Topic: '07 Santa Fe Pricing

[dorin]

Huh?  Very few Civics in Ottawa?  Where in town do you live?  I see tons of new Civics in the Glebe.  I haven't noticed that many Sonatas, but I wonder if that's because there aren't that many out there or because they're so, well... bland.  Don't get me wrong, the new Sonata is pleasing enough but it definitely doesn't stand out at all.

[G0dspd]

There's a shiatload of Civic in Ottawa ... but not that much of the latest edition.  You see a one or two here and there.  The Sonata is not easy to notice ... blends in traffic.

Saw 2 VW Rabbits in Orleans last night ... grey and black/deep blue.

[dorin]

Lots of new Civics in my neck of the woods....

[sens2k]

First off to "Guy"......yes when you do straight conversion of US car prices to Canadian there is a difference.....and even though with some of the luxury cars being upwards of 10 grand cheaper in the states after the currency conversion you won't be saving much if any money......if you buy it in the states not only do you pay the tax there, but when you bring it across the border that purchase is subject to more taxes and tariffs thereby virtually eliminating the savings you thought you had.....it is almost always not worth the trouble to buy across the border.

As for Civics in ottawa....I see them everywhere...mostly the previous model styling but I am seeing more of the new ones all the time. I have only seen one Entourage on the roads but as for Santa Fe's and Tucsons I am seeing them at every intersection.........I can't go to an intersection without seeing atleast one.

The new 07 Santa Fe does look great. They are now in most showrooms...I know here in Ottawa that Pathway Hyundai and WestOttawa Hyundai have them in now.........(I'm actually taking one for a test drive on thursday)......With all that I have seen, read, and researched it looks like a good buy. Because of the size enlargment it is now in competition with the Pilot and Highlander......but the Santa Fe costs 10,000 less with more standard features (including safety features).....so for me know it comes down to the quality of the interior as far as materials used and comfort.....not to mention the test drive....how the Santa Fe handles and feels will be deciding factors.

[dorin]

if you buy it in the states not only do you pay the tax there, but when you bring it across the border that purchase is subject to more taxes and tariffs thereby virtually eliminating the savings you thought you had.....it is almost always not worth the trouble to buy across the border.

Umm, no!  If you buy a vehicles in the US in order to export it then you don't pay US taxes and you'll only have to pay Canadian taxes.  The same that if you buy a car in Quebec but live in Ontario, you end up only having to pay Ontario PST, not Quebec and Ontario PST.

[sens2k]

Some states you still have to pay the state tax....but yes you are correct that you don't have to pay the american sales tax in most states.......HOWEVER when you do import the car from a US dealership (particularly if your are a private buyer) not only do you pay the taxes here on the sale price but also you get hit with additional levies and tariffs on top of everything else.......and these tariffs etc greatly reduce any such savings you thought you were going find. Leaving Canada and going to the US to buy a new vehicle and then bring it back across the border can be very costly and not worth the hassle In most instances you are better off buying a vehicle from your local dealership or atleast one within the country/province.........

[Guy]

Some states you still have to pay the state tax....but yes you are correct that you don't have to pay the american sales tax in most states.......HOWEVER when you do import the car from a US dealership (particularly if your are a private buyer) not only do you pay the taxes here on the sale price but also you get hit with additional levies and tariffs on top of everything else.......and these tariffs etc greatly reduce any such savings you thought you were going find. Leaving Canada and going to the US to buy a new vehicle and then bring it back across the border can be very costly and not worth the hassle In most instances you are better off buying a vehicle from your local dealership or atleast one within the country/province.........

All wrong information. No tax when you buy in the states. You pay the GST at the border and also the $100. excise tax on the AC. + a $200 fee. If the vehicle is assembled in the US (The Santa Fe is) then there is nothing else at the border. You then pay your provincial tax when you license the vehicle in your province.

If the vehicle is not made in North America, then a 4 or 6% tariff applies. The price difference and the competitivity of the US market on some vehicles is such that it is sometimes well worth it to import.

I contacted a US dealer and was quoted $32K  US on a Volvo XC70, quite well equipped. The same car retail for $54K here with the same options.

Lets do the maths now. At the current rate $32K US = $35,800 cdn. Lets add 6% then it is $37,948. The tax on the AC = $100. and the $200 tariff so we are now at $38,248. CDN

You then pay the same GST and PST as if you bought it in Canada. So the Canadian Car with taxes is in Quebec: $61,533. The same car bought in the US is $43,584. , a difference of $17,949.

Go to www.riv.ca to get the real, official information.

BTW, are you a car dealer or salesman?

[sens2k]

I am neither a dealer or a salesman.

First my last post you quoted says right in it that in some cases it is worth it to import from the US.We agree on that so I don't understand why you make it seem like it is your point and that I am completely against importing.

Alright why don't we start off with using the actual numbers from official sources. XC70 (Identical models) retails in the US for $34,420....here in Ontario $47,495.

Now I'll plug in the numbers exactly as you did
The XC70 34,420 (US) converted to Canadian Currency = 39035.72 plus 6% @ border = 41377.86...now let's add AC= $100 tariff = $200 so now we are at 41677.86.....Now you have to register the vehicle and pay the tax then so let's add the tax...that brings you up to $47512.76......and don't forget you can't register the vehicle until it passes inspection and has had the necessary modifciations made to bring it up to provincial/Canadian code.....The cost for this varies significantly on all vehicles imported.....but let's low ball it for now and say $1500 in parts&labor......49012.76. So that's the cost before inspection.....oh and did I mention that IF you pass that inspection and are permitted to license and register the vehicle that you may also be required to have a Provincial/territorial regulated inspection performed...at your cost of course. AND all of the payments/modifications/inspections must be completed within 45 days of importing the vehicle. Otherwise your applications can be revoked and the car not allowed to be driven in Canada. Low ball estimate for the American import is $49012.76 (realistically though it's probably going to cost about 1-2 thousand dollars more than that when all is said and done - depending on the actual cost of ALL modifications)

The XC70 ($47,495) bought in Canada comes out around $54144.30

So yes there is a $5000 dollar saving on this vehicle (but that is after giving a low ball estimate on the parts and labor...I mean getting a bumper fixed costs around $1000 bucks here....having an exhaust system altered that usually costs more - and that's only the most obvious of any modification that would be made) On top of that something that you have neglected to mention are the implications to the validity of your US Warranty.....It does not remain intact and there are penalties.....most of the time your Warranty that is valid in the US takes a major hit that can really reduce your overall coverage if not void it all together. Manufacturer's look for any loop hole they can find to get out of a warranty....making modifications to the vehicle can fall under that category.

Oh and one last thing........there are also the fees for obtaining the proper documents from the US Authorities and the fees for filing documents, just to be able to get across the border...we are dealing with government agencies here people...they tax and add fees to everything.

So in the end (with the low ball modification figure) you are saving $5000 (not $17000) but have provided yourself with alot of additional aggrivation, time, time restraints and not to mention a warranty not equivalent to the one you would of had if you bought localy. $5000 is not enough of a saving to get me to import a vehicle to save what you could have easily negotiated off the original purchase price from a local dealer. To me the warranty implications alone is enough to desuade me...because you know down the road you are going to need it. It would have to be a great deal one that saw a savings of over 15,000 to even make it worth while and even then the warranty implications would concern me. Mechanic and repair costs are significant.   

[Guy]

For the Volvo, no modifications are required and I have checked, the full warranty applies.

[sens2k]

well then that's a different story.if the warranty is not affected and will be honored, and there aren't any major modifications that need to be made....and it's for a price that is less then what you would be able to negotiate at a local dealer......then of course go for it. But still alot of manufacturers are cracking down on this, like Honda and Toyota, that will prevent you from purchasing in the US to turn around and bring it directly into Canada.

In the case that we've been discussing (Volvo XC70) I would turn around take this information with me and use it as leverage to negotiate an even better price.....but of course some dealers won't do it if the US purhcase has an astronomical savings.