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Author Topic: Audi lowers most prices to reflect Canadian/U.S. dollar parity  (Read 3720 times)
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« on: December 03, 2007, 04:46:37 am »

http://www.canadiandriver.com/news/071203-1.htm

 Grin
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« Reply #1 on: December 03, 2007, 04:56:35 am »

Very interesting....If I'm reading the article correctly this is an actual drop in published MSRP's not just a "strong dollar" rebate program for cash buyers. Obviously they feel the dollar is going to stay up around par for the forseeable future. I wonder who will be next? Grin 

(It certainly makes the APA's recommended strategy of not buying a car right now unless you absolutely have to make sense)

Another thought just came to me...It seems strange that Audi would be the first. Their production is European and the dollar hasn't run up nearly as much against the Euro. Huh
« Last Edit: December 03, 2007, 05:11:09 am by sailor723 » Logged

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« Reply #2 on: December 03, 2007, 07:08:08 am »

It just happen that there is a new Audi dealer within a mile from home. Time to pay him a visit!  Smiley
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« Reply #3 on: December 03, 2007, 03:02:56 pm »

Looking at the G&M ad (which is quite good):

"We didn't cross the boarder to get better prices. We crossed the ocean."
Includes 'letter' from the Audi Canada Exec Vice President. Explains that the lower MSRP is unique, because the lease and finance rates are maintained and can also take advantage of any cash incentives.

Examples:

A3 2.0T
Old MSRP - $33,800
New MSRP - $32,500

A4 2.0T Cabrio
Old MSRP - $55,350
New MSRP - $52,900
With limited time cash incentive - $50,900

TT 2.0T S tronic
Old MSRP - $50,600
New MSRP - $46,900
With limited time cash incentive - $44,900 (much better)

A6 3.2
Old MSRP - $63,600
New MSRP - $59,900
With limited time cash incentive - $57,900

Q7 3.6 Premium
Old MSRP - $59,800
New MSRP - $57,900
With limited time cash incentive - $55,900 (particularly nice price point)

A8
Old MSRP - $100,000 (I liked that nice round figure)
New MSRP - $95,000
With limited time cash incentive - $93,000

Models excluded are: A4, S4, RS4, S5, R8.
« Last Edit: December 03, 2007, 03:20:57 pm by sirAQUAMAN64 » Logged

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« Reply #4 on: December 03, 2007, 03:14:56 pm »

Thanks! I wonder if there is break on financing too...

An A3 would be a nice Xmas present. Fingers crossed but not holding my breathe.
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« Reply #5 on: December 03, 2007, 03:17:54 pm »

Looking at the G&M ad (which is quite good):

"We didn't cross the boarder to get better prices. We crossed the ocean."
Includes 'letter' from the Audi Canada Exec Vice President. Explains that the lower MSRP is unique, because the lease and finance rates are maintained and can also take advantage of any cash incentives.

Examples:

A3 2.0T
Old MSRP - $33,800
New MSRP - $32,500

A4 2.0T Cabrio
Old MSRP - $55,350
New MSRP - $42,900
With limited time cash incentive - $50,900

TT 2.0T S tronic
Old MSRP - $50,600
New MSRP - $46,900
With limited time cash incentive - $44,900 (much better)

A6 3.2
Old MSRP - $63,600
New MSRP - $59,900
With limited time cash incentive - $57,900

Q7 3.6 Premium
Old MSRP - $59,800
New MSRP - $57,900
With limited time cash incentive - $55,900 (particularly nice price point)

A8
Old MSRP - $100,000 (I liked that nice round figure)
New MSRP - $95,000
With limited time cash incentive - $93,000

Models excluded are: A4, S4, RS4, S5, R8.


I take it that 42k for the Audi cabrio is a typo and supposed to be 52?
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« Reply #6 on: December 03, 2007, 03:19:29 pm »

Looking at the G&M ad (which is quite good):

"We didn't cross the boarder to get better prices. We crossed the ocean."
Includes 'letter' from the Audi Canada Exec Vice President. Explains that the lower MSRP is unique, because the lease and finance rates are maintained and can also take advantage of any cash incentives.

Examples:

Q7 3.6 Premium
Old MSRP - $59,800
New MSRP - $57,900
With limited time cash incentive - $55,900 (particularly nice price point)

Models excluded are: A4, S4, RS4, S5, R8.


Q7 Premium MRSP is 48,300 USD.....still a $9600 spread at list Sad....on the other hand they're getting closer Smiley
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« Reply #7 on: December 03, 2007, 03:20:11 pm »

An A3 would be a nice Xmas present. Fingers crossed but not holding my breathe.

Saw my first '08 A3 in Sprint Blue whizzing by on a test drive last week  Drool

Yes, sorry GD. Not that you would have run out to buy one.
« Last Edit: December 03, 2007, 03:22:02 pm by sirAQUAMAN64 » Logged

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« Reply #8 on: December 03, 2007, 05:26:27 pm »

Still a huge price gap on the A3...
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« Reply #9 on: December 03, 2007, 05:28:25 pm »

Still a huge price gap on the A3...

May be, but being Audi can't lower to less than a GTI. And the GTI is selling fairly well. They're in a pinch - fine line between prestige and mainstream image here, nevermind the brand hierarchy. Best thing they could do is add some standard equipment or lower VW's pricing a bit. Cutting the price on the 3.2L Quattro would probably help sales if they could do neither of those.
« Last Edit: December 03, 2007, 05:32:41 pm by sirAQUAMAN64 » Logged

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« Reply #10 on: December 03, 2007, 05:36:36 pm »

Still a huge price gap on the A3...

May be, but being Audi can't lower to less than a GTI. And the GTI is selling fairly well. They're in a pinch - fine line between prestige and mainstream image here, nevermind the brand hierarchy. Best thing they could do is add some standard equipment or lower VW's pricing a bit. Cutting the price on the 3.2L Quattro would probably help sales if they could do neither of those.

That's a good point. Unless they can push VW down market they really have very little room to move pricewise.
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« Reply #11 on: December 03, 2007, 05:40:49 pm »

I'm still waiting for one manufacturer to truly reflect the value of the dollar.
So far its a feeble attempt.
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« Reply #12 on: December 03, 2007, 10:12:47 pm »

Agree, I'll sit on the sidelines for now.
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« Reply #13 on: December 03, 2007, 10:22:45 pm »

I'm still waiting for one manufacturer to truly reflect the value of the dollar.
So far its a feeble attempt.

Wait at least 6-12 months after the day the CAD$ hit pairity with the US$.

Cars are not bought and built like computers, the purchasing and order time is a lot longer.
The vehicles that you see on lots right now have been prepaid up to a year ago at the exchange rate "at that time".

Dealerships buys inventory from Audi Canada.
Audi Canada buys inventory from Audi Germany.
The chain process is longer than most people think, therefore the delay in price adjustments.

On the other hand, expect to see price rises in the US in 6-12 months on import vehicles.
« Last Edit: December 03, 2007, 10:31:49 pm by JSCC » Logged

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« Reply #14 on: December 04, 2007, 06:25:56 am »

I'm still waiting for one manufacturer to truly reflect the value of the dollar.
So far its a feeble attempt.

Wait at least 6-12 months after the day the CAD$ hit pairity with the US$.

Cars are not bought and built like computers, the purchasing and order time is a lot longer.
The vehicles that you see on lots right now have been prepaid up to a year ago at the exchange rate "at that time".

Dealerships buys inventory from Audi Canada.
Audi Canada buys inventory from Audi Germany.
The chain process is longer than most people think, therefore the delay in price adjustments.

On the other hand, expect to see price rises in the US in 6-12 months on import vehicles.

While what you say about inventory has some truth to it (from the dealer side they bought higher priced inventory) it doesn't adress the fact that manufacturrs (including Audi) have been charging much higher prices for years that far outstrip the exchange rate.
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« Reply #15 on: December 04, 2007, 10:56:49 am »

(It certainly makes the APA's recommended strategy of not buying a car right now unless you absolutely have to make sense)

Or as a manufacturer you could do this...

http://www.canadiandriver.com/news/071204-5.htm
December 4, 2007

Subaru Canada to give any future price reductions to December purchasers


Mississauga, Ontario - Subaru Canada Inc. has announced its Subaru Price Commitment, providing peace of mind for consumers purchasing 2008 Subaru vehicles in December. Effective immediately, Subaru Canada will protect the transaction value on all purchases in the month of December 2007 until March 1, 2008.

In addition, Subaru is offering leasing and financing from 0.5 per cent for 24 months on approved credit, along with stackable cash credits of up to $2,000. For consumers who choose not to use the Subaru-supported lease or finance programs, a cash credit of up to $8,000 is available from Subaru dealers.

"This is our way of passing the advantage of a strong Canadian dollar along to our customers," said Katsuhiro Yokoyama, president and CEO of Subaru Canada. "In fact, we're going even further with this commitment. If we are able to offer a national program between now and March 1st which is better than the current December program, Subaru will write a cheque for the difference to anyone who purchases a Subaru in December."
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« Reply #16 on: December 04, 2007, 11:17:50 am »

Wow! That is better price protection than Future Shop/Best Buy.
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« Reply #17 on: December 04, 2007, 11:38:33 am »

Now that the Loonie is below parity again, should Canadian prices start to go back up?  Huh Undecided
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« Reply #18 on: December 04, 2007, 11:56:49 am »

Now that the Loonie is below parity again, should Canadian prices start to go back up?  Huh Undecided

Not with all that cheap "at par" inventory out there.  Grin
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« Reply #19 on: December 04, 2007, 06:57:16 pm »

It doesn't matter if the dollar is $0.98 or $1.02, the difference in car costs between the two countries is far more than just a few percentage points. An $0.85 CDN dollar would be reason for prices to staay high.

Besides, the U.S. Federal Reserve will likely drop interest rates next week that will result in another fall in the U.S. dollar.
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