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Tag: Hybrid Cars

  • Toyota’s Hybrid-First EV Strategy Pays Off Even as Tariffs Bite Into Profit

    Koji Sato, CEO of Toyota Group, speaks at a press briefing during the Japan Mobility Show 2025 on Oct. 29, 2025 in Tokyo, Japan. Zhang Xiaoming/VCG via Getty Images

    Toyota has long been criticized for its cautious embrace of electric vehicles. But amid slowing demand, tariffs and the phase-out of tax incentives, the world’s largest automaker’s deliberate approach looks increasingly like a smart hedge.

    The Japanese automaker reported yesterday (Nov. 5) that it sold 4.78 million vehicles globally between April and September, up 12 percent from the same period last year. That included 2.27 million hybrid electric vehicles, a record high. Still, U.S. tariffs took a toll: operating income fell by $3.3 billion from a year ago to $12.5 billion for the fiscal half-year.

    Despite those geopolitical headwinds, demand for Toyota’s reliable passenger cars remains robust. CFO Kenta Kon told investors the company is struggling to keep up with demand, saying it can “barely cover the demand.” According to Kelley Blue Book, dealers typically aim to hold about 60 days of inventory on their lots. Toyota’s U.S. inventory, by contrast, is hovering around 30 days.

    Toyota has long been hesitant to fully commit to battery-electric vehicles, but the company is a leader in the hybrid vehicle space, touting its more conservative, balanced approach to electrification as the right path forward. Battery-electric vehicles are only a sliver of Toyota’s global mix (just 1.4 percent of total sales in 2024). The long-term risk, of course, is that markets like Europe and China, which are racing toward a fully electric future, could leave Toyota lagging behind. 

    The company’s best-selling model, the RAV4, will be offered only as a hybrid or plug-in hybrid beginning in 2026. Retooling factories for the new powertrains will require temporary shutdowns, potentially tightening supply even further. A slimmer dealer inventory could also push up vehicle prices for U.S. consumers in early 2026.

    Toyota’s small steps toward software-driven cars

    The next-generation RAV4 also marks another turning point: it will be Toyota’s first software-defined vehicle (SDV). While startups like Tesla and Rivian built their cars around software from the start, Toyota’s move represents a major step into that domain. The new RAV4 will feature Arene, a Woven by Toyota software platform enabling over-the-air (OTA) updates—an early signal of Toyota’s digital ambitions and a reminder of how far it still has to go.

    In typical Toyota fashion, the rollout is cautious. The 2026 RAV4 will debut features that rivals have offered for years, such as a smartphone-like cockpit interface, conversational voice commands and OTA updates. But those updates will be limited to ADAS systems and cockpit displays, not the deeper vehicle functions that Tesla, Lucid and others regularly tweak via software. The strategy underscores Toyota’s effort to catch up with competitors, especially those in China, which have already made software a core part of their vehicles.

    Toyota now finds itself straddling two eras of the auto industry: one built on mechanical excellence and another driven by software, connectivity and climate regulations. Its hybrid-first strategy has cushioned profits as global EV momentum slows and tariffs rise. But the clock is ticking. If Toyota can extend its hybrid playbook into the software-defined, electrified era it’s hinting at with the new RAV4, it may retain its crown. If not, the conservative approach that once protected it could soon become its greatest liability.

    Toyota’s Hybrid-First EV Strategy Pays Off Even as Tariffs Bite Into Profit

    Abigail Bassett

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  • Is it a good time to buy a new car? – MoneySense

    Is it a good time to buy a new car? – MoneySense

    Sticker prices at dealerships have started to come down and affordability is improving, said Daniel Ross, senior manager of industry insights with Canadian Black Book.

    “The new car market is normalizing faster than the used car market,” he said. “You have the inventory, you have the incentives depending on where you’re shopping and if you were a new car shopper from the beginning, it’s the best situation you’ve had in a long time.”

    Inventory of new cars has built up across the country as prices for newer models climbed and consumers pulled back on big purchases amid high inflation and rising interest rates. Now, manufacturers and dealerships have launched incentives and rebates as they look to clear that supply.

    On new cars, dealerships can offer internal financing from manufacturers and control the rates independently from bank rates, said Sam Fiorani, vice-president of global vehicle forecasting at AutoForecast Solutions.

    “Instead of offering rebates, they lower interest rates which make deals better for the consumer.”

    How availability impacts car loan interest rates

    Homeowners are watching the Bank of Canada’s every move as they hope for lower borrowing rates, but a vehicle purchase works somewhat differently, said Shari Prymak, a senior consultant at non-profit Car Help Canada. When financing through a dealership, the interest rate depends on the given make or model.

    “The rates that the manufacturer sets are mainly tied to the vehicle availability,” he said.

    “If the vehicles have a very good supply, they’ll incentivize the interest rates and bring down the rates,” Prymak said. “But if the vehicle doesn’t have any supply, if it has a long waiting period, because it’s in short supply, the rates won’t be incentivized.”

    The Canadian Press

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  • Best used hybrid sedan: Toyota Corolla Hybrid – MoneySense

    Best used hybrid sedan: Toyota Corolla Hybrid – MoneySense

    Two motors electrify the Corolla Hybrid’s 1.8-litre gasoline engine, turning it into a hybrid engine. The electric motors are connected to the car’s wheels and engine via the transmission, and a battery used to store power for the hybrid engine is located beneath the rear seat.

    The hybrid engine’s electric motors can use electricity from the battery to drive the Corolla’s wheels, in part or in full. At any given moment, this can reduce or even eliminate the need for the gas engine to run, since the car can be driven entirely on electricity in some situations, and partly by electricity in many more. 

    By the way, that hybrid battery recharges automatically as you drive around, it never gets empty and there’s nothing to plug in. As long as there’s gas in the tank, you’re ready to drive.

    The hybrid system is totally automatic and requires no driver decision-making at any time. You can customize the driving experience with different drive modes, and an on-screen visual coach can be called up to help fine-tune the driver’s hybrid driving skills if they like.

    Expect considerably faster acceleration and smoother response versus a non-hybrid Corolla.

    Should you buy a used Corolla Hybrid?

    The Corolla has a pretty stellar reputation for delivering a no-nonsense ownership experience and strong long-term value, and tracking down a second-hand Corolla Hybrid with remaining factory warranty shouldn’t be much trouble.

    Shopping for a Certified Pre-Owned (CPO) vehicle, available only from authorized dealerships, can add peace of mind. To become CPO-certified, used cars must meet certain standards for quality and condition. You won’t get that assurance if buying from a private seller. (Learn more about buying new vs. used.)

    Are there any recalls for the Toyota Corolla Hybrid?

    Transport Canada lists a single recall for the Toyota Corolla Hybrid, for a seatbelt-related fault; it affected fewer than 1,000 cars in Canada. Before you buy a used Toyota Corolla Hybrid (or any car), check online or with your local dealer to see if any outstanding recalls apply to the model you’re considering. And if you do buy the car, contact the manufacturer to register as the new owner. This ensures that any future recall notices make their way to you quickly.

    Check the specific spare tire and mobility provisions included with the used Corolla Hybrid you’re considering, as some owners have sought accessory tire inflators or temporary spare tires to supplement the factory equipment. Specifically, some drivers prefer to carry a temporary spare tire instead of (or alongside) the factory-provided inflator kit. Your needs may vary depending on where and how you drive, but knowing what equipment you have (or need) in the event of a flat tire is important.

    Justin Pritchard

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  • Should you take your vehicle to a car repair shop or a dealership? – MoneySense

    Should you take your vehicle to a car repair shop or a dealership? – MoneySense

    The dealership: Pros and cons

    If your vehicle has a problem that’s covered by the warranty, the dealership is your best  option for repair. Dealership service staff are highly familiar with your vehicle, have completed factory-approved training on it, and have access to its service records, warranty history, repairs, recalls, software updates and a network of other dealerships to consult if needed. Dealerships can also easily access manufacturer-provided data and resources to help effect speedy repairs, even for complex issues.

    Having your car serviced at its dealership helps reduce the chances of certain warranty-related issues, which we’ll dive into later. It also helps ensure your car or truck is up to date on all recalls and software updates, which help it deliver a safer, fully optimized drive.

    Of course, you’re free to have your car maintained and serviced wherever you like. Maybe your favourite tire shop handles your seasonal tire change-overs, and you have your oil changed or suspension repaired at a shop near work over your lunch hour. These relatively low-cost maintenance and repair services (and others including brake jobs, air filter changes and exhaust system repair) are widely available at non-dealership repair shops as well, and may be more convenient. 

    Just remember that, depending on the servicing required, the dealership may be your best or only option. For example, new cars are increasingly built with electronics and systems that require special training and equipment that may only be available at a dealership.

    Image by Drazen Zigic on Freepik

    My typical advice to friends and family is to have their vehicle serviced in a dealership setting as often as possible while it’s under warranty, any time a transmission fluid change is required, for any electronics-related trouble, and for any major servicing of an electric vehicle (EV) or hybrid electric vehicle (HEV), and especially for servicing related to its powertrain or electronics. (More on this below.)

    Plus, if you service and repair your vehicle exclusively at the dealership, you could benefit from improved resale value and an easier, faster sale down the line—which saves you time and money. That’s because you’ll be able to advertise your car as “dealer-serviced with all records,” which gives potential buyers added peace of mind that servicing, repairs and updates are current, warranty-compatible and backed by the vehicle’s dealer network.

    In summary, while you don’t have to service your new vehicle entirely under the dealership’s roof, doing so can help streamline things and save you time. Just remember: If you suspect a warranty-covered problem, contact your dealership first.

    PROS

    • Better access to parts
    • Able to service complex and specialty models
    • All required equipment, parts and training
    • Access to manufacturer resources and tech support 
    • 100% warranty-approved parts and labour

    CONS

    • Often pricier than other options

    Justin Pritchard

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  • Save money, save the planet: Our favourite products and strategies for eco-friendly living – MoneySense

    Save money, save the planet: Our favourite products and strategies for eco-friendly living – MoneySense

    Clean with cheaper, greener cleaning products

    I’m a die-hard fan of Tru Earth laundry strips, which are detergent without the liquid and the bulky plastic bottle. They’re really easy to use—just tear off a strip and toss it into the washing machine as it fills up. Tru Earth sells three package sizes. I order the mega-pack of 384 strips ($149, which works out to $0.39 per load before sales tax), and I split it with friends. I like the fragrance-free option, but you can also choose “Fresh Linen” and “Lilac Breeze” scents. The strips are free of parabens, phosphates, dyes and bleach, and they’re hypoallergenic and vegan. Plus, Tru Earth is a Canadian company, and it also makes eco-friendly fabric softener, dishwasher tabs and more.

    —Jaclyn Law, managing editor

    Eliminate paper towels

    Swedish dishcloths are great for wiping kitchen counters or tables. Made from cellulose and cotton, they’re anti-bacterial, super-absorbent and fast-drying, and they last for months—vendors claim they replace 15 to 17 rolls of paper towels. They’re also machine-washable (dishwasher or washing machine), and they come in loads of fun, colourful designs. And when you’re done with them, they’re compostable and biodegradable. Swedish dishcloths cost about $3 to $8 each, and they’re widely available from retailers like Canadian Tire, iQ Living and Nellie’s Canada. They make great gifts, too!

    —J.L.

    Dry laundry the old-fashioned way

    I like to hang clothes and towels until they’re almost dry, then give them a five-minute tumble in the dryer at low heat for softness. Since we moved last summer, we no longer have a clothesline or even a good place to hang one. We may have to just get a drying rack we can put on the deck.

    —Michael McCullough, acting editor

    Cut dishwasher tabs in half

    We chop our dishwasher tabs in half. A full tab leaves a soapy residue that can result in mould buildup over time. It’s not necessary to use the whole tab unless you have hard water (water with a high mineral content). An appliance repairman recommended this.

    —M.M.

    Downsize your living space

    My environmental footprint shrank dramatically when I downsized. My 750-square-foot bungalow requires way less energy to heat and cool than my old three-storey townhouse. On winter nights I crank down the thermostat and use an electric blanket to keep warm.

    —Stephanie Griffiths, CFA, consulting editor

    Invest in energy-efficient heating

    Our big green investment since moving was converting from an old oil furnace to a heat pump, along with improving the ductwork, windows, etc. We also installed an efficient wood-burning fireplace insert to provide heat during power outages.

    —M.M.

    Bundle up and turn down the heat

    I’ve decided to make use of the cozy gifts from the holidays. Things like slippers, reading socks, weighted blankets and oversized hoodies always felt like a waste of money and definitely not things I would buy for myself. But in working from home, I’ve decided to make use of them. Other than being super comfy, I’ve noticed that my thermostat is three to four degrees lower than it was before. When added up, I discovered that it saves me almost $75 a month.

    —Lisa Hannam, editor-in-chief

    Reduce your fuel and energy consumption

    Both our family vehicles are Toyota hybrids, which is as much a gas-expense-saving strategy as an environmental or status gesture. When driving in ECO Mode, you can further improve gas mileage. Inside our home, we use appliances during periods when electricity costs less and run things like dishwashers or washing machines on eco-mode to save water and energy.

    —Jonathan Chevreau, investing editor-at-large

    Become an amateur trash collector

    We live by the lake and walk along it every day, appreciating the beauty of the trees and water. We take the time to pick up other people’s garbage, mostly plastic water bottles and cardboard coffee cups, which are eyesores, especially the bright red Timmie’s cups and green Starbucks cups. This is not a great hardship as garbage cans are regularly distributed along the way, making us wonder why so many people litter when it’s a 10-foot walk to a nearby bin. We operate on the broken window theory: if a window broken deliberately is not fixed ASAP, vandalism soon spreads. Same with litter: if there are more than two or three bits of garbage, people seem to feel less compunction about adding to the litter.

    —J.C.

    Enjoy eco-friendly homemade bottled water

    I find the little things you do can multiply over time and pay big dividends. Kind of like saving or paying down debt, a little bit at a time. We use a sparkling water maker at home with reusable bottles. It saves money, it produces less waste and it is much healthier than soda or juice. Since it is something we can use every day, it makes a big cumulative impact on our environmental footprint. It is amazing how bottled water has become such a big market, especially in a country where our tap water is pretty good. A filtration system and water flavour drops can make your tap water taste great.

    —Jason Heath, CFP, columnist and consulting editor

    Eat less meat

    For me, vegetarianism is a personal preference rather than an eco-strategy. Yet studies show avoiding meat and dairy is the single most effective way to reduce your environmental footprint. Side effects may include improved health, reduced cruelty to animals and lower grocery bills. What’s good for the planet is good for me, too.

    —S.G.

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    About MoneySense Editors

    MoneySense editors and journalists work closely with leading personal finance experts in Canada. Since 1999, our award-winning magazine has helped Canadians navigate money matters.

    MoneySense Editors

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  • The real costs of buying a car – MoneySense

    The real costs of buying a car – MoneySense

    Mark Kalinowski, a credit counsellor and financial educator at the Credit Counselling Society, says you need to know what you can afford when it comes to a car loan. “If you can’t pay for it and they repossess it, well, now your credit’s ruined for a long time,” he said. You can only afford so much credit based on your income level, so if you take on a car loan, that will eat away at other borrowing capacity such as a mortgage, Kalinowski said. 

    How much is a car? Add interest, among other things

    When shopping for a car, the numbers can come fast and furious and they can add up quickly. It’s important to keep the total cost of the vehicle in mind, Kalinowski said, not just the monthly or biweekly payment you will have to make. “One of the big things you see in dealerships is they don’t sell you the price of the car, they sell you the payments,” he said. 

    Additions like an extended warranty and undercoating may only add a few dollars a month to your payment, he says, but they can pile up to add significant costs to the overall price. “They’re going to roll [it] into the financing, so now you’re gonna pay interest on it as well,” he said.

    Gone are the days of easy credit and dealership offerings of 0% financing for new cars and trucks, so it’s important to shop around to ensure you’re getting the best deal you can on your loan, said Natasha Macmillan, director of everyday banking at Ratehub.ca.

    “It can save hundreds to thousands of dollars or more for a car or anything like that,” she said. 

    Compare personalized quotes from Canada’s top car insurance providers.All in under 5 minutes with ratehub.ca. Let’s get started.*You will be leaving MoneySense. Just close the tab to return.

    Should you get a car loan from your bank or the dealership?

    Kalinowski said borrowing from your bank instead of using the dealership financing may also give you some additional bargaining power.

    Macmillan added that a better credit score typically means a better interest rate, so if you delay your purchase to give yourself time to improve your rating, it could save you money.

    The term of the loan is also key. A longer term will mean lower monthly payments, but will raise the overall cost of the vehicle because you will be paying interest on the amount you borrow for longer.

    Kalinowski said his father told him not to borrow money to buy a new car for a longer term than the vehicle’s warranty.

    The Canadian Press

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  • Canada’s auto theft crisis: What it means for your ride and your insurance – MoneySense

    Canada’s auto theft crisis: What it means for your ride and your insurance – MoneySense

    Five years ago, auto insurance companies in Ontario, Quebec, Alberta and the Atlantic provinces paid out $400 million in theft claims. In 2022, that figure ballooned to $1.2 billion, the worst on record. Amanda Dean, interim vice president of Ontario region for the Insurance Bureau of Canada, says the situation isn’t likely to improve for 2023. 

    “As theft rates increase, and along with it claims costs, insurers are certainly worried about what the future could hold,” she says. For drivers, even those with no history of theft or damage, auto insurance is likely to get more expensive so long as theft rates remain high. Fortunately, experts say there are some things drivers can do to minimize their chances of losing their ride. 

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    Why car theft is on the rise across Canada 

    Joyriders and opportunists aren’t responsible for most Canadian car thefts, according to insurance experts. Organized crime groups, using sophisticated techniques, bear much of the blame for Canada’s billion-dollar-a-year auto theft problem. 

    Bryan Gast is the vice president of investigative services for Équité Association, a national not-for-profit that helps Canadian insurers fight fraud. He says one common technique is a relay attack: intercepting the radio frequency used by a key fob to unlock a car remotely. Another is by using the electronic diagnostic port found under a car’s steering wheel to reprogram the car. 

    Once inside, a thief can drive away with your ride and sell it off. In the most extreme cases, it may end up smuggled through a port—generally on Canada’s eastern seaboard, Gast says—and shipped to West Africa or the Middle East. “We have thousands of vehicles, that have been identified, that we’re working to repatriate back to Canada,” Gast says. 

    Alternatively, a car might be given a false vehicle identification number (VIN) and used as a car by an organized crime group for its operations. Then there are old-fashioned “chop shops,” where stolen cars are stripped down and sold off for parts. “It’s extremely lucrative,” Gast says.

    Experts blame a couple of factors on the rise in auto thefts over the past few years. Dean points to outdated anti-theft standards for Canadian vehicles—the last update, in 2007, was before keyless entry became a common feature on many cars. Then there’s the price of cars themselves. Thanks to persistently-high demand, the average new vehicle cost $66,288 in June 2023, according to Autotrader. 

    The most stolen cars in Canada

    Many of the most-stolen vehicles in Canada aren’t all that flashy. Gast says the models vary by region. In Alberta, for example, pickup trucks are high on the list. According to Équité Association, the most commonly stolen vehicle model in Canada last year was the Honda CR-V. The Ford F-150, Honda Civic and Toyota Highlander—all mainstays of Canadian driveways—made the list of top five most stolen vehicles, as did the Lexus RX, a higher-end model.

    Even if you don’t own one of these vehicles, Dean says you’re still on the hook for the ongoing auto theft epidemic. “Claims made by the few are paid for by the premiums of many—this is one of the basic principles of insurance to ensure that claims can be paid.”

    Brennan Doherty

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