Topic: CR article on US vs Canadian pricing

[sailor723]

There's an April/08 article in Consumer's Reports on the US vs CDN pricing issue. They claim their survey shows the average US car is $8,000 or 26% less than it's Canadian counterpart. They go on to say that the price difference is smaller on entry level cars but can be "10's of thousands of dollars" on luxury vehicles. Seems to me that they're about 6 months late figuring this out 

I must say the 26% number surprises me. I'd have thought the spread had narrowed more than that by now. I'm thinking that maybe they're comparing MRSP's and not taking into account all the cash purchase rebates or 0.9% lease deals etc etc?

[mmret]

Incentives exist on both sides of the border, I think MSRP comparos are fair in a way.

[The Mighty Duck]

Why do people keep talking about low interest rates likes its some kind of magic bullet?  A $20 000 car financed at 1% in Canada is still 22% more expensive than a $15 000 car financed at 10%...

Lower finance rates, even if they exist, mean very little when the MSRP you're paying that interest on is substantially higher...

[Swervin34]

Full Disclosure. I am a salesman. The interest rate is mentioned as a "magic bullet" because most people make payments on there vehicle. It may be to a line of credit or a bank or the manufacturer's finance arm. People have to do their research about the cost of a vehicle (price, taxes, duty, interest rate etc.) compared to the price (M.S.R.P minus any incentives) on any vehicles that they are comparing.

Your hypothetical of a $5000 difference between $20,000 and $15,000 seems unrealistic to me. In that price range the cost is usually pretty close between U.S and Canadian models.

Cheers
Swervin34

[Cord]

A $20 000 car financed at 1% in Canada is still 22% more expensive than a $15 000 car financed at 10%...

$20000 @ 1% x 60 months (5% tax) = $21538
$15000 @ 10% x 60 months (5% tax) = $20078

That's just over 7% more expensive, no?

[airbalancer]

A $20 000 car financed at 1% in Canada is still 22% more expensive than a $15 000 car financed at 10%...

$20000 @ 1% x 60 months (5% tax) = $21538
$15000 @ 10% x 60 months (5% tax) = $20078

That's just over 7% more expensive, no?

That like 2 coffees at Starbucks

[No H2O]

There's an April/08 article in Consumer's Reports on the US vs CDN pricing issue. They claim their survey shows the average US car is $8,000 or 26% less than it's Canadian counterpart.

But will the Canadian manufacturers/distributors care? Only when it starts to hurt their wallets will they either cut their profits or whine to the government to set up some protectionist barriers.

When I'm ready to buy again, I'll let money do the talking and the BS do the walking. In the meantime, I'll continue to order my OEM Honda parts from the US at a far far better than 26% savings. 

[Snowman]

There's an April/08 article in Consumer's Reports on the US vs CDN pricing issue. They claim their survey shows the average US car is $8,000 or 26% less than it's Canadian counterpart.

But will the Canadian manufacturers/distributors care? Only when it starts to hurt their wallets will they either cut their profits or whine to the government to set up some protectionist barriers.

When I'm ready to buy again, I'll let money do the talking and the BS do the walking. In the meantime, I'll continue to order my OEM Honda parts from the US at a far far better than 26% savings. 

 

[JohnSocal]

Consumer's Report's is pretty accurate. The powers to be in Canada that say that the price differential has narrowed considerably are simply NOT being honest. They are comparing the discounted prices in Canada vs the MSRP in the US. Well I have news for them. The same deep discounts, incentives, 0% financing, etc. etc, are being offered in the US. By the way, this also applies to other items as well as autos.

I just bought a new Honda Ridgeline in Riverside California with a $8,735 discount which included manufacturers incentives and dealer discount.

It is true that here is not a great difference on low priced entry level vehicles. The difference is probably around 10-15%. However the difference on higher end vehicles ( not necessarily luxury ) is typically 25-50%.

[The Mighty Duck]

It is true that here is not a great difference on low priced entry level vehicles. The difference is probably around 10-15%. However the difference on higher end vehicles ( not necessarily luxury ) is typically 25-50%.

Even this is a myth.  The Fit starts at $13 950 in the USA - in Canada it starts at $14 980, BUT the US base model is equivalent to the Canadian LX, which will cost you $17 380.  That's a 25% price spread on an already-inexpensive vehicle.  And the kicker is this: the US top-line Sport is $15 270, less than $300 more than our base model.  The Canadian Sport will set you back $19 580, a spread of 28%.

Automakers are using this base model that does not exist in the US as a comparison, but if you look at the same vehicle, the spread can be enormous, even in the entry-level class.

[rrocket]

Compare prices for the WRX and MazdaSPeed3.  You'll be horrified at how bad we get shafted....

[johngenx]

We found the 09 Corollas very similarly priced US vs. Canada, but man, does it take a little work thanks to differing equipment levels.  However, for Toyota, this is unusual, as their products are typically far less in the US.  Honda is bad too, but the award might go to Subaru, especially on the Legacy line.  Now, the new Forester is a better value in Canada, but at under $20K in the US, how did he get hosed so badly?

The REAL kicker?  PDI.  I see most US charges are $400-600, where we were not long ago.  Now I see $1500 is "normal" and many makes are at $2K and some above that.

Pretty soon the PDI will be the most expensive thing on the car.  Shopping for a 2012 Honda Civic:

DX model base price: $17,995
DX-G package with AC/AT/etc.: $1995
PDI: $4995.

Then Honda B.S's us that the Civic is priced close to the US price.

' salespeople tell me a massive lie about how much work it is to "make the car ready to drive."  BS!!  Anyone read about the Mazdas on the car freighter?  They all had oil/batteries/etc. because they were DRIVEN on and off the freighter.  They "undo" the driveability before they get to the dealer?

The Corolla's PDI was $1100 and I'm still feeling bent over, and it's a far cry from the $2K our local Subie dealer wants (theirs is above the MSRP PDI 'cause they're "special.")

[PMREdmonton]

Why should Canadian car dealers give us cheaper car prices?  They just set a record for best quarter of car sales in 10 years.  The fact of the matter is that not many Canadians can afford to pay cash for US purchase through a broker so the US pricing of cars is pretty irrelevant to the average Canadian consumer.  They just see that cars are cheaper now than they were last year so are happy to hand over big profits to the auto manufacturers.

My only beef with the situation is how the government of Canada provides them with so many tools to restrict the import of vehicles while at the same time campaigning for lower prices in the media.

[Zombie]

Compare prices for the WRX and MazdaSPeed3.  You'll be horrified at how bad we get shafted....

I sure was that is why I bought my WRX in the US and saved about $8500 after all was said and done.

http://www.canadiandriver.com/forum/index.php/topic,55473.msg461341.html#msg461341

Its enough to make you sick or at least really, really, really mad.

If I could I would do it again! 

[rrocket]

My only beef with the situation is how the government of Canada provides them with so many tools to restrict the import of vehicles while at the same time campaigning for lower prices in the media.

What import restrictions does Canada make?  Please inform us.  The only restriction I'm aware of, was a few select models had different bumpers.  That rule is set to go away this June.  The other was some DRL crap..but that was also shelved recently IIRC...

[mmret]

My only beef with the situation is how the government of Canada provides them with so many tools to restrict the import of vehicles while at the same time campaigning for lower prices in the media.

What import restrictions does Canada make?  Please inform us.  The only restriction I'm aware of, was a few select models had different bumpers.  That rule is set to go away this June.  The other was some DRL crap..but that was also shelved recently IIRC...

The only things I am aware of are the silly differing safety regs between Euro and NA, and the 7% duty on cars made in non-NAFTA region.

The former is bureaucracy and the latter is just trade protectionism....the more important issues for most are not really under government control: lack of cheap financing and lack of warranty if you buy down south.

[Loudpedal]

There's an April/08 article in Consumer's Reports on the US vs CDN pricing issue. They claim their survey shows the average US car is $8,000 or 26% less than it's Canadian counterpart.

But will the Canadian manufacturers/distributors care? Only when it starts to hurt their wallets will they either cut their profits or whine to the government to set up some protectionist barriers.

When I'm ready to buy again, I'll let money do the talking and the BS do the walking. In the meantime, I'll continue to order my OEM Honda parts from the US at a far far better than 26% savings. 

I hear ya man.  A bunch of Infiniti parts, that I was quoted over $1000 here at my local dealer I got for just over $600 shipped from an American Infiniti dealer.  And, no tax, no duty, no brokerage fees..., just $60 bucks in shipping.   When I think about how much money I saved, I shake my head in disbelief.   

Oh well, I'm glad to be helping the American economy...

[sailor723]

My only beef with the situation is how the government of Canada provides them with so many tools to restrict the import of vehicles while at the same time campaigning for lower prices in the media.

What import restrictions does Canada make?  Please inform us.  The only restriction I'm aware of, was a few select models had different bumpers.  That rule is set to go away this June.  The other was some DRL crap..but that was also shelved recently IIRC...

For one thing it allows the manufacturers to decide which models are admissable and which are not. It (Transport Canada) also allows manufacturers (hello MB and BMW) to not provide them with information on admissability but rather charge consumers huge fees for "admissability letters" on a case by case basis. It's like the Gov has decided to let the car companies run the show. If a car is legally sold in the US it should be admissable to Canada....period!

[The Mighty Duck]

  It's been said before, but if Canada were to adopt standards that said that any vehicle available for sale in the US or Europe could be imported to Canada, then we would have it pretty good.  We here all the time about how small the margins are on entry-level cars, but then we see the same cars selling for $4000+ less in the States?  Someone is making a killing off us!   

[inco]

Here I was all set to jump over Volvo for pricing differences after reading the review in C&D of the V70 - base price there is $33, 210. In Canada they show $41,995, but they then show a $7,000 discount making it $34,995.

And we know there has to be a slight difference in costs to meet our standards so I quite like the new pricing. Lowering the base though would be more permanent since the discount could be a temporary thing only.

Too bad we don't have an ongoing website reference chart or table of car prices that are updated monthly so we could actually monitor the spread and see what the carcos are doing - or not.