WANT A NEW CAR, BUT FOR “CHEAPEST”?
You need to consider:
2019 Mitsubishi Mirage ES-CVT vs 2019 Chevrolet Spark LS Manual
Fuel Economy (w/CVT/Automatic - City/Highway)
37 MPG/43 MPG vs 30 MPG/38 MPG
Cargo Space w/Rear Seats Up
17.2 Cubic Feet vs 16.6 Cubic Feet
Steering Wheel Mounted Audio and Phone Controls
STANDARD vs N/A
Remote Keyless Entry with Panic Feature
STANDARD vs N/A
Fuel efficiency:
The sample math based on 45% highway, 55% city driving, current gas prices and driving of 10,000 km yearly (833.3 km monthly, 192.3 km weekly, 27.4km daily).
Sales Tax & Interest Rate:
In Ontario is 13%. Interest rate of example loans is 2.99%, if yours is lower, like 0%, you’ll a lower amount monthly.
Down payment:
Ideally 20% of the MSRP & the loan term should be no more than 48-months, unless you can get a 0% rate over 60-months.
Insurance Rate:
The rate used is for an 18 year old male driver living in Ottawa with a full G licence, clean driving abstract. Standard driver, no drivers courses or discounts from outside sources.
Given the requirements of “cheapest new car” in Canada there are 2 GREAT OPTIONS, one of each transmission type, I can find. They are the “cheapest” when considering MSRP & Total cost of ownership.
* For manual drivers:
The Spark LS (manual) has cheaper cost of ownership than the Mirage ES (manual) in anyway, cash purchase or any term loan, it’s a better manual transmission deal. Fuel cost would take 9+ years to make the difference in cost up.
2019 Chevrolet Spark LS: MSRP: $10,195 or 48-month: $205 loan, $46 fuel, $301 insurance monthly (its automatic version is $14,295, almost $2100 than the mirage’s, yikes!)
No Loan: Monthly insurance $301 + monthly fuel cost $46 = Total $367 monthly, about $300 more than transit
Loan: Monthly insurance $301 + monthly fuel cost $46 + monthly auto loan $205 = Total $552 monthly
* For automatic drivers:
The Mirage ES-CVT (auto) has cheaper cost of ownership than the Spark LS (auto) in anyway, cash purchase or any term loan, it’s a better automatic transmission deal and cheaper on fuel.
2019 Mitsubishi Mirage ES-CVT: $12,198 (48-month: $255 loan, $38 fuel, $301 insurance monthly (its manual version is $10,998, that’s $903 more than the spark’s)
No Loan: Monthly insurance $301 + monthly fuel cost $38 = Total $339 monthly, about $285 more than transit
Loan: Monthly insurance $301 + monthly fuel cost $38 + monthly auto loan $255 = Total $594 monthly
NOTE:
THE MIRAGE IS AVAILABLE A FEW MORE "FREE" COLORS THAN THE SPARK
Need it cheaper?
1 – Buy a used car
A lightly used Chevrolet Spark or Mitsubishi Mirage can save you money on the purchase price and save on yearly on insurance.
2 – Consider reducing your car insurance coverage
Instead a “standard policy” with comprehensive, collision, and other valuable endorsements, opt for minimum coverage. A Chevy Spark with the minimum insurance might save another $83+ per month on insurance (or $1008+ per year). Think about what you’re giving up and what your covered for if you’re in an accident.
3 – Think about adding yourself to your parents’ or partners policy
Its free insurance coverage, but a shared discount. You are primary driver and full owner of the car, but your parents/partner get a multi car discount. You can all share in on the savings a multiple car policy.
4 – Increase your deductible
The deductible, how much you have to pay before the insurance company will pay the rest. Increasing your deductible, $500 to $1000, it can lower your insurance rate.
5 – Add safety measures to your car
Think of adding winter tires an anti-theft device. Some insurers will give you a discount, check 1st.
6 – Ask about and looks for discounts
In school, a union member of a union, club, CAA? Many insurance companies give discounts to these drivers. Student insurance can be found for drivers under 25.
7 – Pay yearly, not monthly
If you can afford it, many insurers give a price reduction if you pay yearly car insurance up front.
8 – Get a Telematics unit and/or app
A Telematics app, and/or device installed your car tracks your driving. Some track driving behaviours as that encourages safe driving. Safer driving mindset & cheaper insurance, big win!
9 – Look for better rates and compare
Ask, look and research. Get insurance quotes, if price vs coverage is lower, ask for matching rate or switch. Get the best value in everything.
10 Always get CAA!
$79 yearly saves you a lot more, check the deals yourself…they rock!
11 Turo renting, ride sharing like uber, food delivery?
Make that car make money for you!