U.S. vs. Canadian new car prices

[bluebell]

I'm only posting this because I am a little miffed about the price differences. With U.S. and Cdn dollars being equal now, why aren't the manufacturers adjusting their prices?? I'm looking at a new 4Runner and the difference is about $10,000.00...that is simply ridiculous for the same vehicle. I have heard that at least one carmaker (Porsche I think it was) is lowering it's Canadian prices, and I've also heard that some are sending messages to their U.S. dealers stating not to sell to Canadian customers. What gives??

[JBK23]

I guest to keep you from geting a cheaper or better price and that it is harder to sell
a car wat up north like canada which cause a lot of work and shiping to get it up there.

[stevegillings]

Well, that's the way it usually is. Exchange rates usually have little impact on local prices, even if intuitively, that makes little sense to you at the moment.
On the other hand, nobody complains when it goes the other way around, and the car makers do not increase the prices. With the $ falling, cars should be 50%+ more expensive here now compared to a couple years or so ago, but that did not happen either.
Cars will be sold at prices that a local market can support, not at prices dictated by exchange rates. The car makers are for profit companies, and that's what they'll do: get the most money they can. That's how our society works, like it or not.
Imagine car prices closely tied to exchange rates: you could potentially have huge monthly price fluctuations on cars. Heck, maybe even weekly or daily.
Another reason why this makes no sense is competition. The exchange rate will favor makers from country A today, and it sucks for those in country B. It will level over time.
Quick adjustments to exchange rates make no sense.

[stevegillings]

a car wat up north like canada which cause a lot of work and shiping to get it up there.

Well, that is definately not the reason.
Look at VW's. A Touareg costs around 60K Euros in Germany. That's around $90K. And the same car can be bought in the US for $40K. Now there you have a REAL difference! Plus they are made in Germany, and need to be shipped half way around the world to be sold in the US. So they should cost like >$90K in the US. Of course, they'd not even sell a handfull at those prices here. I bet VW (and all other European car makers) hate the weak Dollar at the moment. They are still selling here (probably at a significant loss) to just be present in the market, as times (and exchange rates) will change. They won't just stop selling because of the loss, as there is much more involved (like the cost of building up dealership networks, etc .....).

It's part of life, got to live with it ....

[deepthought]

You make good points Steve. Being a Canuck has it's trials for certain, we as a nation are among the highest taxed people in the democratic world. I'm sure this play's a major factor in this equation.

As Steve mentioned, fluctuation in the difference in currencies can not possibly be accounted for on a monthly or even yearly basis. This coupled with all of the various tariffs and taxes on vehicles brought into Canada I can't see a drop in price in the foreseeable future.

Even if we would be allowed to purchace new US vehicles south of the border and bring them back to Canada the cost of the madatory conversion to "Canadian Spec" (ie Metric Guages ,odometer, etc) coupled with the import duties and headaches that would come along with such an endevour would almost assuredly bring you very close to if not beyond the cost of the same car on a lot in Canada.

Fear not though, fellow Canadians. If being Canadian means being taxed 40% of your wages at least you can rest assured that our fine government will at least spend your money constructively with systems like the gun registry or perhaps implementing a survey on the pine needle count in the norhwest quadrent of BC

[stevegillings]

or perhaps implementing a survey on the pine needle count in the norhwest quadrent of BC

LOL! Got to love governments, no matter which country.

[Limowreck]

I could be wrong but as long as the vehicle is made in the US (tacos for example) you pay no duty. You still have to pay GST and I'm sure there also some other hidden costs, but most people would still come out ahead.

[freeze]

It's pretty screwed up. 08 Audi TT S-line is almost 20k cheaper in the states than up here!!!

[deepthought]

Originally Posted by Limowreck

I could be wrong but as long as the vehicle is made in the US (tacos for example) you pay no duty. You still have to pay GST and I'm sure there also some other hidden costs, but most people would still come out ahead.

If you're refering to the "free trade agreement" , that only applies to used vehicles 10 years or older. Duty would still apply to new vehiclesor anything newer than '98

[Limowreck]

I just plucked this from the Canada Border Services Agency website BSF5048 Importing a vehicle into Canada


Import duties and taxes

If your vehicle is eligible for importation into Canada according to both CBSA and Transport Canada requirements, you will have to pay import assessments that may include duty, excise tax and the 6% goods and services tax (GST). Provincial or territorial sales tax may apply when you license your vehicle.
If you import a vehicle from outside Canada into Nova Scotia, New Brunswick or Newfoundland and Labrador, and you paid 6% GST on your importation, you will also have to pay the 8% provincial part of the harmonized sales tax (HST) when you license your vehicle.
Generally, you do not have to pay duty on a vehicle imported for personal use that was manufactured in the United States, Canada or Mexico; however, the CBSA will assess duty on a vehicle manufactured in a country other than the United States and Mexico. Duty and taxes are assessed on your vehicle's "value for duty." This is a value based on the price you have paid or will pay for the vehicle in Canadian funds before any consideration for a trade-in.
The price paid for a vehicle includes not only the gross price, but also all other amounts such as foreign sales taxes or warranty payments collected by the vendor. Any credit you may receive for a trade-in does not reduce the price that must be declared when the vehicle is imported into Canada.
Example

Gross price of vehicle
(as obtained from the dealer's invoice)$25,000Trade-in allowance$10,000Total payment$15,000
While you may have only paid the total amount of $15,000, the gross price of the vehicle of $25,000 is the value for duty that must be declared to allow for the calculation of any applicable duties and taxes.
If your vehicle has air conditioning, you will have to pay an excise tax of CAN$100. You will have to pay additional excise taxes if your vehicle weighs more than 2,007 kilograms or 4,425 pounds.
The following example shows a breakdown of the customs duties and taxes assessed on a U.S.- manufactured automobile sold for export from the United States to a purchaser in Canada and imported in the 2005 calendar year.
Example

2005 model year automobile

purchase price
(includes state taxes)US$50,000value for duty (price converted to
Canadian currency at current
rate of exchange
($50,000.00 x 1.20*))CAN$60,000Duty at 0% 0 Excise tax on
air conditioner $100 Excise tax on
excess weight 0 over $100 $100value for tax
(value + duty + excise tax)$60,100GST ($60,100 × 6%) $3,606total cost$63,706Total duties and taxes paid to CBSA $3,706
* Example only.

[Sanosuke]

or better yet:

Visit this site -- also a government site:
Registrar of Imported Vehicles RIV: How to import a U.S made vehicle into Canada

Sanosuke!

[lator]

yes, i purchased my taco in the u.s. there was no duty involved. gst, pst, and 200 bux to register with the riv program(which included all inspections). little bit of research and a block heater, and i was ready to go. saved thousands, and will do again in the future.

[stuball]

Originally Posted by lator

yes, i purchased my taco in the u.s. there was no duty involved. gst, pst, and 200 bux to register with the riv program(which included all inspections). little bit of research and a block heater, and i was ready to go. saved thousands, and will do again in the future.

You made a smart move. I am doing the same thing and picking up my '08 Tundra in November. The nice thing about it is not only are you saving several thousand dollars, but also you are not paying the extra GST/PST on those several thousands you save! A win/win situation.

This is not the dealers screwing Canadians, it is the auto manufacturers collectively. And I think it should and will end up being the dealers screaming at the manufacturers to get Canadian prices down because of lost sales to the U.S. I leave the dealers to resolve the matter themselves. In the meantime I am going where I can find the best price.

Stuball

[deepthought]

Well, I stand corrected, seems the internet is useful for gaining info on other things besides Toyota automobiles and pics of Angelina Jolle' ,. Am I still correct in assumeing that the US vehiles would have to be converted to read in Metric (particularily the odometer)? I know this was the case when I worked for a Chrysler dealer years ago. At that time they also required a DRL to be installed as well before the car/truck could be registered.

I do however still stand by my statement that no matter how much tax our government manages to squeeze from you, they will no doubt do foolish things with it.

[lator]

yes you do need to add drl, but there is a post on this site for that , fairly easy. speedodmeter doesn't need any changes, miles and km's still printed on tacoma gauges. warranty still good as well. odometer still in miles.