High Canadian Dollar = Cheaper Cars?

[Mightaswell]

While watching the news yesterday I noticed the Canadian dollar was at 83 cents US. I was surprised it was that high, I knew it was going up but i had no idea it was at 83 cents, i'm used to it being below 70. So that got me thinking, have Canadian car prices adjusted accordingly with the higher dollar?

Canadian car prices back in the day of the 65 cent dollar were actually cheaper than American car prices to account for the lower Canadian standard of living. So much lower in fact that you had to sign a a contract with some cars saying you wouln't export it to the states for profit. The new Mini being one example.

So I did a little research and found that you can get cars for tens of thousands of dollars cheaper by buying them in the states and importing them in. The difference is much larger with expensive cars, but it's there with most. Since Almost all american cars meet the fucking stupid Canadian 5mph bumper reg, importing is almost hassle free. Still can't buy a GTO or Fort GT though

Example:

Cheapest 350Z in each market:
United States MSRP: $26,500usd ($32,232.62cnd)
Canadian MSRP: $45,400cnd ($37,329.97usd)

Thats a difference of 13 thousand dollars. Well worth the hassle of importing of you ask me. lets check another Model.

BMW M3 Coupe:
United States MSRP: $47,300usd ($57,528.65cnd)
Canadian MSRP: $73,950cnd ($60,815usd!!!!!)

I checked with RIV.CA (registrar of imported vehicles) and bothe these Cars can be imported in to Canada with no modification.

The cheaper the car is the less the difference is though. The dodge SRT-4 had about 4k difference between the US and Canadian Price, not that big of a deal. Even the RSX-S was 5K cheaper down in the states.

Anyways, just wondering If I'm missing something here. Maybe Canadian cars are forced to include more things in the base price, or maybe the Automakers are capitalizing on the higher dollar, what do you think?

[tulit]

Prices are unlikely to change here. The thing is, the cars your looking at don't come from the US. Its not that the Canadian dollars all of a sudden got so much more valuable, its that the US dollar has tanked. The Canadian dollar is still about the same relative to the euro/yen. It's more likely for the prices in the US to start going up, rather than our prices going down.

[rage2]

US dealerships have started enforcing non-export waivers for new cars, much like how Canada does it for curb exports to the US when the US$ was much stronger, and cheaper for americans to buy from Canada.

Of course, the used market is crazy right now, so cheap to pick up a used car from the US!

[/////AMG]

Crap, wait... this isn't good if I want to convert CDN $'s to Sterling £'s is it?!!?

[Hollywood]

Since US cars are shit, expect to pay 14% at the border when bringing it back FYI. 7% GST, 7% duty due to being a vehicle not made in NA.

[googe]

Originally posted by Hollywood
Since US cars are shit, expect to pay 14% at the border when bringing it back FYI. 7% GST, 7% duty due to being a vehicle not made in NA.

how does that make sense? a car made in the USA that isnt made in north america?

there is no duty on north american vehicles, they fall under NAFTA, and youd have to pay GST here too (unless youre talking used)

[camero]

You pay customs for all cars, I paid customs on my 98 ss from the states. It was 7% + $250 for RIV papers. Thats about it. You will still have a handful of cash though.

[Hollywood]

Originally posted by googe


how does that make sense? a car made in the USA that isnt made in north america?

there is no duty on north american vehicles, they fall under NAFTA, and youd have to pay GST here too (unless youre talking used)

I will clarify my statement looks like you got confused.

Since US cars are shit, your stuck with importing an import which is 7% gst, 7% duty on a used vehicle.

But what I dont understand is why you are forced to pay GST on a used vehicle purchaced in the states importing into canada, since you used US goods and services not Canadian services (dealerships).

[googe]

Originally posted by Hollywood


I will clarify my statement looks like you got confused.

Since US cars are shit, your stuck with importing an import which is 7% gst, 7% duty on a used vehicle.

But what I dont understand is why you are forced to pay GST on a used vehicle purchaced in the states importing into canada, since you used US goods and services not Canadian services (dealerships).

oh, gotcha

yeah, and having to pay gst on it is crap.

[Xtrema]

Originally posted by Hollywood
But what I dont understand is why you are forced to pay GST on a used vehicle purchaced in the states importing into canada, since you used US goods and services not Canadian services (dealerships).

I think they assume that if you bought a new car in Canada, you've already paid GST/PST once already, no need to pay again. But if you buy U.S. car, you havn't pay taxes on it yet. So this is to prevent people buying used cars from US instead of Canada.

[Mightaswell]

Originally posted by Xtrema


I think they assume that if you bought a new car in Canada, you've already paid GST/PST once already, no need to pay again. But if you buy U.S. car, you havn't pay taxes on it yet. So this is to prevent people buying used cars from US instead of Canada.

it's not really there to prevent it, just there so the governemt gets a cut on everything you buy, even if it's in the states. You have to pay GST on pretty much anything you bring back to Canada or import.

[Hollywood]

Originally posted by Xtrema


I think they assume that if you bought a new car in Canada, you've already paid GST/PST once already, no need to pay again. But if you buy U.S. car, you havn't pay taxes on it yet. So this is to prevent people buying used cars from US instead of Canada.

Honestly it sounds against the law.

Truth be known it's against the law to tax off your paycheck.

http://www.cra-arc.gc.ca/newsroom/myths/menu-e.html

[max_boost]

Even after the 7% GST and 7% duty and other associated fees, you still save thousands off of a used car from the U.S! I hope the dollar is still strong enough come summer time.

[Altezza]

Originally posted by Xtrema


I think they assume that if you bought a new car in Canada, you've already paid GST/PST once already, no need to pay again. But if you buy U.S. car, you havn't pay taxes on it yet. So this is to prevent people buying used cars from US instead of Canada.

The gov't doesn't stop at collecting GST only once, LOL. On the Escalade I imported, it was originally bought in Canada with GST paid on purchase. It was exported to the USA. When we brought the vehicle back to Canada for import from the USA, we had to pay GST on it even though it was originally a Canadian car with GST paid the first time.

[/////AMG]

How does this effect the pound sterling? We get more pounds for our dollar, rather than less right?

[benyl]

No effect at all.

Our currency relative to other hasn't changed much, or has even gone down.

[Thaco]

even if the dollar lowers prices... the cost of steel right now is driving up prices like mad.

[Z_Fan]

For the record ...

In the USA there are 2 models of the 350z which are below the model considered base in Canada. Pure Z and Enthusiast are not models that are or ever were available in Canada...

Also, compounding the problem is the CANADIAN web site for Nissan shows both Performance and Touring as the same price - which is not right I believe. The Touring model should be about $2K more...

So to compare touring model to touring model...

$31800 US to $45400 CDN

Still a heathly difference after conversions...but the price you give is not fair because the Pure Z model it is not on par with the minimum car you can buy as the canadian equivalent. About $6922 CDN is the real difference par for par - a far cry from the 13K in your example...BUT still a very large discrepancy to be certain...

When I bought my Track Pack - just for example...the US Track Pack was significantly MORE money. (5000 CDN dollars MORE) - So if you bought a Track Pack right when they first came out, the problem was the OPPOSITE direction. They were CHEAPER in CANADA! And due to that, you did have to sign an agreement stating you would NOT sell the car for a specified time frame!

But now that our dollar is strong, yes, the prices of cars are seriously messed up by comparision to the US equivalents.