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Re: Importing a car to Canada
From Leftlane News
If you live in Canada, you're probably already aware the Canadian dollar matched the U.S. dollar for the first time since 1976 yesterday. Canada's currency has been inching toward par all year, finally coming in line with the greenback on Thursday. Unfortunately for Canadians, car prices have not kept up with trend. But that may be about to change.
Back when it took $1.50 in Canada to match one U.S. dollar, Canada's higher car prices were perfectly logical. A car the sold for $50,000 in America would sticker for $75,000 at a Canadain dealership. Those days are long gone, but car prices remain high.
Take the Porsche Cayman S, for example. If a car shopper in Canada heads to his or her nearest Porsche dealership this weekend, they will have to shell out nearly $85,000 for the mid-engine coupe — a whopping $26,000 more than the U.S. MSRP of $59.000. Similarly, a BMW M5 retails for $83,000 in America and $113,000 in Canada.
According to Quebec's Guide Auto website, luxury automakers including BMW, Mercedes-Benz, Audi, Porsche, and others are preparing to cut their Canadian prices by up to 15 percent in response to the currency changes. According to the French publication, Porsche plans to drop the price of its Cayman S by $10,000 in Canada — a modest cut, but a far cry from the full $26,000 difference.
As for the rest of the auto industry, Guide Auto didn't say whether domestic prices would be adjusted. Even the entry-level Saturn Sky costs $7,000 more in Canada than in America. Even the Dodge Charger — which is built in Canada — costs $6,000 more at Canadian dealers.
The currency problem poses a serious dilemma to automakers, who have to keep new car shoppers happy, without sending the value of used cars plummeting or enraging buyers who make their purchase before price cuts.
Automakers are expected to announce Canadian pricing for the 2008 model year next month. Many analysts suspect Canadians will turn to importing vehicles from America if major price cuts are not implemented.
From Leftlane News
If you live in Canada, you're probably already aware the Canadian dollar matched the U.S. dollar for the first time since 1976 yesterday. Canada's currency has been inching toward par all year, finally coming in line with the greenback on Thursday. Unfortunately for Canadians, car prices have not kept up with trend. But that may be about to change.
Back when it took $1.50 in Canada to match one U.S. dollar, Canada's higher car prices were perfectly logical. A car the sold for $50,000 in America would sticker for $75,000 at a Canadain dealership. Those days are long gone, but car prices remain high.
Take the Porsche Cayman S, for example. If a car shopper in Canada heads to his or her nearest Porsche dealership this weekend, they will have to shell out nearly $85,000 for the mid-engine coupe — a whopping $26,000 more than the U.S. MSRP of $59.000. Similarly, a BMW M5 retails for $83,000 in America and $113,000 in Canada.
According to Quebec's Guide Auto website, luxury automakers including BMW, Mercedes-Benz, Audi, Porsche, and others are preparing to cut their Canadian prices by up to 15 percent in response to the currency changes. According to the French publication, Porsche plans to drop the price of its Cayman S by $10,000 in Canada — a modest cut, but a far cry from the full $26,000 difference.
As for the rest of the auto industry, Guide Auto didn't say whether domestic prices would be adjusted. Even the entry-level Saturn Sky costs $7,000 more in Canada than in America. Even the Dodge Charger — which is built in Canada — costs $6,000 more at Canadian dealers.
The currency problem poses a serious dilemma to automakers, who have to keep new car shoppers happy, without sending the value of used cars plummeting or enraging buyers who make their purchase before price cuts.
Automakers are expected to announce Canadian pricing for the 2008 model year next month. Many analysts suspect Canadians will turn to importing vehicles from America if major price cuts are not implemented.
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