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Old 03-19-2010, 08:06 AM   #18
Canadian_Stig
 
Drives: Highlander Hybrid, Durango, TurboPT
Join Date: Feb 2010
Location: Ajax, ON
Posts: 28
Agreed, it is not just GM. All cars are cheaper in the US then Canada from a Kia to a Lambo. It's the % difference in price that determines if it's worth it on a case by case basis.

I don't have an issue with the difference in price, US is a larger market, on average the CDN$ is lower then the US$ and Auto Manufacturers set their prices very few times per year often once per year which forces them to speculate on exchange rates over the upcoming year, obviously, leaning to a more profitable side of the equation for them. When the CDN$ to US$ was $.90 that 10% premium on the price of a US$ Camaro selling for $34 (for example) after exchange would be $37500, yes not $10000 difference but it's closer and not as beneficial going through all the work to import. As the CDN$ climbs above the US$ the difference just keeps increasing and the savings grow and grow. As far as I know pricing as already been announce for the Camaro for 2011, but if the CDN$ climbs above the US$ and continues there for the majority of the year, which is predicted you will likely see price adjustments in our favour for 2011.

Where the government should get involved is in situations regarding warranty, recall letters and non-competitiveness. If you look at the apa.ca site linked on a previous post, there are a number of car companies including North American companies (aka Chrysler) that do not warranty imported vehicles. So, for example, I purchase a brand new Challenger SRT8 (built in Ontario) in the US (Buffalo) and import it to Canada I lose the warranty both in Canada and US. Come on! The car's built for Canada and the US are not different enough to constitute voiding a warranty. Second, recall letters, BMW Canada (for example) some how has gotten away with saying that only recall letters from BMW Canada will be acceptable to the RIV (Registered Import Vehicle of Canada - non-profit organization) and you cannot import a vehicle without one (government rules). Unfortunately, BMW Canada does not give this recall letter for free, in fact the charge for it, and charge A LOT! Most cases a recall letter costs almost as much as the savings you would get by purchasing a BMW in the US. Which is why I'll never buy a BMW in Canada or the US EVER! Talk about anti-competitive. Unfortunately, they are having so much success other auto manufacturers are trying to do the same thing. Hence, why we recommend you get your recall letter in the US for your new Camaro instead of in Canada as GM Canada will charge you for it. Finally, sorry to make this long, anti-competitiveness by auto manufactures is ridiculous! Penalizing dealers for selling to Canadian is hugely anti-competitive. If this was allowed manufactures WOULD have to take exchange rate fluctuations into account more often which would result in more people "Buying Canadian". For example, the dealer I bought my Highlander from in the US can no longer sell directly to Canadians and have been penalized by Toyota US for selling directly to Canadians with restricted allocation for new "premium" vehicles. By removing these three items from the equation and Canada new Camaro buyer would win!

Unfortunately, as long as volume of vehicle sales in Canada far outweighs imports and ridiculous anti-competitive policies/rules as stated above continue to be allowed we will continue to pay a lot more for the same vehicle then our neighbours to the south of us.

Sorry for the long winded response.
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