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Cato: Vaughan, it's got to be the marketing. Hyundai simply is not telling the Sonata story in a compelling, effective way.
How else to explain why this midsize sedan is one of the really outstanding deals out there — at least in its segment. The car is not moving on its merits so much as on the deal.
Vaughan: Is this the Sonata they build at the plant in Bromont, Quebec? Oh no, not any more.
But that's my point. Hyundai's bad old image is hanging over some good new product. The marketing is awful. They just keep trying to discount their way around their problems.
Michael Vaughan and Jeremy Cato
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Plus the fact that the Sonata is one plain looking four-door family car. It's getting a facelift sometime in 2009 but the 2008 Sonata is slightly undersized and plain.
Cato: Put all that aside for a second. Look, the four-cylinder Sonata, not the V-6, is ranked as one of most reliable cars out there by Consumer Reports. Among family cars it's up there with some real heavy hitters: Honda Accord, Toyota Prius, Toyota Camry Hybrid and Ford Fusion.
Vaughan: Reliability is no longer a problem with Hyundai, so why doesn't it have an image like Accord and Camry? Hyundai has put together impressive scores in any number of quality studies, not just the ones from CR.
Cato: And safety. The Sonata has a "Good" rating from the crash testers at the Insurance Institute for Highway Safety, and a five-star rating from the U.S. Government crashers, too.
Vaughan: The hard data is on the Sonata's side.
Cato: So explain to me why the Accord and Camry sell so well: the Accord was Canada's ninth best-selling car last year, the Accord No. 6. The Sonata couldn't crack the top 10 despite all the money Hyundai has put on the table.
Vaughan: It's called discounting your way through image problems. But if you have no problem with the image, then by all means take the dough.
Cato: Let's start with the financing — 0.0 per cent for up to six years. SIX YEARS of free money. On top of that, buyers who work the deal will find more than $5,500 in factory incentives on the table.
Vaughan: That is serious moolah. But most of that is in factory-to-dealer rebates, not factory-to-consumer rebates, so if you want it you'll have to work the deal. But the money is there.
Cato: On the leasing side of things, Hyundai is offering a 2.3 per cent interest rate for up to four years.
Vaughan: The purchase financing route is the most cost-efficient way to go. A lot of buyers see that. Take a look at the data from the Power Information Network.
Cato: Right. Only 27.5 per cent of Sonata transactions are on a lease, which is low in Canada — where nearly 50 per cent of all new vehicles drive off the lot on a lease.
Vaughan: With the Sonata, 72.5 per cent are moved out the dealer's door using cash or financing because of the free money.
Cato: Now that should be good for resale values down the road. With a smaller number of late model off-lease Sonatas heading into the used car market, no one needs to worry about a glut of them driving down values — now or in the future.
Vaughan: By any measure, the Sonata is a deal and that fits my image.
Cato: But the Sonata and your image could both be a little more stylish.
2008 Hyundai Sonata
Buyer's Age Range:
- 16-34 years: 11.1%
- 35-54 years: 37.7%
- 55+ years: 51.2%
Gender ratio:
- Female: 35.5%
- Male: 64.5%
Type of sale:
- Cash/non-dealer financing: 20.4%
- Finance: 52.1%
- Lease: 27.5%
Most popular colours
- Black
- Grey
- Silver
- Black
Vehicle price: $26,467 (does not include taxes, license or title fees)
Days to turn: 41
Trade ins: 37.2% (does not include lease returns)
Top trade ins:
- Hyundai Sonata
- Hyundai Elantra
Average monthly payments: (includes PST & GST)
- Lease (60 month term): $400
- Finance (60 month term): $462
Source: Power Information Network
