July 20, 2004
Average Canadian new vehicle price now higher than in U.S.
Toronto, Ontario – The average Canadian new vehicle MSRP, adjusted for the exchange rate, is now $773 more than the average price in the U.S., according to a new survey by Desrosiers Automotive Reports.
“Beginning in 1999, and for six consecutive years, we have done an MSRP price comparison between vehicles in the U.S. and Canada,” said President, Dennis Desrosiers. “Until this year, prices in Canada, adjusted for exchange rates, have been considerably lower in Canada than in the U.S.” he said.
Desrosiers said that vehicles became much less expensive in Canada because of the weakened Canadian dollar. In the last year, the strengthening Canadian dollar has eliminated the price differential in many segments.
“However, the gap between specific segments is now very large,” adds Desrosiers.” “For example, in our 2004 analysis large SUVs are $7,559 more expensive in Canada than in the U.S.” “If you eliminate the bias caused by these low volume vehicles, and just look at high volume vehicles (subcompact, compact, intermediate, compact SUVs, intermediate SUVs, and minivans), there still would be a price advantage for Canadian consumers.” Desrosiers said the MSRPs of high volume vehicles were $341 lower in Canada than in the U.S. in 2004.