June 23, 2006
Canadians pay 17% more for vehicles than Americans, analyst says
Richmond Hill, Ontario – A typical vehicle is priced 17 per cent higher in Canada than the United States when the exchange rate is factored in, says industry analyst Dennis DesRosiers. His report states that Canadians pay $5,842 more for an average vehicle.
“Many manufacturers obfuscate the equivalency issue by offering alternative trim levels or options packages in Canada and the U.S.,” DesRosiers says, “but our study takes those potential differences into account by comparing base models and/or fully-loaded versions. The definition of ‘base model’ (or even ‘loaded model’) in each country can be very different, and this analysis does not take all of these differences into account. However, we think that it gets you into the ballpark. It’s certainly close enough to understand price differentials between countries.”
DesRosier’s firm began doing this analysis in 1999, when vehicles were generally cheaper in Canada than in the U.S.; that year, the average Canadian vehicle was $3,167 (all figures Canadian) less expensive than its U.S. counterpart.
“To take this down to a more comprehensive level,” DesRosiers says, “consider the case of the Subaru Impreza WRX. In Canada, this sporty sedan lists for $35,495, while in the U.S., it bases at $24,995