Overpaid?
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Joined: Dec 2010
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I don't know what used prices are in Canada nut did you look up what the trade in value of your 07 was because down here in Wisconsin 27k trade in seems like a lot. I traded in my loaded 07 bighorn hemi 4x4 with 45k miles for 19k and that was over bluebook trade in. They may have worked all the discounts into the trade in. As far as 6k for insurence wow I paid like $500 for credit life and disability ins.
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Joined: Aug 2010
Posts: 379
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I do want to point out that Canada is a different country. I know a lot of americans fail to realize that, but... the US has some of the cheapest goods in the world, so you really can't compare the US purchase price to a canadian purchase price.
-Exchange rate exasterabates the numbers in the US perception (-$3000)
-The Tax rate, and they don't have the new car trade in tax deduction to my knowledge (-$6120 up to $7625 dependent on region)
-Canadians tend to pay a higher interest rate than US buyers of about 7% (-$13,000 in extra interest charges)
Right there you see that a Canadian pays almost 23k more for the same car than a US buyer.
Now on top of all this he also paid $6000 for income and disability.
Factoring all that together, the numbers make complete sense and so I don't think anything screwy was going on... however,,,
Now to the OP, if you buy new cars frequently in canada, you should probably just start leasing!!!
More importantly as a message to everyone on here, I'm concerned by how often I read the OP writing "I thought". There should be no surprises when buying a car. Its all written down in a contract before you sign it, and you should read the contract and ask questions. I was offered a real low interest rate, but when reading the contract I found it had a prepayment penalty. Since I dont keep cars through the payment cycle, the prepayment penalty offset the low interest rate, so I opted for a different loan that had a .05% higher interest rate but no prepayment. I've purchased over 25 cars and never been "surprised", because its all laid out ahead of time. Take the time you need to go through it and review what your really getting into. How much are you REALLY paying? How long are you really paying for it? what are the charges, fees, etc on the purchase? How much are those add-ons really cost? ($1052 in installed accessories costs you $1362 after interest).
Now you may have overpaid, its hard for any of us to say without actually reading the contract, but there's likely nothing you can do about it now unless you were somehow unfairly scammed, and SIGNING A CONTRACT for a different price than you thought you were paying is hard pressed for a scam. You failed to read the contract and they didn't give you the discount you thought you were getting. In business they call it a "sunk cost". A sunk cost is a cost that has been incurred and cannot be recovered. Its done. You did what you did. sometimes we do smart things, sometimes we do less than smart things. Everyone is in each boat at times. Next time be sure to review that contract!! I advise you not to lose too much sleep over it. While you can certainly say something to the dealership about being upset, Complaining won't get you anywhere but just upsetting yourself even more!
-Exchange rate exasterabates the numbers in the US perception (-$3000)
-The Tax rate, and they don't have the new car trade in tax deduction to my knowledge (-$6120 up to $7625 dependent on region)
-Canadians tend to pay a higher interest rate than US buyers of about 7% (-$13,000 in extra interest charges)
Right there you see that a Canadian pays almost 23k more for the same car than a US buyer.
Now on top of all this he also paid $6000 for income and disability.
Factoring all that together, the numbers make complete sense and so I don't think anything screwy was going on... however,,,
Now to the OP, if you buy new cars frequently in canada, you should probably just start leasing!!!
More importantly as a message to everyone on here, I'm concerned by how often I read the OP writing "I thought". There should be no surprises when buying a car. Its all written down in a contract before you sign it, and you should read the contract and ask questions. I was offered a real low interest rate, but when reading the contract I found it had a prepayment penalty. Since I dont keep cars through the payment cycle, the prepayment penalty offset the low interest rate, so I opted for a different loan that had a .05% higher interest rate but no prepayment. I've purchased over 25 cars and never been "surprised", because its all laid out ahead of time. Take the time you need to go through it and review what your really getting into. How much are you REALLY paying? How long are you really paying for it? what are the charges, fees, etc on the purchase? How much are those add-ons really cost? ($1052 in installed accessories costs you $1362 after interest).
Now you may have overpaid, its hard for any of us to say without actually reading the contract, but there's likely nothing you can do about it now unless you were somehow unfairly scammed, and SIGNING A CONTRACT for a different price than you thought you were paying is hard pressed for a scam. You failed to read the contract and they didn't give you the discount you thought you were getting. In business they call it a "sunk cost". A sunk cost is a cost that has been incurred and cannot be recovered. Its done. You did what you did. sometimes we do smart things, sometimes we do less than smart things. Everyone is in each boat at times. Next time be sure to review that contract!! I advise you not to lose too much sleep over it. While you can certainly say something to the dealership about being upset, Complaining won't get you anywhere but just upsetting yourself even more!
Last edited by Arachnyd; Jun 1, 2012 at 09:41 AM.
Registered User
Joined: May 2012
Posts: 9
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with the economic situations, its hard to say whats a fair price for these 4th gens. I paid 20k under MSRP. It was 47k and I paid 30k after taxes (before trade), but I bought a last years model during crisis time. I know others that paid close to MSRP in '09 and thats the best they could do... it was a fair price at the time. MSRP dropped in '11 and '12 if I'm not mistaken. I traded in my 2010 camaro. the used car dealership sold it for more than a new camaro costs. Things are certainly crazy and it really is near impossible to say what is "fair" after the fact. Now if you got scammed its a different story, but assuming you didn't do anything stupid and it was fair when you bought it, what things are now is hard to say.
I teach college courses and I loive to use the automotive industry because its a slow moving industry, but the rules of supply and demand still apply. MSRP is what it is- Sometimes you pay it, sometimes you underpay it. I bought my camaro for over MSRP- It was worth it. I was one of the first people in the US to drive one, and I had no regrets. last winter the same car could have been bought for almost 10k under what I paid. Its worth LESS now even though the MSRP is pretty much the same.
I teach college courses and I loive to use the automotive industry because its a slow moving industry, but the rules of supply and demand still apply. MSRP is what it is- Sometimes you pay it, sometimes you underpay it. I bought my camaro for over MSRP- It was worth it. I was one of the first people in the US to drive one, and I had no regrets. last winter the same car could have been bought for almost 10k under what I paid. Its worth LESS now even though the MSRP is pretty much the same.
Great post. Buying a vehicle is a moving target. There are a lot of factors that go into the actual price that a dealership will accept on any given day. The bottom line is that it doesn't matter what Joe Blow paid, if you like your vehicle and you fell that you paid a fair price then you got a good deal.
