Despite all the taxes, apparently Canadians are a pretty rich lot!
If VW really wanted to sew up the Canadian market - all they would have to do is start offering VW's at the US MRSP at the current US/CDN exchange rate.
US MRSP: 2007 Rabbit 4D - MT w. Alloy wheels: $17,390 US (vw.com)
CDN MRSP: 2007 Rabbit 5D MT alloys + conv package*: $22,100 CDN (vw.ca)
*the extra options are standard in the US.
Using the current exchange rate of 0.89 US/CDN or 1.12 CDN/US we find the CDN MRSP should be: 19,477. That's about $2,700 less than the current CDN price.
That's way too much of a premium for being Canadian - it should be about
0.
Lets not forget, in addition to paying an extra $2,700 than Americans, we also get dinged for extra taxes and (if financed) extra interest on the difference (in ON about an extra 380 tax and probably an extra 400-600 in interest). That's a total of about $3,500 CDN more for a $19,500 vehicle.
A rich lot indeed.
As for the resale value of your older Golf's and Jetta's .. perhaps you can sell it quick to one of the same people buying new cars at these inflated prices (not just VW's) then take a trip to the US and buy a new one. Although I would recommend looking at North American built cars like the civic and matrix because there would be no 6.1% excise tax.
Gotta love them rich, pumpkin-headed people - walking onto lots wondering how much per month for a shiny new car.
As long as there is a steady queue of them I will continue to spat at when offering the US MRSP (cash) for a new car here in Canada. Seriously - you would think I was wrestling a meaty bone from a rabid animal offering them full US price.
I'll give manufacturers another month or so of happily gouging Canadians before the Competition Bureau recieves too many calls. Maybe then they'll update the CDN pricelists.
BTW - This is not an anti-VW rant - all automanufacturers are doing it right now - Toyota, who I think is the number one seller in Canada, and according to my calculations, being the worst.
Happy Halloween,
R.
