New cars are being marketed with the promise of better-than-new features, and they’re often marketed to people who have a history of buying high-priced, luxury cars.
These ads often include claims that the cars are more reliable than comparable vehicles, better fuel-efficient, or are a better value.
But in reality, they’re selling people a brand-new car that’s much more expensive than their current vehicle.
The latest study from the National Automobile Dealers Association found that only 1 in 6 new car buyers were able to buy the new vehicle, and only 10 per cent of those were able afford it.
That’s because the industry’s new-car-buying market is saturated with cars from all over the world that don’t meet the standards set by the NADA.
Some new-vehicle buyers are willing to shell out thousands of dollars for the privilege of owning a brand new car that they can’t afford.
It’s estimated that more than 10 per of all new cars sold in Canada come with a “certified financial hardship exemption,” meaning they can be purchased for less than $10,000.
However, the industry is still trying to sell people the idea that they’re getting a brand replacement, not the brand replacement they’re buying.
“We need to educate consumers that this is a brand change, and not a brand swap,” said Chris O’Brien, NADA’s senior director of automotive marketing.
The NADA is an industry association that represents dealers and manufacturers of vehicle components.
O’Neill says he’s seen many buyers who have bought a new car, but they’re being told that they don’t qualify for the financial hardship exception.
“They are buying a brand car, and then they’re asked to make a choice about the cost of that brand car,” he said.
“It’s really confusing to them.”
Some people who buy a brand replacing their existing vehicle may be paying more than what they’d be paying for the brand car.
This is called the “value transfer” effect, and it’s the result of consumers thinking that they should be getting a discount from the brand-name car.
In reality, there are very few brand replacement vehicles on the market today.
The cost of a brand vehicle varies greatly depending on where you live and where you work, and there are also many differences between models.
“When you drive your brand car around, there is a very small difference in cost between the brand you drive and the brand on the road,” said O’Neil.
“So people have this assumption that the brand is going to be identical, and that’s not necessarily the case.”
New-car buyers are being sold a brand brand replacement that doesn’t meet their needs, but it’s still very common to see new-cabinet car brands such as Toyota, Honda, Hyundai, and Nissan being marketed to consumers.
“People are buying the brand brand and then expecting the brand to be as good as their brand car that it replaced,” said Rob O’Gara, a Toronto-based auto analyst and author of The Road Less Traveled.
“This is what you get when you don’t have a brand.”
The NAA says it has been collecting information on the brand replacements being sold in the industry and the consumers who are purchasing them, and is planning to release its report this fall.