How It Works
Transparent methodology behind Canada's most accurate automotive calculators
Our Calculation Philosophy
NewSUV.net calculators combine CRA-level tax precision with real-time Canadian data integration. Every calculation is transparent, verifiable, and based on official government and financial institution sources.
1. New Car Purchase Savings Calculator
What It Calculates
Shows your potential savings when negotiating below MSRP, including accurate provincial tax calculations and drive-away totals.
Methodology
Savings Calculation:
Savings = MSRP - Negotiated Price
Savings Percentage = (Savings / MSRP) × 100
Provincial Tax Application:
HST Provinces (ON, NB, NS, NL, PE): Tax = Price × HST Rate
GST+PST Provinces (BC, MB, SK): Tax = (Price × GST) + (Price × PST)
Quebec: QST = (Price + GST) × QST Rate (tax on tax)
Alberta: GST only (5%), no provincial tax
Drive-Away Total:
Total = Negotiated Price + Provincial Tax + Trade-In Adjustment
Special Rules
- Trade-in value is deducted from taxable amount in most provinces
- Quebec's QST is calculated on price + GST (compound tax)
- Dealer incentives are applied before tax calculation
2. Lease vs Buy Calculator
What It Calculates
Compares total costs and monthly payments for leasing versus purchasing, using Canadian lease terms and residual values.
Lease Calculation Methodology
Monthly Lease Payment:
Depreciation = (Vehicle Price - Residual Value) / Term
Finance Charge = (Vehicle Price + Residual Value) × Money Factor
Monthly Payment = Depreciation + Finance Charge + Tax
Total Cost = (Monthly Payment × Term) + Down Payment
Purchase Calculation Methodology
Monthly Loan Payment:
Loan Amount = Vehicle Price + Tax - Down Payment
Monthly Rate = Annual Rate / 12
Payment = Loan Amount × [r(1+r)^n] / [(1+r)^n - 1]
Equity = Vehicle Price - Remaining Loan Balance
Recommendation Logic
- Lease recommended if: Lower monthly payment AND driving under mileage limit
- Buy recommended if: Building equity OR planning to keep vehicle 6+ years
- Savings calculation shows difference in total cost over comparison period
3. Auto Loan Payment Calculator
What It Calculates
Calculates monthly payments, total interest, and amortization schedules using Bank of Canada prime rate as baseline.
Methodology
Standard Amortization Formula:
Monthly Payment = P × [r(1+r)^n] / [(1+r)^n - 1]
Where:
P = Loan amount (price + tax - down payment)
r = Monthly interest rate (annual rate / 12)
n = Number of payments (term in months)
Payment Frequency Adjustments:
Biweekly = (Monthly Payment × 12) / 26
Weekly = (Monthly Payment × 12) / 52
Interest Rate Context
We display current Bank of Canada prime rate and typical auto loan spreads:
- Prime + 2-3%: Excellent credit (750+ score)
- Prime + 3-5%: Good credit (650-749 score)
- Prime + 5-8%: Fair credit (600-649 score)
4. Operating Expenses Calculator
What It Calculates
Estimates total annual and monthly operating costs including fuel, insurance, maintenance, and registration fees with provincial variations.
Cost Components
Fuel Cost:
Annual Fuel = (Annual km / 100) × Fuel Economy × Fuel Price
Insurance Cost:
Based on provincial averages with adjustments for:
- Public vs. private insurance systems
- Vehicle type and value
- Regional cost variations
Maintenance:
Estimated at 3-5% of vehicle value annually
Adjusted for warranty coverage
Registration & Fees:
Provincial registration costs + annual fees
Data Update Frequency
Daily Updates
- • Bank of Canada prime rate
- • Provincial fuel prices
Monthly Updates
- • Provincial tax rates (CRA)
- • Vehicle incentives
Quarterly Updates
- • Insurance cost estimates
- • Residual value tables
Annual Updates
- • Fuel economy ratings (NRCan)
- • Vehicle specifications
Accuracy Commitment
We verify our calculations against official sources and update our methodology when regulations change. If you find a discrepancy, please report it to accuracy@newsuv.net