Hi Guys!!
I hope you're OK.I thought some of you might find the following interesting.
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CANADIAN PRICING OVERVIEWAt Chrysler Canada, we price our vehicles specifically for the Canadian market, taking into account a host of factors unique to the Canadian market. At times, the fact that we price our vehicles independently, combined with fluctuating exchange rates, has resulted in our MSRPs being higher or lower [?] than MSRPs in the United States. However, MSRPs are not the best basis for comparison between Canadian and U.S. pricing. As detailed below we offer tremendous value to our consumers with aggressive finance and lease offers, recognizing that the Canadian public is concerned primarily about their monthly payment as 90%(1) of Canadians finance or lease their new vehicle. Our competitive position and value story is well documented as we close in on our all-time record-tying 15th consecutive month of year-over-year sales growth.
With all of the recent press coverage on Canadian pricing and importing new vehicles from the U.S., its important to outline the facts, including the advantages that Canadians have.
1. IMPORTING A NEW OR USED VEHICLE HAS HIDDEN COSTS Importation Fees from the Canadian Registrar of Imported Vehicles ($206.70; $222.21 in QC)
Modification/Homologation Costs (Daytime Running Lights, Metric Clusters)
GST, Levies & Air Tax must be paid at the border; PST/QST is to be paid when vehicle is registered
Unlike a lease, the taxes are not able to be residualized or rolled into your monthly payments
Green Levies are applicable on imported vehicles
Not able to trade-in your used vehicle in the U.S. 1/3 of all Canadians trade-in a vehicle(2)
Unable to receive the benefit of a Tax reduction as a result of using your vehicle as a trade-in towards a new vehicle in Canada (ie. a $20,000 trade-in on a $40,000 vehicle cuts your payable taxes in half saving the Canadian consumer approximately $2,800)
Transportation costs to ship the vehicle from the U.S. can add up to $1,500
Customers must provide the title to Customs 72-hours in advance of crossing
2. IMPORTED Chrysler VEHICLES ARE NOT ELIGIBLE FOR ANY U.S. OR CANADIAN INCENTIVES All U.S. incentives (cash allowance, finance, lease) are Residency Based require a U.S. address
Imported vehicles are also not eligible for:
Chrysler Canada Delivery Allowance, Finance, Lease Rates
Chrysler Canada Programs Lease Pull-Ahead, Accelerator, Performance Programs
3. IMPORTED VEHICLES CAN COST THOUSANDS MORE TO FINANCE Financing a loan or line of credit at the bank could cost thousands in interest costs in comparison to the low rates offered by Chrysler Financial when buying new in Canada
4. LEASE PAYMENTS IN CANADA ARE COMPETITIVE OR LOWER THAN THOSE IN THE U.S. Incentives play an integral role in determining the price / payment at the transaction level
Remember 90% of Canadians lease or finance their new vehicle
Canadian lease positions compare very favourably to U.S. lease positions for U.S. residents
5. CANADIAN RESIDUAL VALUES ARE HIGHER ON MOST OF OUR KEY VOLUME VEHICLES6. WARRANTY COVERAGE IS BASED UPON THE COUNTRY OF ORIGIN Imported vehicles generally do not qualify for the manufacturers warranty (in either Canada or the U.S.)
Imported vehicles generally do not qualify for the Roadside Assistance
7. IMPORT DUTIES CAN ADD 6.1% TO THE PRICE Imported vehicles not manufactured in North America are subject to a 6.1% Duty
8. VEHICLE CERTIFICATION MAY REQUIRE SIGNIFICANT INSPECTION & REPAIR COSTS Canadian and U.S. safety standards arent completely harmonized
Unique Canadian standards include 8 km/h bumpers, daytime running lights, etc.
9. PRICE COMPARISONS AT THE MSRP LEVEL BETWEEN CANADA & THE U.S. ARE MISLEADING 90% of Canadians are concerned about their actual monthly payment finance or lease
MSRP is only a point of reference in the highly competitive Canadian market
There are considerable incentive, residual and equipment differences
A Ram 1500 ST Quad Cab 4x4 has an MSRP about $5,000 higher in Canada comparably equipped, but we are spending over $11,000 on incentives providing Canadians with a $6,000 advantage, without even factoring in the 7-points higher residual value, providing another $2,250 leasing advantage!
Unique Canadian vehicles include the Grand Caravan Canada Value Package, Grand Cherokee Laredo Diesel, Dakota SXT and considerable other product actions & package discounts tailored to our market (more features at a lower trim level)
Then add in importation costs, homologation / modification costs, loss of warranty, no trade-in tax favourability, and higher cost of borrowing from no incentives
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All very interesting - I'm sure. But just how does ANY of the information on the pitfalls of IMPORTING a vehicle from the U.S. into Canada explain why the 2008 Chrysler 300C is $9,125 more in Canada?! It is - after all -
MADE IN CANADA!! And to add insult to injury - Chrysler's sold in the U.S. [to Americans] come with a LIFETIME POWERTRAIN WARRANTY!!
Lots of 'smoke and mirrors' if you ask me.
Craig!!
