Ongoing Deal Discussion

[Always] WOW ---- New and used cars from US up to 30% cheaper - Read post #1

Poll: Are Canadian cars overpriced

  • Total votes: 335. You have voted on this poll.
I have no voice, Canadian Dealers/Manufacturers are taking advantage of the Canadian consumer
 
112
33%
In most cases, new cars purchased in the US are almost always thousands cheaper
 
149
44%
I owe no one a living, competition is good. Thank you NAFTA!
 
61
18%
With the exchange rate factored in, Canadian prices are roughly the same
 
6
2%
With the exchange rate and financing, Canadian prices are cheaper - Buy Canadian!
 
7
2%

Poll ended at Dec 28th, 2006 1:46 pm

Jr. Member
Aug 11, 2004
193 posts
25 upvotes
I've done 4 Harley's in the last 6 months, specifically 2-3 year old FXSTD's (Deuces) Dealer wait one those is 4-5 months in canada, and I have been picking up bikes with under 10K miles for the $15K US range. After all is said and done I am landing the bikes with the speedo face change over and all fees for around $17000 and and fethcing $22,000 on average. Since most of these bikes are already piped and half a couple thousand worth of accessories, they are even easier sells. A Canadian Equivelant is going to sell for around the $27000 mark + GST. That being said it is very easy to do, car or bike. I am in the works of bringing up a Corvette Z06 for resale as well which should net a tidy profit of about $23000 once all is said and done. On certain hot models like the Z06 where dealer wait times are in the 9-12 month time frame, these are easy pieces to unload quick. Plus the buyer of a $100,000 car doesn't look at price as an objective. So stick to odball low run higly coveted stuff and you will make some serious cash.

I would rather have the only car with an audience of 50 buyers, than one of 2000 cars with an audience of 10000 buyers. With the current exchange rate this is a gold mine that will slowly but surely be capitalized on. It used to go the other way (Canada to US) but now, it is far more profitable to bring them to this side of the border.

In cases where the manufacturers void the warranties you just buy an aftermarket Warranty like Secure Drive. On most cars you can pick up 3 year bumper to bumper coverage in around $3000 mark, and on a vehicle where you save 6-8000 grand, you are still way ahead of the game.
Deal Addict
Oct 25, 2005
2106 posts
248 upvotes
North Vancouver
I think if you lived near States, just go there to do warranty check every 5000km, consider for the $6000 price difference, just spend a little bulks in the gas :)
Sr. Member
Feb 6, 2006
551 posts
35 upvotes
how about if you get the car for free? do you just pay $200 for the RIV?

I have abt 10 immediate-relatives in US, and when we didn't have a vehicle, it was like 5 of them wanted to give us a car.
1 of my Aunt, just donated an RV she bought 8 years ago and was used only once, then parked infornt of their house in San Diego. Their community petitioned it to be removed, so she called a foundation and less than 1 hr it was gone. The RV was nice and well kept (fully furnished), what a waste, lucky foundation. > :(
We thought it was not worth bringing cars here as high taxes or fees plaus all the hassles.
But now, I might have an extra car (need it for standby).
Thanks guys for this topic ... :cool:
Sr. Member
Sep 25, 2004
840 posts
334 upvotes
Sorry for being off-topic. He quoted simple macroeconomics, and in a simplified format:

Vehicle made in Canada --> You buy --> Workers get paid --> They spend their money in Canada --> More workers get paid --> They spend the money in Canada --> helps the economy

Vehicle made in US or Japan or anywhere else --> You buy --> Workers get paid --> They spend their money in US or Japan --> Money exits the Canadian economy, which is bad for Canada

Extend that to many other portions of the buying process... dealers, contractors, stock owners, etc, and that's why people want you to buy locally. But you are out of the money that you could have saved. Tons of other social and economic aspects, but this is just a simple view of his rationale.

Who said I'd never use economics out of class. (Oh, me.) Now back on the subject of the deal itself!!!


dzen wrote:That is a load of crap.

First off domestic does not equal made in Canada. Made in the US domestic has nothing to do with us.

I'm sure we will all only buy products made in Canada and nothing else. So why don't you start. Good luck.
[OP]
Deal Addict
User avatar
Feb 28, 2006
1347 posts
162 upvotes
Toronto, Ontario
Sorry you lost me joeags.

Many automakers' factories and "head offices" are here but a good portion of what I pay for a car goes to foreign nationals. The flag waving doesn't work when I am being gouged. If I follow your logic, I should only buy cars made in Ontario since it's only those workers who will benefit from my purchase. I'm looking at a Subaru (that's made in Indiana). The fact that I buy it here or in the US is inconsequential as the bulk of the price goes back to Japan anyway.

The pricing is set at the corporate level (by the Canadian subsidiary) who according to the Globe and Star articles, are trying to recoup lost revenue.

When I asked my local dealers about the difference, I was told:

They would hate to drop prices as those who previously purchased might be offended. It would need to come as incentives (I have yet to see any). I was also told that they bought the cars when the dollar was low.

Since I respect car dealers as much as insurance agents and politicians, if they want my hard-taxed dollars, they'll have to work for it. The local dealer is entitled to charge me FAIR market price no doubt about that but not one is entitled to my business - as I said, if they want it they'll need to work for it.

Case in point: I emailed SIX dealers in Ontario, NOT ONE bothered to reply to my request for a quote. I sent four emails to US dealers looking for the same and every one of them responded.

Now I'll get off my soapbox.
Newbie
Mar 27, 2006
90 posts
1 upvote
joeags wrote:Sorry for being off-topic. He quoted simple macroeconomics, and in a simplified format:

Vehicle made in Canada --> You buy --> Workers get paid --> They spend their money in Canada --> More workers get paid --> They spend the money in Canada --> helps the economy

Vehicle made in US or Japan or anywhere else --> You buy --> Workers get paid --> They spend their money in US or Japan --> Money exits the Canadian economy, which is bad for Canada

Extend that to many other portions of the buying process... dealers, contractors, stock owners, etc, and that's why people want you to buy locally. But you are out of the money that you could have saved. Tons of other social and economic aspects, but this is just a simple view of his rationale.

Who said I'd never use economics out of class. (Oh, me.) Now back on the subject of the deal itself!!!
Your completely missing the point here. Nothing to do with very elementary economics. It's even more simple than that. It's knowing where your product is coming from.

I repeat:

"First off domestic does not equal made in Canada. Made in the US domestic has nothing to do with us."


Simply, a 'DOMESTIC' made in U.S.A car with American workers in an American company that trades on the New York Stock Exchange is not Canadian.

If you want to support the Canadian economy go buy an "IMPORT' made in Canada car rather than a Made in the U.S.A 'Domestic'.

My comment to his original post he states buying a Honda is not supporting the economy yet Civics, Pilots, Odysseys, Acura EL , and MDX are made in Canada while Ford makes very few of their total vehicles here.

Hmm? With the extra money I'll save buying buying a Canadian made Lexus RX in the states, I could spend all the extra cash Back home to support the economy. Forget the Plasma(Japan) from BestBuy(USA). I'll go buy Gretzky clothes from The Bay! We should all have Blackberrys instead of Motorolas and Nokia too.

Thanks for the elemetary economics review though.
Newbie
Mar 27, 2006
90 posts
1 upvote
scottmcl wrote:SMALL saving on new cars

HUGE saving on used cars

end of story
Could you give us an examples. Which used cars?
Deal Addict
Aug 5, 2004
1030 posts
18 upvotes
dOOMYLEIN wrote:Ok. This is great if you buy NAFTA cars but how about the great german or japanese cars?! You still have to pay the duty tax which will kill the deal completely.
Any ideea how big are the duty taxes or where can I find info in this regard?
Most of the Japanese cars sold in the US are built in the US, so there is no issue.
Deal Expert
Oct 20, 2001
18709 posts
1229 upvotes
Sauga
ecgz88 wrote:Hi, Thanks for your awesome work. It makes me clearly for the manufacture policy.

It seems like Toyota allowed you take the warranty in Canada, Right?
I am not sure if Toyota allowed their USA dealer to sell vehicle to canadian. :)

I lived in BC, there is 20% price difference for the 2007 new Camry.
Yes, I'm sure some dealers in the US will sell to Canadians. You can read one person's experience over at http://www.siennaclub.org/forum/index.p ... topic=6465 ... read the document he attached to the first post, also.
Member
User avatar
Jun 2, 2003
211 posts
12 upvotes
Quebec
Great thread!
I've been looking to buy a Hyundai Sonata 2006 in the states for a few weeks now... but I don't know where to start looking to find the best dealer to buy from!

Do you guys know of a good Hyundai dealer near Quebec (Maine, New Hampshire (Pittsburg?), Vermont)?

On carsdirect.com you can have a Sonata LX (leather, sunroof, etc) for 18700$. That's a 10k$ difference! And I read that some people are getting even better deals than that.
Jr. Member
User avatar
May 9, 2003
116 posts
Wasn't it always true ever since that if you buy cars from the US it would be cheaper than buying cars in Canada.. duties and taxes included if any depending which car was bought I heard?

Furthermore, when shopping around for a car in the States you need to look into if that car was made to combat harsh winters we have up here or not. I think that's a concern.
Deal Addict
User avatar
Aug 27, 2004
2225 posts
72 upvotes
Paris, France
Regurge wrote:Wasn't it always true ever since that if you buy cars from the US it would be cheaper than buying cars in Canada.. duties and taxes included if any depending which car was bought I heard?

Furthermore, when shopping around for a car in the States you need to look into if that car was made to combat harsh winters we have up here or not. I think that's a concern.
I'm pretty sure Buffalo (for Ontario folks at least) has harsh winters as well.
[OP]
Deal Addict
User avatar
Feb 28, 2006
1347 posts
162 upvotes
Toronto, Ontario
Perhaps someone can enlighten us but aside from DRL and odometers/speedometers in kilometres, I doubt the Canadian market generates enough volume to warrant custom manufacturing.

From the on-line brochures I compare, I have yet to find any other differences.

If anything, I would suspect we get less of a selection in Canada: Just off the top of my head, no Mercury line and until recently no Mitsubishi.

The Subaru Outback I'm looking at comes in extra trim levels in the US that aren't available here. It even has DRLs installed as standard equipment.

As many readers pointed out, there are some Canadian manufacturers that insist on changing the American warranties (which in many cases has less coverage or none at all). Other than those few, most honour the warranties as described.

Heck, for an $8000 savings, I'll forego a warranty altogether (dealers read that?) to buy here.

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