Shop in Canada....WHY?

[Doc]

Okay, it's time for the Doc to shop for a car. Folks who know me, KNOW I need to buy a vehicle. It's about time to retire the "Fugly". So, my question to you all is....Why would anyone be retarded enough to support your local car dealership? Across the border, it's 30-40% cheaper. I can get a GMC pick up in the States for 30% less than in Canada...and the truck was MADE IN CANADA!! Now, I don't want to see Canadian businesses go "belly up" any more than the next guy. But enough, really is enough.
I've been shopping, and the US dealerships are tripping over each other for the business.
Even when the dollar was 10 points lower than the US, it was a good deal. Now, it's just stupid to shop at home.
In Canada, we've always been forced to eat the "little green apples", while just across the border, there are "big red apples"!
Thoughts?

[Starsky]

If you are buying new then one consideration is that a lot of manufacturers will not honour warrenties if you buy in the USA and then export to Canada.

If that is not a concern for you then see http://www.riv.ca for all the info on importing a vehicle into Canada. If the vehicle that you want is on the list of vehicles that qualify for import (most normal vehicles are) then the process is very easy and as you noted can save you tonnes of cash.

[WJflyer]

If you are buying new then one consideration is that a lot of manufacturers will not honour warrenties if you buy in the USA and then export to Canada.

If that is not a concern for you then see http://www.riv.ca for all the info on importing a vehicle into Canada. If the vehicle that you want is on the list of vehicles that qualify for import (most normal vehicles are) then the process is very easy and as you noted can save you tonnes of cash.

Toyota has stated that they will honour warranties, no matter where the car was bought. I am hunting for a new car myself, and I am drawn to Toyota for their price, reliability, and fuel economy, on top of their warranty program, which pretty much lays out the red carpet for you.

[xsbank]

There is no reason at all to buy Canadian right now - I won't even buy a magazine. If we would just stop buying for a while it will all even out.

How long can a dealer survive refusing to do warranty work? Moronic. Its no different than buying a car in (shudder) Quebec and then having it fixed in Vancouver (don't ask).

Course, it probably will take about a month to get over the border - they're lined up past Whistler now.

A headset I liked is $825 Canadian, $680 US. Do I look stupid?

[CD]

Lawsuit alleges automakers conspired to boost Canadian prices

26 Sep, 8:16 PM

TORONTO - Several automakers have been slapped with a $2-billion class action lawsuit that claims the industry conspired to artificially maintain car prices in Canada and inhibited cross-border vehicle shopping fuelled by a rising loonie.

The suit was filed with the Ontario Superior Court by Toronto-based law firm Juroviesky and Ricci on behalf of four Toronto residents who bought or leased cars between August 2005 and August 2007.

The plaintiffs say they forked out more money for cars in Canada than they would have for similar or identical models in the United States and are seeking $2 billion in general damages as well as $100 million in punitive damages.

Named in the lawsuit are the Canadian and U.S. divisions of General Motors (NYSE:GM), Honda, Nissan and Chrysler.

"We believe that we have uncovered a conspiracy that has been designed and choreographed by the automobile manufacturers to artificially enhance the price of cars in Canada to Canadian consumers," Henry Juroviesky, the firm's managing partner, said in a telephone interview.

Representatives of the auto dealers and some of the carmakers declined to comment on the lawsuit. However, a spokesman for GM Canada said the company prices its cars and trucks in part after observing what rival automakers do in a competitive marketplace.

As the loonie hovers around parity with the U.S. dollar, many Canadian consumers have questioned why there's such a big price difference between the two countries on many ordinary goods imported from the U.S. - everything ranging from guitars and DVD players to flat-screen TVs, cars, trucks and baby products.

In Wednesday's lawsuit, the plaintiffs allege that the automakers worked together to minimize cross-border competition and limit the number of new cars that crossed the border. As well, the lawsuit alleges that the companies breached both the Competition Act and the Consumer Protection Act in Canada.

"Cars on an absolute basis are just cheaper in the United States and one has to wonder why. When you go and try to exercise that reasonably available efficient alternative, you're stopped," Juroviesky said.

"Tinkering has been done, we allege, with the market forces that don't allow a downward adjustment to Canadian auto prices of an efficient alternative supply."

Included in the allegations are claims that the automakers agreed not to honour warranties for vehicles purchased across the border, forcing Canadian consumers who wanted a manufacturer's warranty to pay 25 to 35 per cent more on average for a vehicle in Canada.

"It would be expected under natural laws of competition that if not for the defendants' conspiracy to artificially maintain their domestic prices in the U.S. at historical levels, the prices of U.S. domestic goods would have fallen to approximate the price levels of the readily available Canadian alternative," the suit said.

None of the allegations have been proven in court and the suit has yet to be certified officially as a class action by a judge.

The suit also claims some auto sales contracts included "no-export clauses" that prevented buyers from taking their cars from the U.S. to Canada, or vice-versa.

It also alleges manufacturers penalized dealers if the cars they sold were later exported, either by threatening to delay shipment of certain models or issuing "chargebacks."

Also named in the suit are the Canadian Automobile Dealers Association, or CADA, and its Viriginia-based U.S. equivalent the National Automobile Dealers Association.

CADA spokesman Huw Williams said that as of Wednesday afternoon the association had yet to receive a copy of the suit.

"We're obviously not prepared to either comment on it or anything revolving around it," Williams said from Ottawa.

Representatives for Honda and Nissan did not return calls for comment while Chrysler declined to discuss the suit.

In the United States, a similar pricing lawsuit is being heard at a court in Maine which involves both U.S. and Canadian automakers and dealers. The suit, filed in 2003, claims that Americans were denied warranties for vehicles they bought in Canada when the U.S. dollar was well above the loonie.

It's hard to ignore the sometimes drastic price differences between Canada and the United States, which are more apparent on higher-end models.

For example, the 2007 Honda Accord Sedan starts at C$25,090 in Canada while it costs US$20,360 in the United States. The higher end Cadillac Escalade EXT starts at C$71,730 while it sells for US$55,045 south of the border.

Vehicles cited in the suit include a leased Jeep Grand Cherokee Overland, which it says under a lease had a sale price of C$58,645 while it was advertised in the U.S. at less than US$40,000. A GMC Yukon Denali was purchased by one of the plaintiffs for C$69,615 while it was priced at US$50,000 stateside.

While GM Canada spokesman Stew Low declined to comment on the specifics of the case, he said GM prices its vehicles by observing how fellow automakers are acting in Canada.

"It's an extremely competitive marketplace," he said in an interview. "We price to what we believe we need to do to be competitive in the various segments."

Low also noted that regulatory differences between Canada and the U.S. can drive up so-called logistics costs. He said daytime running lights and higher bumper standards increase the cost of vehicles, such as the bumper system on the Corvette, which he says is "totally unique" in Canada.

The class action suit materialized just as Porsche announced on Tuesday plans to chop Canadian prices on its 2008 models by an average of about eight per cent.

"We cannot ignore our customers and dealers in Canada who can look to the U.S. and recognize a substantial price difference," Peter Schwarzenbauer, president of Porsche Cars North America Inc. said in a release.

But Juroviesky said the move was "too little, too late."

"Even if they're lowering their prices by 10 to 15 per cent that's not enough and they should've thought about that two and a half or three years ago when the dollar flipped," he said.

-

TORONTO - A sample of current manufacturer suggested retail prices for automobiles in both the United States and Canada:

-Honda Accord Sedan 2008

Canada: C$25,090
U.S.: US$20,360

-Honda Odyssey 2008

Canada: C$33,300
U.S.: US$25,645

-Cadillac Escalade EXT

Canada: C$71,730
U.S.: US$55,045

-Chevy Monte Carlo

Canada: C$25,230
U.S.: US$21,700

-Nissan Maxima 3.5 SE

Canada: C$36,998
U.S.: US$28,130

[corporate joe]

Porsche announced they would be dropping their Canadian prices by about 10%.

[Inverted2]

If only I could afford a Porsche. ...

But seriously as someone said, I have completely quit buying books and magazines here in Canada. Its friggin ridiculous. We all have to send a message to retailers here that we are tired of being ripped off.


Now if we could only do something about the beer prices....

[MUSKEG]

This summer a friend flew to Houston and picked up a loaded Toyota Tundra and saved himself 11 grand over same vehicle in Can. I now we canadians are blassey about alot of things but 11 grand I think NOT.

[Mach1]

It is good to see the Canadian consumer finally waking up and taking action. It truely is the only way to change things.

[co-joe]

I heard that some US auto dealers are refusing to sell to canadians. Not sure about this but it might be best to fake a US accent when you go to buy it.

[5x5]

Here's a link to a company that facilitates the US purchase. Even if you have them ship (in my case from California to Alberta - approx $1,500) you still save a lot of money. I figure it would cost me similar to take time off and get there to drive it back anyway. They don't charge much and even though it's not that difficult to arrange yourself they provide guidance and any contacts and such you need. They've been very helpful so far and although I haven't finalized yet, it may be worth checking them out.

http://www.fleetbargains.com

[Dex]

This summer a friend flew to Houston and picked up a loaded Toyota Tundra and saved himself 11 grand over same vehicle in Can. I now we canadians are blassey about alot of things but 11 grand I think NOT.

Same thing with the Toyota Tacoma; an extreme price difference. And to add fuel to the fire the U.S. model Tacoma even has the side impact air bags option which the Canadian version does not. And still would be 10 grand cheaper than the equivalent Canadian version.

[altiplano]

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[altiplano]

Thanks for that RIV link.

The cost of the excise taxes (A/C and GVW) for $200, the $195 RIV fee, the cost of your inspection at Canadian Tire and the GST payable at the border combined is still less than what the total GST would be in my example of $37K vs $27K...

It's just like putting 10 grand in you pocket.

[mbav8r]

It's amazing and blatent disregard for the consumers intelligence, Just went on Ford.ca and Ford.com. 2008 Escape limited 35,000 in Winnipeg, 2 hr drive south to Grand Forks 25,700. Also noted that it cost more to have a moonroof installed in Can. 1100 verses 600 U.S

[2R]

Wait until the Loonie gets to 1.25 US then the fun will start

[just curious]

BMW and sundry other european companies back in the day, used to have packages that were pretty damned good.

You flew to Germany, picked up the car, and drove it around europe for 4 or 5 weeks playing tourist. Then you drove it to Bremerhaven where it went on a container ship to Canada, then you picked it up and drove it home. The savings in taxes and duties were formidable. Enough to pay for my vacation.

[LegoMan]

Canadian Dollar is now higher 1 CDN = 1.0037 USD

[RatherBeFlyingInCanada]

[bigsky]

If the pricing continues as it is I am sure there is going to be some serious bitchin' from the auto dealers and RV dealers soon.

RV's Snowmachines and ATV's are also running between 25% and 35% cheaper out of the US.
Even Bombardier products!!!!

[Doc]

BooHoo...pretty easy to get the business. Match the prices, or get to know the bankruptcy act.

[desksgo]

This is a compelling argument to stay in Canada to do your shopping.

http://www.shopUSvsCA.ca


PS. I am going away for a long while.

[bmc]

I participate in a musicians forum and it's interesting to see guys trying to sell Made in America instruments that they bought in Canada for $1300CDN (including GST and provincial taxes) two years ago, that sold in the us for USD700. They will take a bath selling it given the ability to buy a new one for far less.

This will have an interesting impact.