INTEREST RATES HAVE HUGE IMPACT ON NEW CAR MSRPs

Back in the day, a local supper-hour television broadcast was produced just down a few kilometres from the current GoodCarBadCar Towers. In one specific segment, Yvonne Colbert hosted On Your Side. It was consumer advocacy at the greenest of grassroots. "Canadian Tire wouldn't take my son's broken bicycle back just an hour after the 30-day return date expired". *Sob*

Think of The Good Car Guy as the new host of a new version of On Your Side. GoodCarBadCar guides you in the right direction and steers you away from the disappointing downward paths. Today's disappointing path isn't a specific vehicle - although certain automobiles will be unfortunately used as bad examples - but a particular problem in the industry.

See, vehicles of every kind are subject to judgement based mainly on one number on their window sticker: the manufacturer's suggested retail price. No opinion maker, myself included, can accurately critique a car or truck or SUV or van without knowing that all-important figure. Sure, I can tell you how a vehicle feels from behind the wheel or the equipment available as standard equipment or as options.

But it all relates to one number, the price of the car. Take Audi's RS6 at $30,000 instead of $90,000 and it quickly becomes the greatest car of all time. Price that same car at $180,000 and it's a joke. Regardless of its price, the RS6 accelerates with the same ferocity, lines its cabin with the same high quality alcantara, and looks like an A3 on Barry Bonds' sterioids. Yet price still provides the atmosphere for intelligent criticism.

Even so, the MSRP of a vehicle doesn't tell the fully costed story. In the three duos below, you'll see the price and payments of competing vehicles with unique interest rates. These are vehicles that would enter magazine comparison tests together based on their pricing symmetry. In the real world, any vehicle's MSRP only manages to set a range of possible payments. The interest rate writes the final chapter.

Exclusive of tax and local fees, the payments below are based on 60 month purchases on the full MSRP of these six vehicles. The rates quoted may or may not reflect the rates provided by your lender. One way or another, you'll be convinced to pay close attention to the interest rate quoted by the manufacturer's your dealing with; not just the window sticker or the incentives.

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NISSAN CUBE vs KIA SOUL

Nissan Cube 1.8SL @ $17,510 & 7.9% = $354.20 per month

Kia Soul sport @ $18,595 & 0.9% = $317.00 per month

HONDA ACCORD vs VOLKSWAGEN PASSAT

Honda Accord EX-V6 @ $27,315 & 5% = $515.47

Volkswagen Passat 2.0T @ $28,300 & 3.5% = $514.83

BMW 550i vs CADILLAC CTS-V

BMW 550i M Sport @ $66,025 & 6.9% = $1,304.26

Cadillac CTS-V @ $62,995 & 8% = $1,277.31