CD Article: 2008 Subaru Legacy and Outback

[2hondas1BMW]

The thing is though, the resale value of American cars in Canada isn't that great. If I was looking on Auto Trader, and I saw a car with "miles", I completely avoid it.

[random006]

"We get screwed with everything so get over it" I won't get over it!

It's my hard earned money so I will spend it wisely.  Wish more Canadians would start have some backbone and make the big huge saving purchases from the US.  We need to start showing these Canadian companies we will no longer tolerate the big pricing difference from the US and Canada.

If the savings were on a few thousand dollars yeah I would most likely buy in Canada but when the saving can work out to be over $10000 - US here I come.

There is something missing from this and all the other US / CDN price comparison threads.  I've pointed out that there are other factors at work here in another thread but was not sure as to what they were.  I made a few guesses but they didn't sound quite right or specific enough.

So, to put it bluntly, can anybody here write down exactly what are the factors unique to the Canadian market which skew the price away from a simple conversion of currencies?  Only then can we begin to have an informed and intelligent discussion on the matter.

[sailor723]

"We get screwed with everything so get over it" I won't get over it!

It's my hard earned money so I will spend it wisely.  Wish more Canadians would start have some backbone and make the big huge saving purchases from the US.  We need to start showing these Canadian companies we will no longer tolerate the big pricing difference from the US and Canada.

If the savings were on a few thousand dollars yeah I would most likely buy in Canada but when the saving can work out to be over $10000 - US here I come.

There is something missing from this and all the other US / CDN price comparison threads.  I've pointed out that there are other factors at work here in another thread but was not sure as to what they were.  I made a few guesses but they didn't sound quite right or specific enough.

So, to put it bluntly, can anybody here write down exactly what are the factors unique to the Canadian market which skew the price away from a simple conversion of currencies?  Only then can we begin to have an informed and intelligent discussion on the matter.

I have to think that if there were other reasonable factors to explain the price spread the Cdn manufacturers would be eager and active in publishing them. Instead,when faced with questions about pricing they either evade answering or give vague platitudes about how their vehicles sold here are uniquely designed for the Canadian market

[tpl]

One factor may well be the number of cars sold per dealer.  You have to have a certain density of dealers or people will not buy the cars but then we only have 33 MM people spread over a huge area.
The problem is more severe for imports than for domestics I imagine.


"It's my hard earned money so I will spend it wisely.  Wish more Canadians would start have some backbone and make the big huge saving purchases from the US.  We need to start showing these Canadian companies we will no longer tolerate the big pricing difference from the US and Canada.

If the savings were on a few thousand dollars yeah I would most likely buy in Canada but when the saving can work out to be over $10000 - US here I come.

"
I dont know what you do for a living Pickles but when your job disappears because the customers of your company all shop in the USA instead.... you wont be buying anything.  If you are in a government or quasi-government job then then it wont apply.... but my taxes and equalization payments will be paying you and I dont want to do that if you buy things in the USA.

If you really truly want the price differentials to disappear then get the feds to form a customs union with the USA with harmonized Regulations, taxes and tariffs.... I can hear Maude Barlow screaming from here! 

[random006]

One factor may well be the number of cars sold per dealer.  You have to have a certain density of dealers or people will not buy the cars but then we only have 33 MM people spread over a huge area.
The problem is more severe for imports than for domestics I imagine.

That only explains why prices might be high.  I'm after a more global explanation, one that explains why, when our dollar was hovering around $0.63 US, cars were actually cheaper in Canada when compared to the US.  If conversion and/or population size were all that mattered, the asking price for cars would have gone sky high during that time period.

[tpl]

That phenomenon could be explained by the lag in price setting and currency adjustments which would also explain why prices have not yet dropped.

Ideally one would expect prices on expensive things like cars to converge as currencies converge.

I'd like to see a mfr do as BMW do in the EU. Prices are set in Euros at the factory gate and they (theoretically) only vary because of dealer greed and local taxes.  If BMW USA got rid of BMW Canada and did the same it would be interesting to see what happened.   I use them as an example because they are one of the few independent mfrs left who do not answer to another .

[random006]

That phenomenon could be explained by the lag in price setting and currency adjustments which would also explain why prices have not yet dropped.

Ideally one would expect prices on expensive things like cars to converge as currencies converge.

I'd like to see a mfr do as BMW do in the EU. Prices are set in Euros at the factory gate and they (theoretically) only vary because of dealer greed and local taxes.  If BMW USA got rid of BMW Canada and did the same it would be interesting to see what happened.   I use them as an example because they are one of the few independent mfrs left who do not answer to another .

Again, that doesn't work.  Prices in Canada were out of whack with US prices for far longer than simple lag times in clearing inventory or currency adjustments.  Can any insider here point us to government economic policies regarding car prices?  What about UAW/CAW wheeling and dealing?  Did the unions have any say in how deals were worked?  Was it simply political expediency at a time of currency crisis?

Perhaps it is moot for the purposes of this thread, though.  The specific thread here is for Subaru Outback / Legacy.  I think most of us agree that Subaru of Canada is indeed marching to the sound of a different drummer when it comes to prices.

[turbodiesel]

overall a nice car, but Subaru Canada give us WRONG TAILLIGHTS...



Now we gotta wait for chances in eBay or Yahoo! Japan...

[ktm525]

Why does Subaru insist on putting hood scoops on the Legacy? It cheapens a nice looking wagon. We have a hood scoop but stuck you with a 4 speed auto.

[Zombie]

Why does Subaru insist on putting hood scoops on the Legacy? It cheapens a nice looking wagon. We have a hood scoop but stuck you with a 4 speed auto.

Ummm the hood scoop is functional and is for the inter cooler under the hood. Since Subaru uses a boxer engine that sits low in the engine bay the inter cooler fits nicely under the hood. Only the turbo's have the hood scoop so if you don't like it get the NA 4H or 6H (available next year in Canada).

[ktm525]

Why does Subaru insist on putting hood scoops on the Legacy? It cheapens a nice looking wagon. We have a hood scoop but stuck you with a 4 speed auto.

Ummm the hood scoop is functional and is for the inter cooler under the hood. Since Subaru uses a boxer engine that sits low in the engine bay the inter cooler fits nicely under the hood. Only the turbo's have the hood scoop so if you don't like it get the NA 4H or 6H (available next year in Canada).

It still looks juvenile and has no place on a wagon approaching $40k.  I am sure Subaru could redesign a a hidden scoop drawing air from the grill or lower air dam. My Volvo has a fairly low hood (granted not as low as a Subie) and manages a turbo and twin intercooler. My Passat before that was the same. I am sure it can be done. When I was shopping wagons the scoop made me cross the Legacy off the list. Maybe if I was eighteen...

[mmret]

I think part of it is just because of the engine design, making it tricky to put it anywhere else.

But I agree with you it looks really silly.

To their credit at least the GT comes with a 5sp auto.