Waste of Base: Deals Don't Always Extend to Base Models

Most readers are aware of my unbridled enthusiasm for base model cars. Sure, there are a few luxury models that spring to mind where it’s imperative buyers select the top trim, lest they run the risk of an arch nemesis pulling alongside them in an Escalade Platinum when they are piloting a lowly Escalade Luxury.

Thing is, it behooves the frugal customer to pay attention before they sign the note on a set of base wheels. For years, commercials told us “ America Runs on Dunkin” when we all know that America Runs on Monthly Payments. Most shoppers have a monthly or biweekly figure in mind and, examined through that lens, base cars aren’t always the best deal.

Take the 2017 Chevy Equinox as an example. With a newly redesigned model on the way for 2018, you can bet dealers are anxious to move their old stock. The base, front-wheel drive Equinox L stickers for $23,995. As of this writing, no (visible) cash is on the hood. Moving up a rung, an Equinox LS with the same drivetrain shows a suggested price of $26,405. Sounds about right, given the extra kit like satellite radio and such that appear on the more expensive model.

Once one looks closely, customers of the more expensive LS benefit from a $2000 allowance towards the MSRP, plus an additional $1,250 cash back for *ahem* well-qualified buyers. That knocks the bottom line well down into base model territory. No one benefits from an atrocious 6.9% interest rate over 72 months, however.

Chrysler’s 300 is another good illustration. The base model Limited (yes, the cheapest 300 is called the Limited) has an MSRP of $32,260. On a 30,000-mile three-year lease, a myriad of offers and incentives put the monthly payment in at $403 per month with no down payment. Or, purchase the thing over 72 months at 1.9% for $37 more per month.

Here’s where it gets fun: the 300S, a full $3,335 more dear than the base model, works out to be a few shekels cheaper per month than its lowly brother. Absent of any down payment and flush with incentives, the snazzier 300 — equipped with better rimz and BeatsAudio approved by Dre — is an even $400 a month on an equivalent three year, 30,000-mile lease.

Don’t think it’s solely the domestic manufacturers playing this game. Infiniti has foisted its diminutive QX30 upon a crossover-hungry marketplace, offering an array of trims on its stylish take of Merc’s GLA250. The base model opens at $29,950. Customers can take a $2,650 walk to the next trim level, a Luxury trim that essentially adds heated leather seats.

Yet, the more expensive QX30 is only $10 more per month on a 39-month lease, thanks again to aggressive lease discounts on the costlier trim. An extra $390 over the term of the lease is worth considering, given the extra kit between the two models.

These aren’t the only models where pricing shenanigans on the lowest rung make stepping up a more financially sound decision. The folks over at carsdirect.com have a few more examples.

None of this dampens my enthusiasm for base cars. Smart customers, as always, will read the fine print and seek out the best deal. Now, go spend your lunch break on various Build and Price tools. My browser history is rife with ‘em.

Payments and prices in these examples do not include taxes or destination charges. ZIP codes for Florida were used on the build and price tools because I’m freezing my nuts off in eastern Canada and dreaming of warmer climes, so rebates and discounts are calculated specifically for that area of the country. However, with a few exceptions, incentives appear to be similar across the nation. As always, do exhaustive research and bargain hard before signing any paper in the F&I office.