Topic: It's the Canadian dealerships threatening the US/Can.border dealers

[carburator]

Dont blame the US on not wanting to sell the cheaper cars to Canadians. It's the Canadian dealerships that are threatening all those US border dealers who would have sold to us except for the threats.

[jcon]

Dont blame the US on not wanting to sell the cheaper cars to Canadians. It's the Canadian dealerships that are threatening all those US border dealers who would have sold to us except for the threats.

Who blamed the US? Obviously it was the Canadian dealers!

[2latecrew]

Dont blame the US on not wanting to sell the cheaper cars to Canadians. It's the Canadian dealerships that are threatening all those US border dealers who would have sold to us except for the threats.

Its not Canada or US DEALERS its the manufacturers.

Canadian dealer complaints to manufacturer "I'm losing sales because the same car is 10K less in the US. They are selling it for less than my COST from XXXXXCanada"

Manufacturer can :Lower price to Canadian dealers allowing them to compete and regain the sales, they can put barriers in place to keep Canadians from wanting to buy cars in US (no warranty) or they can punish US dealers for selling to Canada to prevent lost sales for Canadian dealers.

Anyone think Canadian dealers would want option 1? Cheaper prices= more sales!

The manufacturers are the one who are making the choice not the dealers. they are to blame.

[Cord]

Dont blame the US on not wanting to sell the cheaper cars to Canadians. It's the Canadian dealerships that are threatening all those US border dealers who would have sold to us except for the threats.

Right. So what exactly would they threaten them with?

[The Mighty Duck]

They might throw snowballs at them... 

[jcon]

I like to blame the Liberal media... possibly SARS.

[carburator]

Dont blame the US on not wanting to sell the cheaper cars to Canadians. It's the Canadian dealerships that are threatening all those US border dealers who would have sold to us except for the threats.

Right. So what exactly would they threaten them with?

You've already heard the threats so I don't have to repeat...Warranty will not be honoured over here at Canadian dealerships, dealership might be forced to close, dealership will be black listed. Threats can be anything that puts fear in the others.

One thing is for sure, we sure have been ripped off into thinking that dealerships only make a few hundred bucks off a sale. C'mon..sales guy are just working for commision. .....there is absolutely negligible overhead (couple of computers and desks in a big warehouse. )

[jcon]

You've already heard the threats so I don't have to repeat...Warranty will not be honoured over here at Canadian dealerships, dealership might be forced to close, dealership will be black listed. Threats can be anything that puts fear in the others.

One thing is for sure, we sure have been ripped off into thinking that dealerships only make a few hundred bucks off a sale. C'mon..sales guy are just working for commision. .....there is absolutely negligible overhead (couple of computers and desks in a big warehouse. )

Dealerships are making the same amount of money off these cars as they did three years ago! The manufacturers are making more in Canada.

[ErikRP]

Dont blame the US on not wanting to sell the cheaper cars to Canadians. It's the Canadian dealerships that are threatening all those US border dealers who would have sold to us except for the threats.

Right. So what exactly would they threaten them with?

You've already heard the threats so I don't have to repeat...Warranty will not be honoured over here at Canadian dealerships, dealership might be forced to close, dealership will be black listed. Threats can be anything that puts fear in the others.

One thing is for sure, we sure have been ripped off into thinking that dealerships only make a few hundred bucks off a sale. C'mon..sales guy are just working for commision. .....there is absolutely negligible overhead (couple of computers and desks in a big warehouse. )

I don't think it's the dealers who say whether a warranty will or will not be honoured north of the border - it's the manufacturer like 2latecrew says. 

It's like Bombardier and their machines - they have told their U.S. dealers in no uncertain terms that they can't sell to Canadians.  They went so far as to say they wouldn't honour the warranty if the product was bought in the U.S. by ANYONE and sold to a Canadian.  How's that for being heavy-handed?  So no more getting a friend, middleman, etc. to buy for you, unless you want to do all the repairs yourself.

[mdxtasy]

One thing is for sure, we sure have been ripped off into thinking that dealerships only make a few hundred bucks off a sale. C'mon..sales guy are just working for commision. .....there is absolutely negligible overhead (couple of computers and desks in a big warehouse. )

Have you ever run a business?  Little or no overhead in running a car dealership? 

Carrying costs
Rent
Utilities
Payroll
Taxes

[AVToller]

He's on a roll - two of the most ridiculous statements in weeks in one thread. Well done Carb! 

[jcon]

One thing is for sure, we sure have been ripped off into thinking that dealerships only make a few hundred bucks off a sale. C'mon..sales guy are just working for commision. .....there is absolutely negligible overhead (couple of computers and desks in a big warehouse. )

Have you ever run a business?  Little or no overhead in running a car dealership? 

Carrying costs
Rent
Utilities
Payroll
Taxes

That's nothing... Come on MD, if that is your real name???, you must work for Honda of Canada!

Seriously, imagine the heating costs of those big 'warehouses' (showrooms). Plus the those large pieces of real estate, the property taxes...

All that and now the roaring dollar is ripping into your sales, through no fault of your own.

[mdxtasy]

He's on a roll - two of the most ridiculous statements in weeks in one thread. Well done Carb! 

I'm starting to believe this guy really is from Talos IV. 

[mdxtasy]

That's nothing... Come on MD, if that is your real name???, you must work for Honda of Canada!

I do....I confess.  I'm the one threatening all the dealers in the States.  It's me.  I send emails out to every one of them. 

Look you bastards.  You're taking away my customers.  I need to sell my cars.  You keep continuing to sell the same car for cheap and I'll start sending a few mad cows over the border.  Now where's your beef? 

[Zombie]

I'm sure that a Canadian dealer makes ruffly the same as a US one per car. It is totally the manufactures doing. They set the MSRP and they sell to the dealers. They are to blame for all this mess and they are not in a rush to fix it either. They want to ride this cost difference for as long as they can. Some manufactures might offer short turn incentives but nothing permanent.
They don't want to reduce the cost of used cars because this will effect there leased vehicles that will be returned at lease end.
Not that buying a car is ever a good investment but image if your new 2007 car that you just bough lost $10000-20000 in value over night. That would be a cause for concern if I were planning on buying a new car in Canada any time soon.

"But what do i know I'm just a stupid cave man??"

[mdxtasy]

"But what do i know I'm just a stupid cave man??"

Are you from Talos IV too?

[Zombie]

"But what do i know I'm just a stupid cave man??"

Are you from Talos IV too?

No from SNL.
Are you from Talos IV? I have strick oders from The Fedaration to not talk to Talosians, they are shifty bastards.

[carburator]

One thing is for sure, we sure have been ripped off into thinking that dealerships only make a few hundred bucks off a sale. C'mon..sales guy are just working for commision. .....there is absolutely negligible overhead (couple of computers and desks in a big warehouse. )

Have you ever run a business?  Little or no overhead in running a car dealership? 

Carrying costs
Rent
Utilities
Payroll
Taxes

Rent is cheap. Utilities are cheap, there is no payroll...all those sales people work on commission. Oh, since profit is so "low", taxes are minimal. Rent and utilities are written off. Carrying costs??? What carrying costs. A dealership is just a big box with a few desks in it and thats it.

Dealers then have nerve to charge Freight/PDI/ of $800 one car! (Shouldn't that be for the entire tractor trailer load?) Oh and how about $300 for security glass and another $200 for administration??? We all know that part is bull right? Of course, they will wave all that if you are about to walk out.

We've heard time and time again that consumers should be careful with paying for all those little hidden "extras" because they are a rip off but that when it comes to the price of the car, well then the dealers are being really honest and truthful?

[ErikRP]

Rent is cheap. Utilities are cheap, there is no payroll...all those sales people work on commission. Oh, since profit is so "low", taxes are minimal. Rent and utilities are written off. Carrying costs??? What carrying costs. A dealership is just a big box with a few desks in it and thats it.

Dealers then have nerve to charge Freight/PDI/ of $800 one car! (Shouldn't that be for the entire tractor trailer load?) Oh and how about $300 for security glass and another $200 for administration??? We all know that part is bull right? Of course, they will wave all that if you are about to walk out.

No offense, but how long have you been able to talk out of your ass like that?

Utilities are cheap?  Maybe on Talos IV, but here in Canada we have what is known as weather.  I would hate to see the heating costs for my local dealerships over the average Winnipeg winter.  Not to mention cooling costs for the average Winnipeg summer.  Huge "big boxes" as you call them, are hardly energy-efficient.  Oh, and all that glass to make the cars look attractive isn't exactly the best insulation.  Not to mention the large doors used to bring the cars in and out.

That's just utilities.  I don't know, but I'd guess that not a lot of dealerships are able to write off any of their property taxes - which on medium to large dealerships must be enormous.

Staffing, overhead, etc., etc.  I'm not saying they're crying poverty, but I don't think it's quite as simple as renting a barn out in Green Acres and getting Mr. Haney to string up a phone line.

[jcon]

One thing is for sure, we sure have been ripped off into thinking that dealerships only make a few hundred bucks off a sale. C'mon..sales guy are just working for commision. .....there is absolutely negligible overhead (couple of computers and desks in a big warehouse. )

Have you ever run a business?  Little or no overhead in running a car dealership? 

Carrying costs
Rent
Utilities
Payroll
Taxes

Rent is cheap. Utilities are cheap, there is no payroll...all those sales people work on commission. Oh, since profit is so "low", taxes are minimal. Rent and utilities are written off. Carrying costs??? What carrying costs. A dealership is just a big box with a few desks in it and thats it.

Dealers then have nerve to charge Freight/PDI/ of $800 one car! (Shouldn't that be for the entire tractor trailer load?) Oh and how about $300 for security glass and another $200 for administration??? We all know that part is bull right? Of course, they will wave all that if you are about to walk out.

Rent is cheap? Please let me know how much 20,000 sq/ft of 'warehouse' space goes for.
Yes there is payroll. You need to pay your staff, both sales staff and administration.
Taxes are minimal? You do understand that not only would they pay property taxes but also tax upon their income as well, right?
Carrying costs? You obviously don't know what carrying costs are. Their is a significant amount of inventory that these dealers carry, including new and used vehicles.
Utilities are cheap? Not likely.

I think when you begin to pay corporate taxes, pay rent (or mortgage) and pay utilities bills, you'll be better qualified to pass fiscal judgment on these companies.