Buying a Vehicle
Why Are Our Prices Different?If you're looking at a new car purchase in the near future, you should be doing a lot of research about different vehicles out there. Depending on what you're looking at, you might notice multiple prices for the same car. For example, a TV commercial may advertise a 2018 Lexus IS 300 differently than the price you might see on a website. This might be confusing, but the reasoning is pretty simple. Many outlets will only show you the MSRP of the car (Manufacturer's Suggested Retail Price). This is set by the Manufacturer, for example, Lexus, as a recommended sale price, and is the only one that an outlet legally has to show. However, at Don Valley North Lexus, 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 modelsIn Ontario, all dealerships must advertise their prices according to OMVIC (Ontario Motor Vehicle Industry Council) regulations. One of those regulations is, we must advertise the "All-In Price", which is MSRP (Manufacturers Suggested Retailing Price) plus all applicable fees and levies such as Freight & PDI, the Environment Handling Fee, OMVIC Fees and Tire Levies. Not all advertising complies with this regulation, 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 Lexus, it is our policy to be upfront, honest and clear about our pricing. See the graphic above for a complete breakdown of pricing.
Excise tax (Green Levy) on fuel inefficient carsThis tax is applicable to vehicles purchased in Canada or imported from the United States and is applied to a passenger vehicle if it:
- is a car, SUV or van with a weighted average fuel consumption of 13 litres per 100 km or higher, and
- was put into service after March 19, 2007.
- At least 13, but less than 14 litres per 100 km: $1,000
- At least 14, but less than 15 litres per 100 km: $2,000
- At least 15, but less than 16 litres per 100 km: $3,000
- 16 or more litres per 100 km: $4,000
MSRP stands for Manufacturer's Suggested Retail Price.
MSRP is an acronym that stands for manufacturer's suggested retail price. Manufacturers (i.e. Audi) use MSRP as a base price to give retailers their estimated value of a product. This is not the usually the actual price of an item, but rather what the manufacturer suggests as the maximum price that the item could be expected to sell for.
Dealers, are free to offer the vehicle for a lesser price, but never more on a new retail vehicle.
MSRP generally does not include additional trim levels, options, accessories, Freight, PDI, administration fees, or taxes.
MSRP Definition / MSRP Means
The definition of MSRP is "Manufacturer's Suggested Retail Price"
The Meaning of MSRP
MSRP means "Manufacturer's Suggested Retail Price
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.
An Ontario Ministry of Transportation (MTO) Safety Standards Certificate (SSC) is a document that certifies a vehicle's fitness. You can buy and register a vehicle without a safety certificate, but you cannot put your own plates on the vehicle or drive it without one. Any inspection station in Ontario licensed by the Ministry of Transportation can issue a Safety Standards Certificate, provided your vehicle passes an inspection.
A Safety Standards Certificate is valid for 36 days after the inspection. However, the certificate is not a guarantee or warranty that the vehicle will stay fit for any period.
What is a Safety Standard Certificate (SSC)?
An SSC is a certificate that is issued by a government- approved Motor Vehicle Inspection Station (MVIS) after a vehicle passes an inspection. This inspection covers the minimum safety requirements for vehicles in the province of Ontario.
When do I require an SSC?
An SSC is required when:
- registering a rebuilt motor vehicle;
- transferring a used motor vehicle to a new owner as fit;
- registering a motor vehicle in Ontario that was previously registered in another province or country;
- changing the status of a vehicle from unfit to fit.
Is an SSC a warranty on my vehicle purchase?
An SSC is not a warranty or guarantee on the general condition of the vehicle. The SSC only certifies that on the date it was issued, the vehicle met the minimum safety standards as set down by Regulation 611 of Ontario's Highway Traffic Act (HTA).
How long is an SSC valid for?
For the purposes of transferring ownership, an SSC is valid for 36 days from the day that the SSC was issued.
Buying a used vehicle can be a very stressful experience. In any situation where you're spending so much money, you want to be sure you have all the information available on what you are buying to make the best decision you can. You don't want to go on just what you've been told - you want impartial, thorough, accurate, and timely data. As well, not only do CarProof reports protect your wallet, but most importantly, having this information helps protect your family from the possibility of purchasing a vehicle that could be unsafe.
From accident information to fire damage, from liens to registration information: CarProof reports are the most detailed and complete vehicle history reports available to you. Unlike our competitors, CarProof reports offer all this and more:
CarProof 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 Info
CarProof 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.
CarProof has access to critical accident data that will allow you to make a more informed decision when buying or selling a used vehicle.
Registration & Branding
CarProof is the only service that is available to consumers providing critical real-time registration and branding information. This information discloses in which province or territory a vehicle is and/or was registered and what brand is associated with the vehicle (stolen, salvage, rebuilt, non-repairable, normal, etc.).
Full U.S. History
CarProof provides consumers with data from one of the largest U.S.-based vehicle history services. Through our connection to Experian Automotive's 2 billion+ record database, all of our reports include the data you would get from other popular U.S.-based vehicle history report services, but we also include important auction declaration information that others do not.
Here is an example that shows the difference in your monthly payment depending on whether you lease or finance your vehicle.
|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|
The MSRP and rates used above are approximate and used only as an example. Please see your Dealer for current finance and lease rates.
*Taxes (GST & PST) are 13% in this example.
- 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 RX or IS, 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 "BRAKE" indicator light will illuminate if the parking brake is not fully released. The driver may check if the parking brake is fully released. Sometimes the parking brake seems to be released, but it may need be held for a little while before it really releases. The customer can also repeat applying and releasing the parking brake, while parked, as
- The light will also be on if the brake fluid is slightly lower than allowed. That is usually an indication that the brake pads are worn and need service soon.
- The worst-case scenario is that the brake system is leaking fluid, which could lead to hydraulic failure resulting in no braking power. The driver would feel the brake pedal become spongy, and braking power required would steadily decrease or become more difficult. The driver should not drive the vehicle in this situation. The vehicle should be towed and repaired. Additional diagnostics that may be performed by the dealer include: parking brake adjustment, parking brake warning switch, parking brake warning switch wiring harness and connected components, brake fluid-level warning switch, brake fluid-level warning switch wiring harness and connected components.
Maintaining your Lexus vehicle according to the recommendations in the Warranty and Services Guide Scheduled Maintenance Log is required to ensure that your warranty coverage remains intact. Your Lexus dealer may recommend more frequent maintenance intervals or more maintenance services than those listed in the Warranty and Services Guide. These additional services are not required to maintain your warranty coverage. Please ask your dealer for an explanation of any recommended maintenance not included in the Scheduled Maintenance Log.