Canadian Vehicle Prices Still Higher Than in the United States

Author: Hiteshbhoi | Posted: 03.01.2012

It has been generally well known that Canadians, for the most part, pay more for their cars than Americans. Of course, right? After all, USA is home to some of the largest car companies in the world. The cost of importing all those cars into Canada from the USA must account for the price differences between American and Canadian cars, right?

Not exactly. The North American free trade agreement states that any car manufactured within North America can be imported or exported between North American countries free of duty.

In recent years Canadians have been importing record numbers of vehicles from the U.S.A. into Canada. While the exchange rate between the Canadian and American dollar has not had Canadians at such a great advantage in years, there are yet many other reasons why Canadians are flocking south of the border to make their next car purchase.

In a recent comparison between American and Canadian vehicle prices, it was found that Canadians are paying almost 20% more than Americans are for their new vehicles. That means most Canadians are currently paying about $5000-$6000 more, on average, than their neighbors to the south.

Car manufacturers justify their pricing with the argument that they are making up for lost dollars in the Canadian market, or that their pricing is simply set to what consumers have grown to accept. Seems pretty fair, companies should be allowed to set their pricing at a competitive rate, regardless of what is considered ‘competitive’. So are Canadians fated to pay high prices for new vehicles?

“Canadian consumers have to pay whatever the car manufacturers tell them to pay” says Kyle Jackson, author of ‘ImportCarToCanada!’, an information website for Canadians who are looking to import a vehicle from the U.S.A. “Their perception is that they don’t have the choice – a lot of Canadians are being ripped off and pushed around by rich car companies, and the worst part is, most Canadians don’t even know it!”.

ImportCartoCanada! helps Canadians with just about every aspect of importing cars into Canada from the U.S.A. Everything from step by step instructions, to money saving tips, and even hosts a community of other Canadians who talk about their own experiences importing vehicles.

“Why should a Canadian pay $52,000 for a brand new BMW 331i, when he could drive across the border and pick up the exact same car brand new for almost $12,000 less?” says Jackson. “I wanted to make a site where Canadians could quickly realize that they don’t have to pay all the high prices they see on cars, they just need to do a little research.”

Mr. Jackson’s site may give Canadians all the answers they need about importing cars from the United States to save money, but what about car prices in Canada, will they be like this forever? “Like any market, the Canadian car market will take time to adjust. These changes happen, just not overnight.”

Until the market does change, Canadians will be paying higher car prices than Americans, or like many others, getting informed, and taking a trip to an American dealership to save themselves some money.



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