For cars many manufatcurers simply kept prices the same but threw up atrifical abrriers to discourage cross border sales. From denying warranty, to 1000 K recall letters to simply punishing US dealers for selling to canadians.
Canadian v. US vehicle pricing is protected and will remain protected because of the over whelming demand for financing and leasing. It's just that simple.
I'm not sure I fully belive that.
1. Many companies have abandoned leasing almost entirely.
2. If financing was such a powerful barrier why did so many companies feel the need to do things like threaten US dealers for selling to Canada, making outrageous requirements (BMW and their 1K recall letter and instrument cluster changes) or denial of warranty.
1. Many companies have abandoned leasing almost entirely.The domestics halted leasing because they ran short on $$$, but the Germans, Nissan, and in particular Toyota, never pulled back on leasing.
2. If financing was such a powerful barrier why did so many companies feel the need to do things like threaten US dealers for selling to Canada, making outrageous requirements (BMW and their 1K recall letter and instrument cluster changes) or denial of warranty.In BMW's case, if they allowed late model used American Bimmers into Canada unrestricted their certified used program would be toast despite their low rates.
New vehicle sales are totally dependent on financing. In fact, low finance/lease rates trumps brand preference in many cases for the typical buyer who is dumbfounded by the selection.
IMO, one can sell more new vehicles if the price is inflated, but the finance rate is low verse a solid price, but unattractive rates.