Topic: Freight & PDI costs in Canada

[hoodlum]

Today's Globe and Mail article talks a little bit about the discrepancies between these costs in Canada vs the US.  Does anyone one know how much the cost to the dealer is for these items.  Either the dealer or the manufacturer is padding their profits with this.

http://www.globeauto.com/servlet/story/RTGAM.20080221.wh-dealweekLexus-0221/GAStory/specialGlobeAuto/home

Cato: Which limits the scope of the deal. Here's one place I would push for a better deal: that $1,780 freight charge. Outrageous. This is a perfect example of freight charges in Canada which typically run to twice or even three times as much as in the U.S.

Vaughan: We're a big country with a small population, but it does not cost three times as much to ship a car in Canada. For once you make a good point, Cato.

[marineboy]

Didn't you know that Canada is north of the US and that it is alot colder in Canada. Because of this the air is colder and thus more dense. The trucks delivering the cars have to push through this denser air thus consuming much more fuel and naturally raising the cost of freight on new cars.

Thankyou for your inquiry,

Marineboy
Future president of marketing
Canadian Excuse Manufacturers Association CEMA

[Zombie]

Didn't you know that Canada is north of the US and that it is alot colder in Canada. Because of this the air is colder and thus more dense. The trucks delivering the cars have to push through this denser air thus consuming much more fuel and naturally raising the cost of freight on new cars.

Thankyou for your inquiry,

Marineboy
Future president of marketing
Canadian Excuse Manufacturers Association CEMA

Does that mean that the F & PDI is also more in Alaska?

[marineboy]

Does that mean that the F & PDI is also more in Alaska?

No, the fuel costs are offset by the use of dog sled teams...

[JBrill]

Didn't you know that Canada is north of the US and that it is alot colder in Canada. Because of this the air is colder and thus more dense. The trucks delivering the cars have to push through this denser air thus consuming much more fuel and naturally raising the cost of freight on new cars.

Thankyou for your inquiry,

Marineboy
Future president of marketing
Canadian Excuse Manufacturers Association CEMA

Interested to hear what your spoof answer would be as an industry shill trying to justify cars produced in Oakville and sold in Oakville having higher Freight/PDI costs than cars produced in Oakville and sold in Houston? 

[marineboy]

Interested to hear what your spoof answer would be as an industry shill trying to justify cars produced in Oakville and sold in Oakville having higher Freight/PDI costs than cars produced in Oakville and sold in Houston?   

Simple physics Brill. As an experiment get a world globe. Now put a marble on Oakville and let it go. See how it naturally falls toward Florida. Now combine this with the natural rotation of the earth and we see the marble now heads directly to.....HOUSTON!
Now hold the marble in place on Oakville notice how it is taking energy to keep the marble in place.
Obviously we can conclude from this that it takes less energy to deliver cars to the southern US than it does to keep them in Canada.

[Allen]

 

[hoodlum]

Here's another example of how the Freight and PDI are used to hide profits.

http://wheels.ca/reviews/article/191785

The XF lines up directly against Audi A6, BMW 5 Series, Infiniti M45, Lexus GS and Mercedes-Benz E-Class. It offers a true alternative to all of those, being very competitive in performance and features, ahead of probably all of them in style, and as noted, something new.

Prices range from $59,000 for the base car, $65,000 for the Premium Luxury edition, and $77,000 for the Supercharged model.

Sounds not bad, until you learn Americans pay $9,025 less for each of the base models, and $14,025 less for the supercharged car. And, destination and delivery charges are included in U.S. prices – we pay $1,195.

Until they get these prices in line with currency rates, Buffalo Jaguar dealers better stock up, and learn to end every sentence with "Eh?''

[robarakira]

Something is unjust when freight/pdi for a German 911 Turbo costs three times less than for my Canadian built Civic.

[dr_spock]

I didn't have to pay freight and PDI on my used Civic. 

[sailor723]

I've always been annoyed at the whole "freight and PDI thing. I can't think of another industry where they want you to buy a product at a "retail price" and then pay extra to help cover their basic overhead costs. You don't pay extra at Future Shop to cover the cost of shipping the TV from Japan. My local menswear store doesn't charge me extra for the staff to unpack a suit,steam the wrinkles out and hang it up. Why should I pay the costs involved for a car store to get their inventory in the showroom in saleable condition?

And don't get me started on "admin fees"...

Whenever I've bought a car I always tell the salesperson up front that I only talk prices that are "out the door"..plus license and sales tax....no admin fees,no glass etching,no fabricguard etc etc

[Sir Osis of Liver]

The feds could require manufacturer's stickers to be the "on the road price". Problem solved.

I've put up with the PDI and licensing, but will not pay admin or any of the other myriad fees they attempt to tack on after a price has been agreed to. I'll simply walk and get something else or a used version of the same car.

The PDI is getting more than a bit ridiculous though. Might have to go back to used cars only at this rate.

[Ex-airbalancer]

I buy equipment out of the States, there is always shipping & handling charges
wait , never mind out of the States, the stuff I buy out of Canada has shipping & handling

[sailor723]

I buy equipment out of the States, there is always shipping & handling charges
wait , never mind out of the States, the stuff I buy out of Canada has shipping & handling

If you catalog or internet shop sure....but not for something sitting right in front of you at a retail "store" ....and when you think of it that's all a car dealership is....a retail store that sells automobiles to the end user.

$1500 "shipping" might be fine if Amazon.com sold cars at deep discount prices and all you had to do was order online and your new ride arrived in your driveway on a truck 3 or 4 days later.

[johngenx]

At the Subaru dealer the salesman gave me some serious BS about them having to "boot up" the electronics of the car and how much work that was.  LOL!!  How the DID YOU DRIVE IT OFF THE TRANSPORT TRUCK?

Subaru City and Rally Subaru in Edmonton don't even follow the MSRP of $1495 (outrageous!!) for PDI (should be renamed RYO for Rip-You-Off) but jacked it up to $1795.  Oh, yeah, 'cause there's a bunch of fuses that have to be installed too.

Basically, if you buy a new car today, you just paid about $800 for a ' car wash.

[Cord]

I've always been annoyed at the whole "freight and PDI thing. I can't think of another industry where they want you to buy a product at a "retail price" and then pay extra to help cover their basic overhead costs. You don't pay extra at Future Shop to cover the cost of shipping the TV from Japan. My local menswear store doesn't charge me extra for the staff to unpack a suit,steam the wrinkles out and hang it up. Why should I pay the costs involved for a car store to get their inventory in the showroom in saleable condition? Huh

The reason that freight is broken out separately is because Canada is just following the U.S. example where it is required by federal law to be listed separately on the window sticker.

[inco]

Interested to hear what your spoof answer would be as an industry shill trying to justify cars produced in Oakville and sold in Oakville having higher Freight/PDI costs than cars produced in Oakville and sold in Houston?   

Simple physics Brill. As an experiment get a world globe. Now put a marble on Oakville and let it go. See how it naturally falls toward Florida. Now combine this with the natural rotation of the earth and we see the marble now heads directly to.....HOUSTON!
Now hold the marble in place on Oakville notice how it is taking energy to keep the marble in place.
Obviously we can conclude from this that it takes less energy to deliver cars to the southern US than it does to keep them in Canada.

And once you have used up all of your marbles - can you ever get them back?     Now gravity will work against you and hence higher shipping costs! 

[2latecrew]

I've always been annoyed at the whole "freight and PDI thing. I can't think of another industry where they want you to buy a product at a "retail price" and then pay extra to help cover their basic overhead costs. You don't pay extra at Future Shop to cover the cost of shipping the TV from Japan. My local menswear store doesn't charge me extra for the staff to unpack a suit,steam the wrinkles out and hang it up. Why should I pay the costs involved for a car store to get their inventory in the showroom in saleable condition?

And don't get me started on "admin fees"...

Whenever I've bought a car I always tell the salesperson up front that I only talk prices that are "out the door"..plus license and sales tax....no admin fees,no glass etching,no fabricguard etc etc

I do agree that the fees they are showing as Freight/PDi are outrageous. However you do pay for

  Future Shop to cover the cost of shipping the TV from Japan. My local menswear store doesn't charge me extra for the staff to unpack a suit,steam the wrinkles out and hang it up.

Its just bundeled into the price of the TV. The Menswear store puts the cost for the employees.

If the freight and PDI were fair representaions of the actual costs you wouldn't be paying "exra" becuase it was broken out seperatly. There is a legit cost to ship any product and a legit ovehead cost (PDI) to every business).

the issue is that for whatever reason regulations or marketing they show it seperatley. I think they welocome the separate nature. It enables them to advertise the vehicles at thousands less the real on road cost. Its perception. Plus it enables them to build extra profit into the deal. Put freight and PDI as a seperate $1500 charge and it will be accepted. It does cost SOMETHING to ship and setup. They can show you the bill from the manufacturer (I'm not syaing O agree just that it appears more legit). If you bump the price of the car by $1500 to include it all people will try to erode it by 10-20% as they take a discount on the total price.

PDI is the biggest scam. The sob story that the sales department has to pay the service department is such a smokescreen. PDI is a way for the DEALERSHIP to profit. Its an accounting trick.

[sailor723]

. However you do pay for

  Future Shop to cover the cost of shipping the TV from Japan. My local menswear store doesn't charge me extra for the staff to unpack a suit,steam the wrinkles out and hang it up.

Its just bundeled into the price of the TV. The Menswear store puts the cost for the employees.

Yes, that's obvious. my point was that you don't see other retailers advertising one price and then adding on a bunch of extra "fees" at point of sale.

[jcon]

Yes, that's obvious. my point was that you don't see other retailers advertising one price and then adding on a bunch of extra "fees" at point of sale.

You don't shop at Futureshop!