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Canada/U.S. vehicle price differences: why Canadia


Trainman
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Good article from Canadian Driver on Cdn vs US pricing as of June 30, 2006: Canada/U.S. vehicle price differences: why Canadians pay more

 

Some snipits:

 

"Using an average of U.S. dollar exchange rates from January to June 2006, we have determined that the typical vehicle is $5,842 (17 percent) more expensive in Canada than in the United States."

 

 

"Compact and Intermediate SUVs

 

We normally do not group these vehicle segments together, but it seemed apropos for the purposes of this comparison. Compact SUVs, unlike the majority of "Entry Level" vehicles with which they are usually grouped, have an average Canada-U.S. price differential of 11 percent. The figure increases to 16 percent in the Intermediate SUV market. The Ford Escape Limited, a mainstay in the Compact SUV segment, carries a 21 percent Canadian market price differential.

 

Compact and Intermediate SUVs carried average price premiums of $2,976 and $6,261 in Canada. Both dollar values are greater than those attached to any other "needs-driven" vehicle segment."

 

 

"One issue that became apparent this year was that import nameplate automakers have adopted a radically different pricing structure compared to their GM/Ford/DaimlerChrysler-branded competitors. In past years, the vehicle pricing strategies employed by all manufacturers resulted in nearly-equal price differentials relative to each company's U.S. pricing matrix, but there has been a major swing towards import-nameplate profitability in 2006. The numbers speak volumes:

 

* GM/Ford/DaimlerChrysler passenger cars average $4,332 over American MSRPs, whereas import nameplate cars average $7,939 over U.S. pricing.

* GM/Ford/DaimlerChrysler light trucks average $3,639 over American pricing, while import-nameplate trucks average an extra $6,432."

 

 

"The flip side of this equation is that a greater amount of negotiating headroom exists on any given vehicle, so hardnosed consumers may be able to extract an extra bit of value from their vehicle purchases."

 

 

At the end of the article is a good discusion of arbitrage, namely, will Canadian consumers start crossing the border to buy vehicles?

 

And you Americans thought your cars/trucks were expensive? :P

Edited by Trainman
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So, what...your Pathfinders cost $45,000?

The base 06 4x4 Pathy in Canada costs $37,698 (CDN$).

 

In the US, it is $28,005 (US$) or $31,133 CDN at today's rate.

 

So the difference in price is $6,565 CDN or 17.4%.

 

The above is based on MSRP from the Nissan Canada and USA web sites for base 4x4 (no options). It does not take into consideration extra features one may have over the other.

 

It sucks to be us.

 

:D

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Ok, I'm too lazy to read it now, but did they state WHY ?? Tarrifs/import duties ?

 

:shrug:

 

B

The US dollar has dropped against other currencies.

 

It was not that long ago the CDN$ was trading at around $0.61, now it is $0.8995.

 

At .61, it was cheaper for people in the states to come up here any buy stuff, now it is reversed.

 

But the auto manufactures have not adjusted our prices to reflect the weaker US dollar.

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Are you serious?  read the bloody article you may learn something

 

:rolleyes: Yes, when I have the time and focus. Thanks though...

 

But the auto manufactures have not adjusted our prices to reflect the weaker US dollar.

 

Ahh, the answer in one sentence, thanks !! They screw you pretty bad like that. Your government allows it ?? :o

I'd recommend paying in US dollars for the vehicle... ;)

 

B

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