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Thread: Canadian new car prices

  1. #1
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    Default Canadian new car prices

    Subaru WRX STI

    US MSRP - 32995 x 1.15 exchange rate = 37944

    Canada MSRP - 48995

    discuss

  2. #2
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    this was discussed quite extensively before....

    to summerize:

    Canada charge somethign like 5.6% ( probably wrong) on importing duty.

    they charge what they want because they can, nothing to do w/ exchange rate, simple supply and demand

  3. #3
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    YOu're totally right, its a market here just like anywhere else its all about s&D
    Autosignature

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    I think this is a good example where the economics "law of one price" is violated. If you can get a U.S. car up to Canada and have all the duties and inspections done for a price lower than the Canadian selling price then there is an arbitrage oportunity.

    37944 *1.07 for GST and let's say $2500 for shipping, inspections and other assorted costs runs the total cost up to about $43,100.

    Line up a buyer who wants to pay less than the Canadian price in Canada. Borrow $43,100 at 10%, order your american car, have it shipped up to Canada. Sell the car for $48 000, pay back your loan for $43,183 a week later and pocket the difference. $4817.

    That's the theory anyway.
    http://en.wikipedia.org/wiki/Arbitrage

  5. #5
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    See this thread and this thread

    The first thread gives a rough calculation on what it will cost for both the WRX and STi, as well as a rough quote from a dealer in Seattle. My calculations including the cost of the trip down, gas, duty, gst, etc has a new 06 STi landed at my door and licensed in Alberta for between $43-44,000. All things considered, the Canadian STi will cost me $9-10,000 more.

    The US warranty is covered by a reciprocal agreement that Subaru of Canada has with Subaru of America.

  6. #6
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    This website can help you find a US dealer that will sell new cars to Canadians.

    http://www.naata.org/

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