Canadian pricing

[nick1978]

I see that the Buick Allure is 20% more than the Lacrosse in the US. Why?
IT was because of this big disparity that I did not lease a 2008 Mailbu and now that I am looking at a new lease will not consider a Buick because I refuse to buy from a company that discriminates so badly against Canadians.

[civilzues]

great first post and yes, GM dosen't like Canada

[ne_one]

If you're considering a lease you may want to reflect on that if you're in Canada.

[fp115]

Originally Posted by nick1978

I see that the Buick Allure is 20% more than the Lacrosse in the US. Why?
IT was because of this big disparity that I did not lease a 2008 Mailbu and now that I am looking at a new lease will not consider a Buick because I refuse to buy from a company that discriminates so badly against Canadians.

Look at the exchange rates and the competition. It is rather stupid to price something like the US when the CDN is worth 92 cents of a USD.

[Smaart Aas Saabr]

Originally Posted by fp115

Look at the exchange rates and the competition. It is rather stupid to price something like the US when the CDN is worth 92 cents of a USD.

Yeah but if you are charging 20% more CAD than USD when it is 92 cents that is a rip off

Go to America slip the dealer a couple bills go home

[zete]

Originally Posted by Smaart Aas Saabr

Yeah but if you are charging 20% more CAD than USD when it is 92 cents that is a rip off

Go to America slip the dealer a couple bills go home

The real question comes down to currency fluctuation. Here's an interesting chart from the Bank of Canada.

• July 2009 1.0775
• June 2009 1.1630
• May 2009 1.0917
• April 2009 1.1930
• March 2009 1.2613
• February 2009 1.2723
• January 2009 1.2265
• December 2008 1.2180
• November 2008 1.2370
• October 2008 1.2045
• September 2008 1.0642
• August 2008 1.0620
• July 2008 1.0240

If you average those out you'll get approximately $1.16. And if you look at those values you can see that a few short months ago the dollar was trading at $1.27! If that happens again, the Lacrosse/Allure will be cheaper here.

Now, since GM has to price their vehicles in advance how are they going to figure out what the exchange rate is? They're not psychic. Thus, they go with averages. Plus, cars always cost a bit more here. Add in the average of the rates for the past year and a bit extra for the usual and you see that they're not really trying to rip anyone off.

Plus, GM usually adds in options for free in Canada that aren't available in the US. For example, on Cadillacs all regular service was free. Buicks had a 4 year warranty up here before they had that in the States. Often times options in the States are standard up here. Etc.

It's easy to just compare the prices, but you need to look a bit deeper and comprehend what's going on. It's not as if the dollar has been at 92 cents US for the full year, it's not been as the above data shows.

[Rex Raider]

Canada sells 10% of the amount of cars that the US does. In the case of supply and demand, Canada is a smaller player on the market. If you are a volume purchaser, you get better prices. In the car world Canada is not a volume purchaser. There's more cars in California than in all of Canada.

On top of that, cars are not a commodity. Do you really want your dealer changing the prices daily, based on the US/Canadian dollar? Along that same line, cars aren't sold on the day they are built.

I can't say for sure about GM, but at Toyota, cars destined for Canada are built to different specifications, with stronger batteries, thicker weatherstripping and more...
as well, Canadian packages are different from US ones in terms of equipment. For example you need to get an "S" Corolla in the US to get power windows. Here we have them available on the base model. In the US, there's a CAMRY CE. We start at LE. We don't offer the 4runner, sequoia, highlander or (until last year) RAV4 in a 2-wheel driver version. All our SUVs were AWD.

If I remember correctly, GM has it in the dealer agreement that you can not sell to US customer if in Canada, and vice-versa.

Most financing in the US isn't available to Canadian customers. So if you do buy in the US from Canada, don't expect 0% financing or other offers. You will need to pay cash. You'll end up with a "standard" car loan from your bank, which will usually be at least 6%, maybe more.
You also still have to pay tax when you import the vehicle. (13% in Ontario).
You may have to pay brokerage fees ($300)
If the car is not part of free trade (mostly imports), you will pay an additional 6.1% import tax.

As well, the vehicle has to be allowed into Canada (many cars are not, due to bumper regulations, etc...)
And then your car will need to meet Canadian standards (Daytime Running Lights, Engine Immobilizer), which will cost you extra money.
As well, even though the car is brand new, it will need a safety inspection and other forms filled out (only available at Canadian tire, who I totally would not trust with my brand new car).

And then you have to deal with warranty work. Your car would come with a US warranty. Some dealers/brands honour cross border. Others do not. And if they do, there's often a delay in paperwork for authorizations, etc...

And do you really want to drive a Buick Masturbator (Lacrosse), when you could drive a more pleasant sounding Buick Allure?

[nick1978]

Sorry Zete your argument was shot down by GM Canada. They said that prices are not based on the value of the Canadian dollar but only on local market which means screw Canadians. Also the Cdn dollar has been close to the US dollar for over a year and other companies do not have the 20% surcharge that GM does. For both the new model 2008 Malibu and the 2010 Lacrosse you cannot say it was based on older pricing packaging since each was a new model.
I will accept Rex Raider's arguments about sometimes Cdn models have different equipment but surely not 20% more value !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[zete]

Originally Posted by nick1978

Sorry Zete your argument was shot down by GM Canada. They said that prices are not based on the value of the Canadian dollar but only on local market which means screw Canadians. Also the Cdn dollar has been close to the US dollar for over a year and other companies do not have the 20% surcharge that GM does. For both the new model 2008 Malibu and the 2010 Lacrosse you cannot say it was based on older pricing packaging since each was a new model.
I will accept Rex Raider's arguments about sometimes Cdn models have different equipment but surely not 20% more value !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

You should also check to see what's standard here and in the US.

When I bought my 2004 CTS it has free maintenance for 4 years. That wasn't offered in the US. I'm not sure what Buick offers, but there might be little features that are free here but cost in the US.

[doh]

Prices are based on House Hold Income.

Back when the CDN $$$ was worth $.60 American it took the Average CDN house Hold 52 weeks (after tax $$$) to pay for a new car, it took the Average US House Hold 47 weeks.

GM's answer. "No CDN dealers were allowed to sell a "New" vehicle for export into the USA."

Now with the Dollar near pairity, GM's answer is things like 0% financing for Americains, cash on the hood for Canadians. Without a Social Security number, Canadians cannot finance a vehicle in the USA.

Look at the whole price that you pay. I know for Ford anyways, that most USA rebates, do not apply to Canadian Buyers. Ford has a $7000 delivery Credit on the hood of 2010, F150's plus a $3000 "Recycle your ride credit" but No special finance rates.

Things are alot more equal today. Except for the fact that bringing US vehicles into Canada is wide open. I would have lost my Franshies rights for sending a Canadian Vehicle into USA.

[sonjaab]

ALL cars sold in Canada cost MORE than a similar US model.
So its not just bad and evil GM screwing you!

There is a big thread over at Edmunds.com with posts from Canadians that
are buying in the US and bringing there cars both new and used back to Canada at quite a big $$$$ savings. Even posting details of modifications (if any), drl installation, Immobilizer addition, paperwork details, temp US state plates
so it can be driven in the US (but not Canada) etc.
The names of friendly US dealers that will help you jump thru the hoops are not posted and sent thru e-mails so the mfr. can't penalize them.........
http://townhall-talk.edmunds.com/WebX/.ef18c13/4489

I personally see this daily with folks leaving cars at my motel (along the US-Can. border at the 1000 Islands bridge crossing) for the 72 hour waiting time till the paperwork hits customs and they can bring them over. I had 3 guys last week that were coming back from a dealer auction near Boston with 2 late model Suburban 2500 4x4s and were waiting out their 72 hours and
heading back to northen Ontario. They mentioned these trucks would fetch BIG BUCKS back home !

[Aprime]

Originally Posted by nick1978

I see that the Buick Allure is 20% more than the Lacrosse in the US. Why?
IT was because of this big disparity that I did not lease a 2008 Mailbu and now that I am looking at a new lease will not consider a Buick because I refuse to buy from a company that discriminates so badly against Canadians.

You could ask the same thing about food; Subway sandwiches, for instance.

Why? Because operating costs are higher here, that's why. You wanted a welfare state this huge? Well, that's the price we pay now.

It's not always linked to the bloody dollar and the exchange rate.

[MalibuMaxxSS]

Originally Posted by sonjaab

ALL cars sold in Canada cost MORE than a similar US model.
So its not just bad and evil GM screwing you!

There is a big thread over at Edmunds.com with posts from Canadians that
are buying in the US and bringing there cars both new and used back to Canada at quite a big $$$$ savings. Even posting details of modifications (if any), drl installation, Immobilizer addition, paperwork details, temp US state plates
so it can be driven in the US (but not Canada) etc.
The names of friendly US dealers that will help you jump thru the hoops are not posted and sent thru e-mails so the mfr. can't penalize them.........
http://townhall-talk.edmunds.com/WebX/.ef18c13/4489

I personally see this daily with folks leaving cars at my motel (along the US-Can. border at the 1000 Islands bridge crossing) for the 72 hour waiting time till the paperwork hits customs and they can bring them over. I had 3 guys last week that were coming back from a dealer auction near Boston with 2 late model Suburban 2500 4x4s and were waiting out their 72 hours and
heading back to northen Ontario. They mentioned these trucks would fetch BIG BUCKS back home !

I can see it on used, but for people to do it on new IMO is just uneducated buyers...With the rates and rebates on cars in Canada right now, I would be hard pressed to find a deal that would make it worth the hurdles you have to go thru, most of these are prolly withing a thousand bucks when you look at the end cost.