View Full Version : US vs Canadian Prices on Cars.. LAME UN FAIR!!
Since Our Dollar has been Close to the US dollar for quite some time now what is with car prices not falling to match the US price.. Its so much cheaper to get a car in the USA then import it up here and you still save.. alot!!
Example: I have a friend looking to get a new Honda s2000 Candian they start at $50,600.. in the USA $34,250
So lets to some conversion
34,250.00 USD = 34,722.04 CAD + about $2000 to bring it to canada so in the end he is looking at somewhere in about $37,000 so he ends up saving over $10,000 buying the car in the US...
Look at the Mazda Speed 3 in the USA $23,000 = 23,310 CAD and if you buy the Car in Canada $31,000 I don't get it at all??
So why so much cheaper in the US and no price drop here in canada to match??
Their are so many other cars that fall into the same boat as what my friend is looking to do.. even the Entry level Model Mazda 3 is alot cheaper in the USA.. and cheaper to bring across the boarder..
JonsMazda
09-20-2007, 12:07 AM
Thats it! Buffalo roadtrip anyone?
S.F.W.
09-20-2007, 01:27 AM
I think you are forgetting you will also pay sales tax of 14%, when you cross, so add another $4900.00. It is still cheaper though, no doubt.
I think you are forgetting you will also pay sales tax of 14%, when you cross, so add another $4900.00. It is still cheaper though, no doubt.
Yes but you still have to pay the Taxes here in Canada as well..
Skarbro
09-20-2007, 06:15 AM
Yes but you still have to pay the Taxes here in Canada as well..
Sounds like you are talking about the same thing as SFW.
Razzaq
09-20-2007, 06:16 AM
I am actually in a process of going down to the states and picking up a car for my sister. i have been reading through a lot of information on the US customs website and Canadian Websites. The information is kind of confusing me and I am just thinking that it seems a lot of work and rules/regulations to simply import a car from the US. Has anyone ever brought a brand new car from the states? If so then do you mind explaining to me the procedure in plain English and what is required of me and whether if i should go for it or not? THANKS!!
I know my friend that is looking at the honda s2000 in the US It will cost him about $2000 to bring it here mind you thats not taxes but you have to pay them here too if you bought the car in Canada.. but the $2000 includes a broker that does this all the time.. the paper work that is.
CanadaGTO
09-20-2007, 08:51 AM
I know my friend that is looking at the honda s2000 in the US It will cost him about $2000 to bring it here mind you thats not taxes but you have to pay them here too if you bought the car in Canada.. but the $2000 includes a broker that does this all the time.. the paper work that is.
They'll be a duty charge on the car too since it is made outside North America and is not covered under NAFTA. An extra 6.1% I believe.
Still well worth it though :)
bluntman
09-20-2007, 08:58 AM
Plus tax when you plate it up here.
Wild Weasel
09-20-2007, 09:17 AM
When I worked it out months ago, before our dollar jumped up, it came out to be about the same for me to buy it there as to buy it here, but I'd have got the nav system in it.
The barrier for me ended up being insurance. I couldn't find a way to buy the car and drive it back. If I'd have had it shipped here from the States, then the price would have been too high.
Of course, today it would be worth it even to ship it.
midnightfxgt
09-20-2007, 11:38 AM
Is the S2000 not made in Orillia? Or is it still made in Japan?
Paying tax is nothing.... factor in the fact that you pay tax regardless. Buy a new car for $25K CDN and pay 14% or buy the same in the US for $20K USD, and pay tax. I know I would rather pay tax on the amount that is 5K less. Also the freight, and PDI charges are much lower south of the boarder.
-John
JonsMazda
09-20-2007, 11:45 AM
Hope this explains all..
http://www.redflagdeals.com/forums/showthread.php?t=307601
midnightfxgt
09-20-2007, 12:03 PM
Great thread... I have been following it off and on for a month. Over 300 pages though!
KenYork
09-20-2007, 01:17 PM
Don't forget the warranty issues.
Jeff-TheBiz
09-20-2007, 04:01 PM
The prices in Canada will never be adjusted to match the dollar.. It would affect residuals on the previous 4 yrs of leases and cost millions!
The example I have been using is magazines, in Canada $7.95 in the USA $4.95 but now one expects Chapters to lower the price and charge $4.95 because they paid $6.18 cost.
The price of a specific car to a dealer is the same today as it was when it came out 13 months ago.
All things considered, great way to same money, a buddy of mine just bought a Lexus will he was on vaction and drove it back, he saved $15,000+
But he had to pay cash, and he needs to keep it until at least 10 yrs or he will lose his saving when he trades it in.
midnightfxgt
09-20-2007, 04:06 PM
Yes, Careful of Warranty.
For example... mazda has a 3yr/36000 mile warranty in the US. Its crap! It is transferable to Canada, and will be honoured here. However Mazda (like other manufacturers)has instructed US dealers NOT to sell new cars to non-US residents. You may still find a dealer who will do it, but most wont for fear of loosing the contract. Honda, and Acura and others do NOT transfer Warranties. 6.1% duty is charged on Non-NA built cars too
-John
kid_icarus
09-20-2007, 04:06 PM
The prices in Canada will never be adjusted to match the dollar.. It would affect residuals on the previous 4 yrs of leases and cost millions!
The example I have been using is magazines, in Canada $7.95 in the USA $4.95 but now one expects Chapters to lower the price and charge $4.95 because they paid $6.18 cost.
The price of a specific car to a dealer is the same today as it was when it came out 13 months ago.
All things considered, great way to same money, a buddy of mine just bought a Lexus will he was on vaction and drove it back, he saved $15,000+
But he had to pay cash, and he needs to keep it until at least 10 yrs or he will lose his saving when he trades it in.
I HAVE A PROPOSAL!!!
I SUGGEST THAT JEFF THE BIZ begin his own CAR IMPORTING COMPANY to bring in cheap vehicles for us from across the border.
He will be our US Car Consultant and we will pay him 2% commission on every vehicle.
The RX-8 in the states is dirt cheap too compared to canada...
BIZ what do you say? New Job?
You start your own sales company haha
JonsMazda
09-20-2007, 04:24 PM
I HAVE A PROPOSAL!!!
I SUGGEST THAT JEFF THE BIZ begin his own CAR IMPORTING COMPANY to bring in cheap vehicles for us from across the border.
He will be our US Car Consultant and we will pay him 2% commission on every vehicle.
The RX-8 in the states is dirt cheap too compared to canada...
BIZ what do you say? New Job?
You start your own sales company haha
OH OH...can I be vice-president?? :chuckle
Jeff-TheBiz
09-20-2007, 04:34 PM
I may need a Service Manager as well...
Anyone think Joe would be okay?
JonsMazda
09-20-2007, 04:36 PM
I may need a Service Manager as well...
Anyone think Joe would be okay?
Joe would be great for the job. :chuckle
kid_icarus
09-20-2007, 04:55 PM
Joe would be great for the job. :chuckle
Can I be the accountant?
I will cook the books and make sure the government never taxes you.
then when the going gets tough I will leave the company and you will be arrested by the same ppl who arrested Conrad Black haha.
So Jeff when do you plan to start this business? I imagine we can run it from your home... that or your garage.
Joe can work out of the driveway lol.
You won't even have startup costs, we'll help you market for free.
KenYork
09-20-2007, 05:03 PM
I may need a Service Manager as well...
Anyone think Joe would be okay?
Who will do the servicing?
The example I have been using is magazines, in Canada $7.95 in the USA $4.95 but now one expects Chapters to lower the price and charge $4.95 because they paid $6.18 cost.
The price of a specific car to a dealer is the same today as it was when it came out 13 months ago.
It would have to start at the manufacturer adjusting what they charge the warehouse, then to the retailer and on to the consumer. My store has 4 inventory turns a year. So even if it took 3 months to adjust pricing I think it is something that should be done otherwise money will be flowing out of the country and in turn affect our jobs. I know it won't be pretty if people flow to the states to buy the same product I sell. It could affect the 25+ people that work with/for me.
S.F.W.
09-20-2007, 08:48 PM
Who will do the servicing?
MacGuyver can do the actual service
mazza
09-21-2007, 08:14 AM
Does anyone have first-hand info about Mazda Canada honoring US warranty? This reference says no warranty coverage:
http://www.apa.ca/template.asp?DocID=253
Wild Weasel
09-21-2007, 08:19 AM
I called Mazda Canada and they said they would honour it without issue. This was one of the things I was very interested in when I was looking into importing the car.
Not sure why that page says otherwise. Perhaps it's out of date or something has changed?
MikeyGT
09-25-2007, 01:08 PM
Does anyone know if you have to change teh speedometer if you get US car? I know US cars have the american system on top. I'm not sure when you do car inspections if they require you to change that
midnightfxgt
09-25-2007, 01:19 PM
No need to change it.... it has KMs and Miles. So long as it has KMs, your fine. Just have to live with the fact its smaller :)
zedtech
09-26-2007, 02:28 PM
Automakers sued over car price disparity
September 26, 2007
THE CANADIAN PRESS
North American auto manufacturers have been slapped with a $2-billion class action lawsuit by four Toronto residents who claim the auto industry conspired to inflate the price of automobiles in Canada, in an effort to discourage cross-border vehicle shopping on the strong Canadian dollar.
The suit, filed by Toronto-based law firm Juroviesky and Ricci, covers consumers who bought cars between August 2005 and August 2007.
They say they forked out more money to buy cars in Canada than similar or identical models sold for in the United States.
Named in the lawsuit are the Canadian and U.S. divisions of General Motors (NYSE: GM), Honda, Nissan and Chrysler.
Also named in the suit are the Canadian Automobile Dealers Association and the National Automobile Dealers Association, a U.S. partner based in Virginia.
The plaintiffs called the plan between automakers a "conspiracy" that involved agreements between the companies designed to minimize cross-border competition and the number of new cars that crossed the border.
Included in the allegations are claims that the automakers agreed not to honour warranties for vehicles purchased across the border, forcing Canadian consumers who wanted a manufacturer's warranty to pay 25 to 35 per cent more on average for a vehicle in Canada.
None of the allegations has been proven in court.
http://www.thestar.com/printArticle/260793
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