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116 Posts
Discussion Starter · #1 ·
interesting, no?

Loonie's rise fails to cut car sticker price:

A typical new vehicle now costs 17% more in Canada than in the United
States because automakers have not changed their prices to reflect a
stronger loonie, a new study concludes.

"It appears that, to date, automakers have not adjusted their
[suggested retail prices] to reflect our dollar's new-found strength,"
DesRosiers Automotive Consultants says. "Canadian vehicle buyers have
not reaped the benefits resultant from a strong currency."

The 17% difference represents $5,842 for a typical vehicle, says DesRosiers.

"Vehicle prices in the U.S. haven't changed. Vehicle prices in Canada
haven't changed. But the exchange rate has moved ... up to US90 cents.
And so the U.S. pricing, when converted to Canadian dollars, creates
this differential," said Dennis DesRosiers, the consultancy's

Few people are more aware of the price differential than Subaru
Impreza WRX owners, who are paying about 20% more for their
performance sedans in Canada than across the border.

Canadians hungry for the highest-end Impreza model, the STi, have
begun shopping for them in the United States, even if they have to
jump through regulatory hoops and pay import fees, said Robin Emard,
president of the Ottawa Subaru Club, a group of enthusiasts.

"I've definitely seen a trend, from our club to people in Toronto to
people in Vancouver and Calgary and all across Canada that are
importing cars constantly now," Mr. Emard said. "It's much more

Price differentials ranged from 6.3% for compact cars to 18.4% for
luxury sport cars, the consultancy determined, with higher-volume
vehicles being more evenly priced. Contrary to findings in previous
years, only five 2006 models in its study were more affordable in
Canada: the Pontiac Montana SV6, the Toyota Corolla, Hyundai's Elantra
and Accent models, and the Chrysler PT Cruiser convertible.

On the flip side, the Chevrolet Corvette and Lexus LS430 were among
the cars with the highest price differential between the two
countries. Both cost 25% more in Canada, DesRosiers found. The study
measured base and fully loaded models to get a more accurate picture.

The loonie has jumped 5% so far this year against the U.S. dollar
following dramatic gains in the past three years. Statistics Canada
said in its 2005 review that every Canadian household has saved the
equivalent of $294 since the loonie began to rise on durable and
semi-durable goods such as electronics. But there is little evidence
new-car buyers have enjoyed the same savings.

Some of the price discrepancy is already being resolved as Canadian
consumers negotiate better deals, said Mr. DesRosiers.

"The markets are working very well on this," he said.

Mr. DesRosiers said it is unlikely individual customers will turn to
the United States in high numbers because it's simply too complex to
bother and because new-vehicle dealers are often bound by franchise
agreements that prohibit cross-border selling.

He said it is far more probable an active arbitrage market in used
vehicles may be taking place as dealers and wholesalers shop at U.S.
auctions to bring late-model vehicles into the Canadian market at
cut-rate prices.

That's exactly what happened in the early 1990s, when free trade
opened the door to importing larger and luxury vehicles from the U.S.
automakers adjusted their pricing over a year or two and the price
differential disappeared, Mr. DesRosiers said.


Rising buck must mean lower prices on imports, right? Study says no

Price in U.S., (in Canadian dollars) for Subaru Impreza WRX sedan: $28,524

Price in Canada for the same car: $35,495

Based on a listed price of US$24,995 and converted to Canadian dollars
using an average exchange rate from January to June.

487 Posts
This is the same almost everywhere in Canada..

Almost all items are priced as if it was 1US=1.50 Canadian.. Go to a Toronto book store and they haven't updated *any* of their prices.. You start paying 45$ US for a book you can buy in US for 30$.

116 Posts
Discussion Starter · #4 ·
ya, it sucks.

im from niagara falls, originally, and as a kid we used to get everything in the states.....groceries, gas, beer, toys, etc.

actually the tv i currently have in my apt was bought from ames (i think) about 15years ago. go sanyo.

if i had the desire right now, id get a new car from the states...its makes cars i cant afford here so much more affordable...or the cheap cars cheaper.

3,732 Posts
Ya, I've been thinking that too .. Now I have some numbers to back it up! I think not only the cars are afcted this way but the car being a big amount of $$$$, it is hard to hide the consequences! The crazy thing is that in Canada, we might end up bying a car in the USA that is actually a Japanese/europeen car ... This is sooo crazy!!

280 Posts
I guess I'm not suprised by this - anyone who thinks the car companies aren't going to take every chance they have to pad profits is crazy. Many (most?) car companies have been losing money for years, and once you add in the rising fuel prices cutting into people's disposable income, they are selling fewer new cars now. They may make excuses about the cars being imported before the exchange rate moved to the point it's at now, etc, but they are just trying to help the bottom line by not reacting.

487 Posts
What is canadian/ontario law for buying out of state/country cars?

In NY state, if you say buy a car in a state with 0% sales tax and bring it back to NY, when you register you have to pay the NY sales tax..

751 Posts
^CA does the same. Only way to get around it is to register the car somewhere else like Nev or Arizona.
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