees: $1,935
- Cash purchase price before tax: $41,902
- Finance for 60 months at 0.99 per cent interest for $809 per month including tax (includes a $3,032 manufacturer incentive and assumes zero down payment)
- Lease for 48 months at 1.99 per cent interest for $685 per month including tax (includes a $3,032 manufacturer incentive applied before tax, assumes a 20,000 annual kilometre allowance and zero down payment)
2016 Nissan Leaf
Cash purchasers can take advantage of a $3,000 manufacturer incentive on the 2016 Leaf S while finance customers are entitled to a $2,000 rebate (both compared to $1,500 in March). Financing for up to 72 months is available at 1.49 per cent (compared to 1.99 in March) and leasing for up to 60 months is available at 3.9 per cent. Ontario residents can also benefit from up to $9,809 in government incentives which are in addition to manufacturer and dealer discounts noted.
2016 Nissan Leaf S
- MSRP: $32,698
- Manufacturer incentive: $3,000
- Freight, PDI, government fees: $2,130
- Cash purchase price before tax: $31,828
- Finance for 60 months at 1.49 per cent interest for $640 per month including tax (includes a $2,000 manufacturer incentive applied before tax and assumes zero down payment)
- Lease for 48 months at 3.9 per cent interest for $672 per month including tax (assumes a 20,000 annual kilometre allowance and zero down payment)
2016 Mitshubishi i-MiEV
Cash purchasers and finance customers can take advantage of a $3,000 manufacturer incentive on the 2016 i-MiEV. Financing for 60 months is available at 0.99 per cent. Ontario residents can also benefit from up to $8,999 in government incentives which are in addition to manufacturer and dealer discounts noted.
2016 Mitshubishi i-MiEV ES
- MSRP: $27,998
- Manufacturer incentive: $3,000
- Estimated dealer discount: $500
- Freight, PDI, government fees: $1,790
- Cash purchase price before tax: $26,288
- Finance for 60 months at 0.99 per cent interest for $508 per month including tax (includes a $3,000 manufacturer incentive applied before tax and assumes zero down payment)
2016 Smart fortwo electric drive
Cash purchasers, finance and lease customers can take advantage of a $3,000 manufacturer incentive on the 2016 fortwo electric. Financing for up to 72 months is available at 1.49 per cent (compared to 1.99 in March) while leasing for up to 45 months is available at 3.9 per cent. Ontario residents can also benefit from up to $8,500 in government incentives which are in addition to manufacturer and dealer discounts noted.
2016 Smart fortwo electric drive coupe
- MSRP: $26,990
- Manufacturer incentive: $3,000
- Estimated dealer discount: $250
- Freight, PDI, government fees: $1,435
- Cash purchase price before tax: $25,147
- Finance for 60 months at 2.9 per cent for $510 per month including tax (includes a $3,000 manufacturer incentive and assumes zero down payment)
- Lease for 45 months at 2.9 per cent interest for $487 per month including tax (includes a $3,000 assumes an 18,000 annual kilometre allowance and zero down payment)
Andrew Tai is CEO of Unhaggle
Pricing and calculations are based on Ontario customers and subject to availability of inventory. Please note that while the information above is accurate at the time of publication, pricing, incentives, and discounts may vary and are subject to change or discontinuation at any time. Dealer discounts are estimates and may be given at the discretion of individual dealers. Consult your local dealership for details.
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