SKYACTIV: What it Means

October is going to be an exciting month at the dealership because the first 2012 Mazda3 and Mazda3 Sport vehicles equipped with SKYACTIV engines and transmissions will be arriving!  Up until recently, when people came into the dealership and asked what Hybrid vehicles were available from Mazda, all we could say was that Mazda was working on Hydrogen using a rotary engine but nothing was close to production-ready.  However, the set of technologies that Mazda is introducing this Fall under the SKYACTIV badge is something worth talking about and provides a viable alternative to the array of hybrid technologies now being offered by competitors.

In fact, almost every major car company now has a hybrid, full electric, or a fuel efficiency story regardless of the brand's positioning.  The Nissan Leaf and the Chevy Volt are already arriving in showrooms now.  But Mazda has taken a different approach with its new SKYACTIV advanced engine technologies.   Mazda is positioning itself to be in the same category as the hybrids in fuel economy but with improved driving dynamics (and without many of the negatives that still plague hybrids).  Mazda was showing its next-generation highly-efficient direct-injection gasoline engine with the world’s highest compression ratio of 14.0:1 at the 2011 Frankfurt AutoShow last month as part of the launch of the 2013 CX-5.  

The SKYACTIV Technologies deal with improvements to all aspects of the vehicle to make it eco-friendly while improving on the fun-to-drive element of the ownership experience.  The three core areas targeted by SKYACTIV are:

1. Engines.  Mazda has found that a lot of the wasted energy in a litre of gasoline (or diesel) can be put to use propelling the car by using direct-to-cylinder fuel injection, innovative piston head designs, an increased compression ratio, continuously-variable sequential valve timing, and a new 4-2-1 exhaust system to improve performance, reduce emissions, and reduce fuel consumption.  Mazda has decided it's too early to give up on the internal combustion engine!
2. Transmissions.  For the SKYACTIV automatic transmission, Mazda developed a torque converter with a lock-up clutch that improves on competitive designs (including dual clutch, CVT, and conventional transmissions).  The result is a quick shifting, low friction transmission that minimizes noise, harshness, and vibration.  For manual transmissions, the objective was to produce a compact gearbox for front wheel drive drive applications that delivers the exceptional feel of the MX-5 (Miata) but with reduced internal friction and improved efficiency.
3. Vehicle Structure/Chassis.  Through the use of high tensile steels, Mazda has been able to build an extremely rigid body while reducing the weight of the vehicle.  Reducing vehicle weight improves handling and efficiency.  The chassis bolted to this structure features new suspension geometry, shorter steering gear ratio, and new trailing arm positioning to provide greater high speed stability, excellent ride comfort, and improved braking.

 An important point to mention with regards to Mazda's SKYACTIV initiative is that this represents not only an eco-friendly project but a re-thinking of every aspect of the automobile.  While many manufacturers have introduced one or two special models such as hybrids and electric vehicles, the rest of their respective line-ups have remained relatively unchanged.  To its credit, Mazda has decided to take on the challenge of re-working its entire product line to deliver outstanding eco-friendly and safety performance to every customer without sacrificing driving pleasure.

The first of these SKYACTIV Technology vehicles begin arriving on the Erin Mills Mazda lot in late October 2011 in the form of the 2012 Mazda3 (sedan) and Mazda3 Sport (hatchback).  Contact us to pre-book your test drive and to receive additional information on this breakthrough technology.

What is the Value of 0% Financing?

The use of 0% purchase financing across the automotive industry in recent years as a purchase incentive to buyers has now become so commonplace that we frequently find shoppers treating it as a basic entry point.  The true value of this incentive has started to lose its lustre with over use.  The truth is that this form of incentive has a significant value far greater than free iPods or similar gimmicks.

In most 0% financing offers, there is the alternative to waive the low financing in favour of a discount for cash purchase.  With some brands, including Mazda, you can opt for the cash discount and still finance the purchase at the preferred rate that Mazda has negotiated with the bank.  For example, in Canada, you can currently purchase a 2011 Mazda3 and finance the vehicle over 60 months at 0% OR you can get a cash discount of $1,000 and finance it at a fixed rate of 5.25%.  Which would you choose? 

First, we need to compare the cost of the 0% financing to the cost of paying cash and financing at the best available rate.  Here is how the analysis looks on the 2011 Mazda3 mentioned above:

Mazda3 Options              0% Financing    Cash with 5.25%
Mazda3 MSRP                        $19,390         $19,390
Freight, PDI, Fees                    $  1,604         $  1,604
Mfgr. Discount for Cash           $         0          ($1,000)
Cost of the Car                        $20,994         $19,994
HST at 13%                            $   2,729        $  2,599
Amount to Finance                   $23,723         $22,593
Cost of Financing                     $         0         $  3,144
Total Amount Paid                   $23,723         $25,737
Savings @ 0% Finance         $  2,014

So, compared to the next best alternative, the 0% financing for 60 months saves you over $2,000.  This is a substantial discount on a very popular, competitively priced compact car (especially when you consider that the dealer doesn't make nearly that much in selling this car). 

Welcome to Erin Mills Mazda

On the eve of a new decade, we are launching head long into the online world with a new website and a dedication to move our communication with customers to a new level.  As customers' expectations, across all aspects of their relationships with local businesses, reach new heights and the quality and timeliness of communications become more important to enhancing that relationship, we at Erin Mills Mazda recognize that we must keep pace with these trends and expectations.

This blog along with a presence we will be developing on other social media platforms is intended to improve the qualiity of communications with customers and prospective customers in a spirit of building a lasting relationship.  This blog is expected to become a resource for those in the market for a new or used Mazda vehicle as well as those who already own a Mazda and want to keep it running at its peak.

Stay tuned for regular blog entries as we get our online presence rolling at full speed.  We hope you will come along for the journey.