Parts shortage will boost new car prices

Posted by on Jan 25, 2012 in 4th Article | 0 comments Your new car is about to get more expensive, if you can buy it at all. Just as chaos theory suggests a butterfly’s fluttering wings may affect the weather thousands of kilometres away, a catastrophic earthquake on the far side of the globe has the ability to disrupt things right here. One-quarter of the world’s supply of automotive electronics comes from northeast Japan, the region devastated by the March 11 earthquake and tsunami. Because auto-parts supply networks are intertwined, few major car companies may be able to escape the effects of the Japanese disaster. Toyota, the world’s largest automaker, says there are approximately 150 parts — mainly electronic, plastic and rubber components — whose short supply is impacting its new-vehicle production. Its manufacturing plants in Japan are currently working at 50 per cent of capacity due to parts shortages, while those in North America are operating at 30 per cent of capacity boonieplanet. Other Japanese makers are managing similar challenges. “Expect the full impact of the Japan disaster to affect availability and thus pricing later this summer and fall,” warns Joel Cohen, president of the Toronto Automobile Dealers Association (TADA). “Shop early for best availability, selection and best pricing, especially popular compacts and subcompact cars. As the price of gasoline goes up, the availability of these cars will decrease proportionately.” Industry observers agree the old mantra — “there’s never been a better time to buy a new car” — may have finally run its course. “The earthquake has created supply issues; many models will be in short supply in the coming months,” reiterates Mark Derry, an automobile advisor who counsels clients on new- and used-car purchases in the GTA. “Already, I have a customer who’s been told he’ll have to wait until the fall to receive a Lexus CT 200h hybrid.” Toyota admits in its media release that it will be November or December before normal production levels are restored taschenrechner kostenlos herunterladen. Consumer advocate Mohamed Bouchama of CarHelpCanada.com reports that 2012 models of Canada’s favourite automobile are only trickling into Honda showrooms. Some dealers are just taking orders on the new Civic. Basic economics dictates that when supply is constricted, the price goes up. Bouchama says that while Honda’s sticker prices remain unchanged, dealers will be reluctant to discount their small allotments of cars. “The mark-up has gone up, not the sticker,” says Bouchama. “Civic buyers would be...
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The pros and cons of ending a lease

Posted by on Jan 25, 2012 in 5th Article | 0 comments It can make sense to get out early but the new lessee must watch out for some curves. Bert DeSouza enjoyed driving his 2006 Subaru Legacy GT wagon until a job change that allowed him to work at home meant his expensive Subie would languish in the garage. It was time to part company — a formidable challenge when you’re leasing. “I had 11 months left on the lease at $606 per month. Returning it early would have required paying a penalty in the thousands,” says DeSouza. Like a growing number of Canadians, DeSouza advertised his car and his lease on a lease-takeover “remarketing” website and found a willing second lessee. To help grease the transaction, he offered the new lessee $1,250 cash and paid the transfer fee (about $400); in return, DeSouza was released from his contractual obligations adobe digital editions kostenlos herunterladen. “For the original lessee, it represents an alternative to the tyranny involved with early lease termination where it sometimes feels like the dealer and automaker want a pound of flesh,” says George Iny, president of the Automobile Protection Association. “Typical cost for an early lease return runs in the $2,500 to $5,000 range — with $10,000 not unheard of for a prestige vehicle or for someone ending a lease in the first year.” At the same time, used-car shoppers are turning to lease-takeover services to find late-model used cars and trucks as an alternative to scanning the classifieds and looking online for used vehicles to buy. “Savvy people are using the site,” says DeSouza. It’s especially useful if you’re looking for luxury vehicles or hard-to-find specialty models, he notes. Mississauga-based Leasebusters.com pioneered the lease takeover concept in 1990 and dominates the market today, but there’s no shortage of competition antivirenprogramm für windows xp kostenlos downloaden. Rivals include Easyrelease.ca, Leaseexperts.ca, LeaseTakeOvers.ca and Ontarioleasing.com, among others. All the sites function the same way: vehicles and leases are advertised to draw present and future lessees together; all that seems to differ is the service fee. Leasebusters charges $295, while newer firms tend to undercut that price to build traffic. In reality, anyone can advertise their lease in any classified listings, such as Craigslist and Kijiji, often at no cost. It’s no secret leasing will get you into a new automobile at a relatively low monthly payment, since you’re essentially renting the car. A lease takeover is attractive because...
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What’s the best way to pay?

Posted by on Jan 25, 2012 in 6th Article | 0 comments It’s a whole different game when you’re buying used. Here’s how to have the edge if you need a car loan The financing options available to new-car shoppers are well advertised but what’s out there for shoppers of pre-owned vehicles? Unlike new-car dealerships, whose low, low financing rates are subsidized by the manufacturers to keep their assembly lines humming, used-vehicle dealers remain at the mercy of the lending market onedrive ordner nicht herunterladen. And despite the fact interest rates are at historic lows, used-car lots are borrowing at 5.99 per cent right now – a good rate, but not a great one. Yet consumers won’t be seeing that number on their loan agreement. The dirty secret of the finance world is that your chartered bank would rather loan the money to dealers than to their own customers download cdburnerxp. In fact, auto dealers earn a cash incentive from the banks to loan that money out at the highest possible interest rate. “Banks pay a flat commission for a base rate loan, and incentives if the borrower has good credit and can be bumped to a higher interest rate,” explains George Iny, president of the Automobile Protection Association (apa.ca). “For a $10,000 loan, the best rate from the small dealer I contacted is 7.25 per cent; the dealer can get a commission of about $150 (from the bank) Download adblocker opera for free. By bumping the rate by 1.5 percentage (points), the dealer will collect $400.” “It incentivizes the dealer not to give you the best rate,” says Iny. As a general rule, car loans valued at less than $10,000 are levied a higher interest rate, while larger sums are cheaper to borrow. Car loans are almost always negotiable teamviewer 12 herunterladen. When pressed, most dealers can shave a half-per cent off the quoted rate to win your business, but to really get their attention, utter the two most hated words in the car business: credit union. “A credit union can offer car loans at 6 to 6.25 per cent to their best customers,” Iny says. “Dealers hate that. It’s like showing a crucifix to a vampire.” The best bank rate for a larger loan on a more recent model can be as low as 6.5 per cent subtitles youtube. But to qualify for their lowest rates, banks want to see substantial money down: about 15 to 20 per cent...
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The ins and outs of the new Dealers Act

Posted by on Jan 25, 2012 in 7th Article | 0 comments Motor Vehicle Dealers accord will protect sellers but be a bigger aid to car and truck buyers. It doesn’t lend itself to snappy headlines, but the newly revamped Motor Vehicle Dealers Act ushers in some welcome benefits for buyers of new and used vehicles and the Ontario dealers they engage. The revised MVDA, which comes into effect on Jan. 1, significantly updates the regulatory framework for motor vehicle dealers and salespeople – the product of six years of teeth-gnashing negotiations between various players in the automotive retailing sector malen app kostenlos downloaden. Some of the changes include full disclosure obligations that will provide more vehicle information to buyers, as well as “all-in” inclusive pricing, increased Compensation Fund claim coverage to $45,000 and stiffer penalties for convictions under the act. “It’s the first dramatic change in auto retailing legislation in 45 years,” says Bob Pierce, director of member services for the Used Car Dealers Association of Ontario bubble games for free. “Consumers will be in a better position to buy with confidence, and dealers are welcoming the changes because they make good business sense.” Pierce has been spending the last three months criss-crossing the province to help dealers get up to speed on the impending changes. The retooled act will impact the business practices of the 9,000 dealers of new and used cars in Ontario. Perhaps the biggest improvement is the enhanced disclosure statement that spells out 22 bits of information dealers must reveal to other dealers (in the case of a trade) or to the consumer as part of the sale revit familien downloaden. Among other things, the mandatory vehicle information will specify: “Incident” damage repairs exceeding $3,000. Known defects in the powertrain, electrical system and air conditioner. Two or more adjacent body panels having been replaced (excluding bumpers). Immersion in water up to the interior floor. Previous vehicle registration outside of Ontario kostenlose apps downloaden. Insurance declared “total loss,” whether branded or not. The disclosure rules cut both ways, Pierce points out. Consumers trading in their vehicles will no longer be able to silently submit their car for trade-in appraisal without answering a battery of questions about the vehicle’s history. “I teach a process to dealers about how they can engage car owners in a friendly chat about their vehicle’s history. Up until now, customers weren’t motivated to talk about their trade-in,” says Pierce clash royale free download...
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Leasing loses its lustre in market turmoil

Posted by on Jan 25, 2012 in 8th Article | 0 comments Plummeting residuals means cash is king for many automakers. There’s been a lot of speculation over the past nine months about automobile leasing going the way of the dodo, but in reality, leasing – preferred by the majority of new-car shoppers a decade ago – is still garnering a considerable slice of the Canadian car market. While it’s true General Motors and Chrysler have dropped their leasing programs, every other manufacturer is still in the game – although some would rather not be herunterladen. Auto broker Mark Derry, of CarSense.to, believes lease deals are definitely more expensive than last year and some automakers are dissuading customers from leasing. The reason? Plummeting residuals – the remaining value of the car at the end of the lease – are playing havoc with profitability. “Companies are terrified of the market and don’t want to lose on lease returns,” Derry says gta rennen herunterladen. Leased vehicles (especially gas-swilling SUVs) are frequently worth less at the end of the contract than predicted, leaving the automaker’s finance arm to absorb the loss once the vehicle is sold at the present, lower market value. Even vaunted nameplates aren’t immune to falling residual values, leading to higher lease payments than Canadians are accustomed to. “Strong residuals among popular Japanese models are down 4 to 5 per cent,” Derry says download netflix app movie. “Toyota has slipped from 48 per cent retained value after four years to 42 per cent – that means the customer has to pay more of the vehicle’s value over the first four years in their monthly payment.” Some automakers, especially the luxury brands, continue to advertise attractive lease rates, says Derry, because the prime rate companies pay is at a historic low. Given the stark economics of leasing, it’s no surprise leasing has taken a back seat to financing. Chris Travell, vice-president of Maritz Research Automotive Group, says automobile leasing in Canada has plunged from a peak of 54 per cent of all new-car transactions in 1999 to 42.5 per cent in 2005 and just 32.3 per cent in 2008 dota 2 ohne steam downloaden. “I wouldn’t be surprised to learn leasing has fallen below 30 per cent of new-car sales right now,” says Travell. “The credit crunch has accelerated the drop in leasing.” Some automakers stipulate punishing lease rates to deter consumers and to cover future losses. “Ford is offering some lease...
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