The Automotive Protection Association (APA) compared versions of test models that include at least the following equipment: all-wheel drive, heated front seats, autonomous emergency braking, Apple CarPlay and Android Auto. These are Hyundai Kona Preferred, Toyota Corolla Cross LE AWD and Volkswagen Taos Comfortline.
At the time of writing this text, the supply of three models for 2022 has been exhausted, and it is very likely that the price of the 2023 models, as well as some financing and leasing conditions, will change. Note that the Corolla Cross and Kona include a heated steering wheel in selected versions, while the Taos only offers it as an option, and again, only in the Highline version, the most expensive of the models.
4WD Hyundai Kona Preferred Toyota Corolla Cross LE AWDVW Taos ComfortlineCash purchase with taxes$32,811 with taxes$35,52040 07984 months of financing with taxes$448 at 3.99%$490 at 4.29%$578 at 5.59%48 – monthly rental, 20,000 km per year, with taxes $438 @ 4.99% $497 @ 5.69% $536 @ 4.74%
Purchase with financing for 84 months
For the following settlements, APA chose a no down payment loan with a monthly car payment at the Manufacturer’s Suggested Retail Price (MSRP) prior to negotiation.
With the lowest purchase price and lowest offered interest rate (3.99%), the Hyundai Kona is the cheapest of the lot. The savings of $3,528 will be realized over the life of the purchase compared to the Toyota Corolla Cross and $10,920 for the Volkswagen Taos.
- In the case of Taos, it would be better to take bank financing, which is likely to be offered at a rate lower than the 5.59% offered by the manufacturer. For example, at the time of this writing, TD Bank offered a 4.79% rate that increases the monthly payment to $562, saving $16 per month or $1,344 over 7 years.
- Hyundai is offering financing at 2.99% for up to 72 months. This latest solution increases the monthly payment by $50 over the 84-month term, but saves $1,776 in total funding.
- The very good expected resale value of the Corolla Cross, like other Toyota pickups and SUVs, will reduce the difference to the Kona if the car is resold within the first 6 or 7 years.
Other discounts available
Loyalty discounts are offered by three manufacturers. Hyundai offers a $500 discount if you own a 2010 or newer Hyundai vehicle, and offers another discount if you are in the military or a family member. Toyota reduces your interest rate by 1% if you own a Toyota vehicle that is leased or financed by Toyota Financial Services. Volkswagen adds free service for 2 years worth $559. You must submit proof of ownership in your name or in the name of someone who lives at the same address as you.
Rent over 48 months
Monthly payments shown refer to a reserve of 20,000 km per year with no down payment. Prices are based on pre-negotiated MSRP.
The same goes for a 48-month lease: the Kona Preferred is much cheaper to rent, with a significant monthly savings of $59 compared to the Corolla Cross LE and $98 compared to the Taos Comfortline. After 4 years, the rental savings will be $2,832 on the Corolla Cross and $4,704 on the Taos.
Considering the high rental interest rate of 5.69%, it is likely that Toyota is making additional rental income; This is an indirect increase in the cost of the transaction. After all, the interest rate may come down as the car supply increases, and Toyota will have to adjust to better compete with its competitors.
>> Read also: Test of three small SUVs: 2022 Hyundai Kona, 2022 Toyota Corolla Cross and 2022 Volkswagen Taos.