I'm sure you are all sick of people registering accounts just to ask a quesiton, but this has been driving me insane for about a year now. I always assumed it was because car manufacturers lag when it comes to currency exchange rates, but the 2006 models coming out now are the exact same story.
I know why used cars are so much more expensive, a lack of regional supply and the fact that new cars are more expensive. But why are new cars so much more expensive? (note I am talking pre-tax figures here)
The base MSRP for the 2006 WRX STI in the US is $32,995 USD, which works out to about $38.5k Canadian. The base MSRP for the same car in Canada is $48,995, a full 27% more. I can't see the few small differences in Canadian and US street laws making up for over $10000 worth of mods, in fact I would bet the Canadian and American STIs are identical within $1000 of manufacturing cost.
This story is the same across almost all similarly priced "imports". I have no idea if it's true of "domestic" makes because I have never shopped for one.
Can anyone explain to me why cars here are so much more expensive?