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US shopping not easy
Canadian bargain hunters face roadblocks
Deborah Tetley , Calgary Herald
Published: Saturday, October 20, 2007
Canadian shoppers bargain hunting south of the border for big-ticket items are seeing a growing number of roadblocks erected in front of them.
As the rising loonie makes shopping in America cheaper by the day, some dealers have been ordered not to do business with Canadians. Calgary's Carla Abraham wasn't going to take no for an answer when she went shopping for a Honda minivan that at $32,000 was thousands cheaper in Montana.
She got in just under the wire before Honda ordered sales to Canadians be shut down. "If we were talking a $1,000 or $2,000 difference this would not be an issue," Abraham said. "But we're talking more than $9,000. Sorry, I am not that patriotic." Canadians bought a record 112,826 vehicles in the U.S. last year - a number that continues to spike as the dollar remains strong.
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Font:****Analysts predict that number could increase to 160,000 this year. Canadian buyers aren't the only ones frustrated. Ben Eisinger, owner of Eisinger Honda in Kalispell, Mont., says his manufacturer's abrupt decision last week to prohibit cross-border new-vehicle sales to Canadians will cost him tens of thousands of dollars. "Honda has forgotten the most important element in all of this and that's the customer," said Eisinger, who says he has more than two dozen vehicles languishing on his lot ordered for Canadian buyers, mainly from Alberta.
"Because of the sheer volume of Canadian orders recently, the manufacturer just stopped it, cut it off - no more sales across the border." Despite the manufacturer's new policy, Eisinger honoured the deal with Abraham, since her transaction was nearly complete, he said. She is taking ownership of her new, American-bought minivan this weekend. "I was damned if I don't and damned if I do," said Ben Eisinger.
"I hate to say it, but if I didn't do it, someone else would have." It's not only vehicle sales causing a stir. While Honda, Toyota, GM, Acura, Ford, Audi and a growing list of automakers are denying Canadian exports, it's becoming increasingly difficult for Canadians to buy snowmobiles, watercraft and ATVs in the U.S. Quebec-based Bombardier Recreational Products came under fire this week for its regional distribution policy that prohibits American dealers from selling their lower-priced products to Canadians.
In some cases the price difference is 40 per cent. Bombardier dealers in the U.S. say the company hiked its punitive measures aimed at stopping Canadians from going to the U.S. to buy its recreational vehicles as the loonie reached parity in late September. Bombardier had always required its American dealers to charge Canadian customers a 7.5-per-cent surcharge for purchases but earlier this month the manufacturer told dealers they had to charge 7.5 per cent or $1,250, whichever was higher. A few days later, Bombardier imposed a $3,000 surcharge and a few days after that simply prohibited all sales to Canadians.
"It's turned into a very touchy situation for us," said Dean Lingelbach, owner of One-Way Marine and Motor Sports in Helena, Mont., which sells Bombardier vehicles. He says about eight per cent of his customers are Albertans - with the call volume increasing daily since late September, when the loonie was first on par with the U.S. dollar. "The prices for Canadians are outrageous, when you look at ours, but I understand the manufacturer not wanting to cut the throats of their dealers up north," Lingelbach said. Robert Taylor, who owns Taylor Bros.
in Great Falls, is encouraging Bombardier, automakers - even other RV retailers - to reconsider their policies. "The motels here are full every weekend with Canadians looking for a fair deal," said Taylor. "It would be a good move for our economy." Indeed, protecting the interests of Canadian dealers who could lose customers to American dealers selling the same equipment is part of the motive behind Bombardier's move, officials say. Bombardier spokesman Pierre Pichette said the policy is not meant as a slight against Canadians. "We understand the frustrations and we want to be fair," said Pichette, adding the company is reviewing its policy. "But we need to make sure we make the right move so we don't create a lot of turbulence for the market." Consumers' Association of Canada president, Bruce Cran, noted the irony of Bombardier refusing sales to Canadians. "Do they think we are a bunch of dupes that we are putting up with this stuff?" said Cran.
"Bombardier has been subsidized by Canadian taxpayers over great many decades and now they will sell to Americans - and only Americans - for 40 per cent less? That's the reward we get?" Not everyone, however, is upset about Bombardier's stance. Darryl Copithorne is president of the Calgary Snowmobile Club, which has roughly 200 members. He said the group prefers to buy locally. "It's a two-way street," he said. "We give them support and they will take care of us first when we come in for warranty, parts and technical support. That can all be gone if you go outside the border."
Some American car dealers say the automakers' policy of not exporting to Canada is not entirely new, but due to increased demand from Canadian buyers has only now become more strict - and necessary to enforce. "In 25 years I think I have sold two rigs to Canada," said Greg Hlad, new car manager at Bison Ford, in Great Falls. "Now we're getting all sorts of calls and we have been instructed not to sell new vehicles to Canadians." With a file by CanWest News Service
Canadian bargain hunters face roadblocks
Deborah Tetley , Calgary Herald
Published: Saturday, October 20, 2007
Canadian shoppers bargain hunting south of the border for big-ticket items are seeing a growing number of roadblocks erected in front of them.
As the rising loonie makes shopping in America cheaper by the day, some dealers have been ordered not to do business with Canadians. Calgary's Carla Abraham wasn't going to take no for an answer when she went shopping for a Honda minivan that at $32,000 was thousands cheaper in Montana.
She got in just under the wire before Honda ordered sales to Canadians be shut down. "If we were talking a $1,000 or $2,000 difference this would not be an issue," Abraham said. "But we're talking more than $9,000. Sorry, I am not that patriotic." Canadians bought a record 112,826 vehicles in the U.S. last year - a number that continues to spike as the dollar remains strong.
Email to a friend
Printer friendly
Font:****Analysts predict that number could increase to 160,000 this year. Canadian buyers aren't the only ones frustrated. Ben Eisinger, owner of Eisinger Honda in Kalispell, Mont., says his manufacturer's abrupt decision last week to prohibit cross-border new-vehicle sales to Canadians will cost him tens of thousands of dollars. "Honda has forgotten the most important element in all of this and that's the customer," said Eisinger, who says he has more than two dozen vehicles languishing on his lot ordered for Canadian buyers, mainly from Alberta.
"Because of the sheer volume of Canadian orders recently, the manufacturer just stopped it, cut it off - no more sales across the border." Despite the manufacturer's new policy, Eisinger honoured the deal with Abraham, since her transaction was nearly complete, he said. She is taking ownership of her new, American-bought minivan this weekend. "I was damned if I don't and damned if I do," said Ben Eisinger.
"I hate to say it, but if I didn't do it, someone else would have." It's not only vehicle sales causing a stir. While Honda, Toyota, GM, Acura, Ford, Audi and a growing list of automakers are denying Canadian exports, it's becoming increasingly difficult for Canadians to buy snowmobiles, watercraft and ATVs in the U.S. Quebec-based Bombardier Recreational Products came under fire this week for its regional distribution policy that prohibits American dealers from selling their lower-priced products to Canadians.
In some cases the price difference is 40 per cent. Bombardier dealers in the U.S. say the company hiked its punitive measures aimed at stopping Canadians from going to the U.S. to buy its recreational vehicles as the loonie reached parity in late September. Bombardier had always required its American dealers to charge Canadian customers a 7.5-per-cent surcharge for purchases but earlier this month the manufacturer told dealers they had to charge 7.5 per cent or $1,250, whichever was higher. A few days later, Bombardier imposed a $3,000 surcharge and a few days after that simply prohibited all sales to Canadians.
"It's turned into a very touchy situation for us," said Dean Lingelbach, owner of One-Way Marine and Motor Sports in Helena, Mont., which sells Bombardier vehicles. He says about eight per cent of his customers are Albertans - with the call volume increasing daily since late September, when the loonie was first on par with the U.S. dollar. "The prices for Canadians are outrageous, when you look at ours, but I understand the manufacturer not wanting to cut the throats of their dealers up north," Lingelbach said. Robert Taylor, who owns Taylor Bros.
in Great Falls, is encouraging Bombardier, automakers - even other RV retailers - to reconsider their policies. "The motels here are full every weekend with Canadians looking for a fair deal," said Taylor. "It would be a good move for our economy." Indeed, protecting the interests of Canadian dealers who could lose customers to American dealers selling the same equipment is part of the motive behind Bombardier's move, officials say. Bombardier spokesman Pierre Pichette said the policy is not meant as a slight against Canadians. "We understand the frustrations and we want to be fair," said Pichette, adding the company is reviewing its policy. "But we need to make sure we make the right move so we don't create a lot of turbulence for the market." Consumers' Association of Canada president, Bruce Cran, noted the irony of Bombardier refusing sales to Canadians. "Do they think we are a bunch of dupes that we are putting up with this stuff?" said Cran.
"Bombardier has been subsidized by Canadian taxpayers over great many decades and now they will sell to Americans - and only Americans - for 40 per cent less? That's the reward we get?" Not everyone, however, is upset about Bombardier's stance. Darryl Copithorne is president of the Calgary Snowmobile Club, which has roughly 200 members. He said the group prefers to buy locally. "It's a two-way street," he said. "We give them support and they will take care of us first when we come in for warranty, parts and technical support. That can all be gone if you go outside the border."
Some American car dealers say the automakers' policy of not exporting to Canada is not entirely new, but due to increased demand from Canadian buyers has only now become more strict - and necessary to enforce. "In 25 years I think I have sold two rigs to Canada," said Greg Hlad, new car manager at Bison Ford, in Great Falls. "Now we're getting all sorts of calls and we have been instructed not to sell new vehicles to Canadians." With a file by CanWest News Service
If it's smoken it ain't broken
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