Automotive

CBC investigating why Canadians pay more for Canadian made automobiles

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  • Jun 14th, 2012 2:35 pm
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[OP]
Jr. Member
Feb 15, 2012
175 posts
17 upvotes

CBC investigating why Canadians pay more for Canadian made automobiles

http://www.cbc.ca/news/canada/ottawa/st ... pping.html

[QUOTE]CBC News looked at the relative prices of 24 models made in Ontario by the five big automakers — Ford, GM, Chrysler, Honda and Toyota — and found that in 18 cases, the models cost thousands of dollars more to buy in Ontario than in the United States, including Hawaii.

Based on the manufacturer's suggested retail prices, the two-wheel drive Toyota Rav4 would cost $22,650 in Honolulu, with an additional charge for freight and pre-delivery inspection (PDI) of $810.

A resident in Woodstock, Ont., however, would pay $24,865, plus a freight and PDI charge of $1,465, for the same model, despite the Rav4 being manufactured in Woodstock.

Likewise, a resident in Alliston, Ont., where the Acura MDX is made, would pay $52,690 based on the suggested retail price, while in the U.S. the vehicle's suggested price is $43,030. (See chart at bottom of article for a full list of vehicle price comparisons.)

The Canadian prices for Canadian-made vehicles tend to be lower or on par with American prices for the more affordable vehicles like the Honda Civic or Toyota Corolla.[/QUOTE]

[QUOTE]Senator Pierrette Ringuette said she invited representatives from the Big Three automakers in the U.S. to appear before the Senate finance committee to explain the price disparities, but they declined.

"How do you justify a car made in Canada being sold for 20 to 25 per cent more in Canada than in the U.S.?" she said.[/QUOTE]

[QUOTE]Lamb, the founder of the website Cars without Borders, says U.S. dealers obey orders from the automakers to turn Canadian buyers away.

"If you're a U.S. dealer you're not going to sell a brand-new car to a Canadian and that's it, and if you do you'll lose your licence, you'll be penalized. So dealers across the states are not selling new cars to Canadians," said Lamb.[/QUOTE]
16 replies
Deal Addict
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Jun 2, 2009
2090 posts
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Toronto
Freight and PDI to Hawaii is cheaper than within Ontario!

It's cheaper in GA-DAMN HAWAII?!?!
Deal Addict
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Aug 5, 2011
2313 posts
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YF
Not just cars, even oil... Think about the Alberta oil sands... They should investigate what is cheaper in Canada than USA.
[OP]
Jr. Member
Feb 15, 2012
175 posts
17 upvotes
IMWHFMPC wrote: Not just cars, even oil... Think about the Alberta oil sands... They should investigate what is cheaper in Canada than USA.
:confused: oil is the same price in Canada and the US (WTI). The differences in gasoline prices are due to government taxes.
Deal Addict
Aug 25, 2007
1098 posts
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Bolton, ON
Please, how many years has this been an issue and they are only looking at it now?
Deal Fanatic
Aug 29, 2006
7726 posts
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The different in Luxury brands are the worst, including ones not made in Canada.
The Devil made me buy it - RFD. :twisted:
Deal Expert
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Jun 9, 2003
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cause canadian's don't mind taking it in the <fill the blank>

we accept that we are different and should pay for the difference.
Deal Addict
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Nov 18, 2007
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Valleywood
CBC, did you ask Hyundai (for example), why their Santa Fe sold in Niagara Falls, NY benefits from
  • a 10 year / 100,000 mile powertrain warranty
  • a 5 year / 60,000 mile bumper-to-bumper warranty
  • a 7 year anti-perforation warranty
  • 5 years of road assistance
yet a Santa Fe bought in Niagara Falls, ON comes with only
  • a 5 year / 100,000 km powertrain warranty
  • a 5 year / 100,000 mile bumper-to-bumper warranty
  • a 5 year anti-perforation warranty
  • 3 years of road assistance
Surprisingly, the Canadian purchaser gets an additional 2137 km on the bumper-to-bumper warranty, but the difference in the other coverages is significant.
Sr. Member
Jun 2, 2011
651 posts
65 upvotes
Consumers, government and the sellers themselves know this and it will take someone with guts to take on these big guys.

Folks, these prices didn't appear just by accident. This is a huge ANOMOLY. I'll explain why.

Take for example, the Chevrolet Impala which is made right here in Oshawa Ontario. I didn't look up prices(when writing this) but an Oshawa-built Impala should be CHEAPER than an Oshawa-built Impala sold in Texas (has to travel thousands of miles). If its expensive being retailed in Oshawa than in Texas then we know something is up.

I wonder how many more Canadian made products are more expensive here in Canada than sold in the USA. Their excuses such as bilingual, administrative costs higher in Canada, or insert some other BS excuse here etc...... will not fly here. And even if it were true, with a dollar/loonie at par, Canadian goods should be no more than 10-15% pricier than the USA. Any higher than that demands a full explanation.

And for all you free-market fanatics, well your argument that the private sector can deliver goods cheaper, well show me an example. Guess they dont have one, do they?
Newbie
Apr 18, 2011
37 posts
12 upvotes
Edmonton
fastlayne wrote: CBC, did you ask Hyundai (for example), why their Santa Fe sold in Niagara Falls, NY benefits from
  • a 10 year / 100,000 mile powertrain warranty
  • a 5 year / 60,000 mile bumper-to-bumper warranty
  • a 7 year anti-perforation warranty
  • 5 years of road assistance
yet a Santa Fe bought in Niagara Falls, ON comes with only
  • a 5 year / 100,000 km powertrain warranty
  • a 5 year / 100,000 mile bumper-to-bumper warranty
  • a 5 year anti-perforation warranty
  • 3 years of road assistance
Surprisingly, the Canadian purchaser gets an additional 2137 km on the bumper-to-bumper warranty, but the difference in the other coverages is significant.
I was coincidentally looking this up myself an hour ago and came across this Q&A article. I will quote the relevant part below:
http://m.theglobeandmail.com/globe-driv ... ice=mobile
Canadians buy Hyundais at twice the per capita rate as Americans, but get a five-year warranty instead of a 10-year warranty.

Let’s be clear on what’s going on here. Hyundai does offer a 10-year power train warranty in the United States – but it applies only to the original owner. Hyundai officials tell me that if that vehicle is sold, the second and subsequent U.S. owners have power train coverage under the 5-year/ 60,000-mile limited warranty.

Hyundai Canada spokesman Chad Heard also notes, “Laws in Canada don’t allow for this kind of warranty program, so Hyundai vehicles in Canada have a five-year/100,000-km warranty that is fully transferable.”
Deal Addict
Nov 15, 2005
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Medicine Hat and SW …
thelefteyeguy wrote: cause canadian's don't mind taking it in the <fill the blank>

we accept that we are different and should pay for the difference.
Precisely, the manufacturers price their vehicle according to what they think the Canadian market will bear. Those prices don't have to reflect anything about what American consumers are willing to pay and they don't worry about Canadians buying their vehicles in the States because they simply forbid their American dealerships from selling a new vehicle to Canadians. Know of any other commodities like that? How's that for FREE TRADE? Fascinating how vehicles manufacturers can get away with it apparently indefinitely. Our government lets the manufacturers get away with it and Canadians consumers take it in the backside because, for the most part, they are hopelessly ignorant.
Deal Expert
Feb 29, 2008
26669 posts
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Montreal
Ctrl-Z wrote: Precisely, the manufacturers price their vehicle according to what they think the Canadian market will bear. Those prices don't have to reflect anything about what American consumers are willing to pay and they don't worry about Canadians buying their vehicles in the States because they simply forbid their American dealerships from selling a new vehicle to Canadians. Know of any other commodities like that?.
Car seats for babies. Another racket.
Deal Expert
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Jun 9, 2003
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Markham, ON
mr_raider wrote: Car seats for babies. Another racket.
looking at walmart.com on child seats vs. walmart.ca....omg what a scam.

another...Canadian's care more about the safety of babies than american and therefore we accept to pay more :mad:
Jr. Member
Sep 16, 2011
120 posts
9 upvotes
TORONTO
About time but nothing will change until we are broke. We are a profit center. Plain and simple.
[OP]
Jr. Member
Feb 15, 2012
175 posts
17 upvotes
A follow up article about US dealerships being coerced not to sell to Canadians

http://www.cbc.ca/news/canada/ottawa/st ... hises.html

[QUOTE]Automakers are breaking U.S. law in order to prevent Canadians from buying cheaper cars there, according to an Ottawa trade lawyer and anti-trust expert, by ordering their American licensed dealerships not to sell new cars to Canadians.[/QUOTE]

[QUOTE]Jack Backus, who owns Backus & Sons GM in Ogdensburg, N.Y., said he received a letter five years ago from General Motors directing him to sell only to Americans.

The dealer sales and service agreement included a clause that authorized his dealership to sell "only to customers located in the United States".

A Chevrolet-Oldsmobile dealership owner in Massena, N.Y., confirmed he has received a similar letter from GM. He said the first-time breaking the rule would only lead to a slap on the wrist, but after a few sales there is a fear he would lose his business.[/QUOTE]
Deal Expert
Feb 29, 2008
26669 posts
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It's like watching a kid spill ice cream. Every one stares at it and says it's a shame, but non one can do anything about it.

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