Skip navigation

 Login or Register | Member Centre

Consumers suspicious of automobile pricing

GREG KEENAN

AUTO INDUSTRY REPORTER

Latest comment posted at 3:17 PM EST 19/01/08

Survey respondents believe vehicles are less expensive in the United States, and want the government to act ...Read the full article

This conversation is closed

  1. bill johnson from Quebec, Canada writes: Excellent study. I am surprised that Canadians are so aware of the real price differences between the 2 countries. The automakers and one prominent auto 'expert' have done everything possible to obfuscate the issue. Oddly, just last year the same auto analyst reporters that consumers were getting ripped off.

    The government really ought to look into collusion in price setting in the auto industry, beginning with transportation/destination (PDI) charges. They are uniformily 2-3 times higher than in the states.

    Open up the border by harmonizing all standards with the USA. Accept dealer (USA) printouts that there are no recalls on vehicles. Do not let the likes of Mercedes, BMW, Volvo etc dictate which cars can be imported by their outrageous fees to turn on daytime running lights or providing a recall letter. Honda/Acura is the worst - they punish Canadian consumers and US dealers for selling to us. Enough is enough.
  2. Kothar Rumbleg from Canada writes: They (car manufacteur and new car dealers) even go so far to say in either country that if you sell a Canadian bought car in US or a US bought car in Canada, that the respective "worth" is much much less than the one already available in the country! So for all the Canadian used dealers selling US bought cars on their lots should be charging near rock bottom prices compared to a previously bought Canadian car? Don't think so! but these vehicles are somewhat lower, the used dealer is still selling to make a profit. The industry is using every smoke, mirror and trick they can to save face. Too little too late!
  3. Joe Anonymous from Montreal, Canada writes: I strongly agree with the first writer' comment. Remove the barriers to the U.S. car market and let supply and demand dictate pricing. Legislate those car companies who do not comply with punitive damages.

    I want to buy the new 2008 Malibu...about $3000 cheaper in the US, but they (RIV/Transport Canada) are not even allowing me my right as a consumer, to shop for the best deal!

    Enough is enough.
  4. Michael Buffy from Winnipeg, Canada writes: I agree with the first writer's comment about the need for absolute harmonization. It is central to the auto manufacturers power to use non-tariff trade barriers.

    In May 2007 CAPC (Canadian Automotive Parnership Council) indicated that Transport Canada was unwilling to harmonize bumper standards.

    Transport Canada has given us until Dec 31/07 to provide our comments to them on the alternatives that they are suggesting.

    You can find the Transport Canada Notice and all the details relating to thei bumper "initiative" at
    http://canadagazette.gc.ca/partI/2007/20071013/html/notice-e.html

    This is your chance to demand harmonization on this issue..if you want fairer pricing from the auto manufacturers.
  5. R L from Montreal, Canada writes: Nice time to run this article, everyone is sleeping or getting ready for the holidays.. I would like to see them run it on a big Friday or Saturday edition right across the page from a big car add enticing Canadians to come into the showrooms and get gouged!
  6. Luc Lafrance from Ottawa, Canada writes: What an odd choice of words for the title of this article. Suspicious. As in: "do I suspect that I'm being screwed?". I KNOW I'm being screwed by the manufacturers. A much better title would have been: "Consumers OUTRAGED by automobile pricing.". I'm surprised this article is still posted; let's see if it's there Thursday morning. Bet ya it's not ;-)
  7. bmwcanada sux from Toronto, Canada writes: News papers will pounce on dirt and scandals from politicians and celebrities. True or not, they will report first, verify later. Yet this car company-anti competitive,anti-free-trade,extortionist tactics go largely unreported or in this case so watered down that makes skim milk look like butter. Could it be the Ad revenue from those giant "We-are canadian-auto-and-we-are-giving-you-the-greatest-deal-ever Ads" are somehow moderating reporters angle? Surely not. Reporting is about justice and integrity right?

    To those who don't do their research, it appears that Canadian auto is lowering their prices and bending to consumer pressure. What they don't see is the flip side. The dirty tactics that they use thanks to RIV's pro-Canadian Auto rules. Transport Canada is suppose to keep roads safe.Make sure cars on the road are safe. How is forcing you to ask BMW Canada if you can import a US BMW saving lives (Look at the RIV list for conditions of Admissibility)? How is forcing you to go to a Canadian dealer to turn on your day time running lights, or if on already, to charge you to check that it is turned on properly reducing accidents? How is making sure you have to go to the Canadian company to pay $500 or more for a recall letter improving safety. How about - before we will issue you the vital letter, we can force you to make any number of unnecessary changes and charge you $1500 for it.

    This post will probably get cut but every comment made is true. The numbers are true and way things are being done is true. I've had personal experience with BMW when I imported my vehicle. Many others have faced it with their BMW and other vehicles. Don't take my word for it - search "BMW Recall Clearance letter" and you will see the dirt (especially in the ebay forum) yourself.
  8. Dr Demento from Canada writes: On the other hand don't forget that 6 to 10 years ago, cars were cheaper in Canada, and although most American consumers weren't aware of it, many American car dealers purchased cars in Canada for resale in the USA.
  9. Vickky Angstrom from Canada writes: I love how they use the word, "believe" like this might be a fiction or a religion. There is no question of belief in the age of the internet. Depending on the car, one can save anywhere between $6,000 and tens of thousands. No belief about it. Simple fact. The auto multinationals have been ripping Canadians for years.

    Pretty soon I won't buy a car from any of them. Wait until Canadians figure out its cheaper to take public transit to work and back and take a cab for everything else!!! It will take a while to convince them, but hey, if you organize yourself a bit, it's true!
  10. Aloha Eric from Toronto, Canada writes: I find it hilarious that the article mentions that the "auto makers responded first with incentives for cash buyers, then cut prices with rebates, subsidized lease rates and other incentives."

    The reality is that the automakers responded first with ridiculous rationalizations, provided meagre incentives, and are now resorting to desperate tactics by setting up barriers to free trade.

    A case in fact is BMW who is charging $500 to tell you if your car has a safety recall that could result in driver injury or death. This takes 15-20 days to "process" according to their website. Suffice to say that this information is available free and immediately on the internet as it should be. They are also charging $350 to determine if your car is admissable to Canada, whereas 3 weeks ago this information was posted for free on Riv.ca. Does the writer consider these tactics to be "other incentives"?
  11. S B from Canada writes: Dr Demento from Canada writes: On the other hand don't forget that 6 to 10 years ago, cars were cheaper in Canada, and although most American consumers weren't aware of it, many American car dealers purchased cars in Canada for resale in the USA.

    Yup, and when our dollar falls back below parity, the same whiners will emerge on the other side of the argument.
  12. Helder Silva from writes: It amazes me how much these greedy automakers must think Canadians are gullible. Do they really think that such “smoke & mirror” tactics with phrases like: “bonus pricing, fair deal, price adjustments, etc..” are going to trick the savvy Canadian consumer into believing they are getting a fair shake when prices across the border are significantly lower on ALL vehicles....not just a select few. Come on manufacturers, the dollar is at parity and we are still paying bloated prices while our American counterparts are paying significantly less with their dollar that has the same value.

    If you guys invested half the time and money in actually providing fair prices as you do in advertising and trying to trick the public with snake oil gimmicks, you would have customers that would actually treat you with respect and you might even gain some loyalty and sales.

    Give us fair pricing based on our strong dollar and you will see sales rise along with consumer loyalty....give us phony pricing schemes and see our hard earned Canadian dollars crossing the border. Putting up obstacles to this will only villianize you guys further and make us even more determined to fight back.
  13. J. R. from Halifax, Canada writes: If you dial that internet a little further, you'll realize that Canadians have some of the cheapest cars in the world. Cheaper than Asia or Europe, where many of the cars are made. They're only expensive when compared to the US, where everything is cheaper than in Canada. The Canadian dollar is going to drop, car prices are going to stay where they are, and this tempest in a teapot will go away.
  14. Luc Lafrance from Ottawa, Canada writes: J. R.,
    You think the C$ is going to drop; I think it's going to stay at least at parity as the US enters a recession that will not affect the rest of the world. jmho. In my scenario deals south of the border get even sweeter as manufacturers try to accommodate weary US customers.
  15. Roberto Segado from Canada writes: The government should definitely make illegal (and prosecute) any non-competitive practices (such as forbidding US dealers to sell to Canadians, overcharging by dealers to convert daylight running lights, etc.), it should also require manufacturers to honour guarantees across borders, and it should eliminate red-tape for individual importers. Competition will do the rest; I don't think the government should get directly involved in regulating prices.
    Consumers should also vote with their feet and wallets by refusing to buy overpriced cars, by either buying in the States or deferring their purchase until prices are on par.
  16. Roberto Segado from Wolfville, Canada writes: Cheaper than Europe and Asia? Sure, but we can't drive across the ocean while we can easily drive across the US border :)
  17. Luc Lafrance from Ottawa, Canada writes: Europe and Asia? How about not comparing apples and oranges. A lot of the cars sold in Europe/Asia could never be driven on a public road in NA, whereas most cars sold in the US are identical to those sold in Canada (regardless of what the manufacturers claim). I read a post not too long ago that concluded that cars were by far the cheapest in the US. Good for us Canucks to be right next to that market, with our dollar at parity.
  18. Nick Cameron from Canada writes: Quoting J.R.: "The Canadian dollar is going to drop, car prices are going to stay where they are, and this tempest in a teapot will go away."
    .......You're right, we should all be good little consumers and stick our heads in the sand while this all blows over.
  19. Jay Dow from Kelowna, Canada writes: We are supposed to have "Free Trade" between Canada and the US.

    Sure doesn't seem like it now that they are starting to deny warranty, restricting eligible vehicles because of their imobolizers, bla bla bla....

    Free Trade... I don't think so!
  20. roger haskett from Canada writes: This article does make some good points. Although I agree that saying that Canadians "believe" prices are cheaper in the US (for the exact same car!!) is disingenuous. Why not make the point that cars are actually cheaper. Those are the facts!

    Please go to www.carswithoutborders.com to hear the Canadian consumers' side of the story.

    "Dirty Tricks" also doesn't quite capture the reality of the illegal lengths these multinationals will go to to protect their profits (discriminating against canadians by refusing to sell to them!, punishing US dealers who do sell to Canadians, recall letter lies, etc...

    Nor does this article really examine why our Canadian gov't has been helping these multiinationals fix pricing in Canada, circumvent our free trade policies, create bureaucracies that take power our of citizen's hands and place citizens at the mercy of these multinationals etc...

    a quick look at www.carswithoutborders.com is well worth it!
  21. bill johnson from quebec, Canada writes: Write to Matt Coons at Transport Canada and request that the federal government make further changes to harmonization laws, specifically to the Canada-only bumper standard. They are considering harmonizing the standard with the US standard. Please send Matt and email at the following address ASAP:

    COONSM@tc.gc.ca

    Harmonization would make it much easier and cheaper to import vehicles from the states. Some currently cannot come in unless they get a new bumper or addition of foam backing (very expensive even though materials probably cost $0.10).
  22. Joe Anonymous from Montreal, Canada writes: WOW!

    I just took a look at carswithoutborders.com and found a cool utility that compares US and Canadian prices on numberous cars...instantly. e.g.: the 2008 Malibu LT2 is over $4000 more here in Canada!

    "A Tale of Two Prices" at
    http://www.ataleoftwoprices.com/default.aspx

    Thank you Mr. Haskett for the comment!
  23. S H from Windsor, Canada writes: Dr.Demento....I live in Windsor, there has never been a time that I can remember when cars were cheaper in Canada.

    In fact there was a story in the Windsor Star last week where they questioned an auto exec. (I forget who)why cars cost more in Canada? His reply was "that Canadians are cheap (don't spend as much), keep their cars longer (7 years) compared to Americans who keep their cars for only 4 yrs. That's why the companies charge Canadians more!!!

    So my reply was, "if they charged Canadians less, maybe we would spend more, more often"!
  24. Peter M from Ottawa, Canada writes: very good point S.H. - The reasoning provided by the auto execs for the high prices in canada mocks the intelligence of the Canadian consumer. I have occasionally sent off letters to dealerships of various manufacturers and the excuses they reply with are incredibly insulting and so very similar in tone.
  25. Mike Pontarelli from Chicago, United States writes: Auto dealers in Canada are nothing but white collar criminals. A 2008 Honda Pilot 4WD base 1 Model on the road is 27,500. That includes all taxes licensing etc, with Cook Counties supposedly highest taxes in the US. Similar quote on Honda Pilot in Toronto was 46,380CDN on the road. Keeping in mind the CDN dollar is worth more this is stealing.

    I SUGGEST ALL CANADIANS TO HEAD DOWN SOUTH TO BUY CAR! JUST TELL THEM CANADIAN DEALERS TO MATCH IT OR LOSE BUSINESS!.

    CUSTOMER IS ALWAYS RIGHT AND AT THE END YOU THE CUSTOMER WILL WIN!
  26. Mike Pontarelli from Chicago, United States writes: Let me also add:

    Canadians probably only compare the online MSRP prices on the .com websites.

    They most likely won't know the local dealer slashing prices upto 8000$ on domestic cars and imports like Honda/Toyota/Nissan will slash upto 5000$ rebates.

    If you open any newspaper in print and go to auto section you will find ridiculously lower prices and people are selling!

    I wonder how much more frustrated Canadians get when they visit their American cousins and turn to the auto section!
  27. Michael Lee from Surrey, Canada writes: We Canadians are very internet savvy and are well aware of the money to be saved by buying a vehicle in the US.

    I saved about $15,000. The Canadian dealer is offering $4,000 off.

    Vote with your wallet. That's the only thing these jokers know.
  28. J G from Canada writes: And do not forget the delivery fee in Canada is double the US ($1300 vs 650) so typically $650 profit without even considering the difference in MSRP let alone the huge US discounting. Look at edmunds.com
  29. robin wallace from Winnipeg, Canada writes: It's easy to get caught up in all the hype over price, but what consumers should be doing is research. On average, US pricing is 5-10% less than Canada, so on a $25,000.00 purchase in Canada, you would save between $1,250.00 to $2,500.00. Now, consider the cost for a broker and shipping or your time to import the vehicle, the fact that you can not lease or finance with subvented rates, how much are you really saving?

    As a 22 year veteran of the auto industry, I would strongly suggest that if consumer's spent more time considering who they were buying the vehicle from (honesty, intergerty, after sales service, etc.), they would be much more satisfied with the purchase, have less stress and not be concerned with the nominal amount of money they save (if any).
  30. Luc Lafrance from Ottawa, Canada writes: robin wallace,
    Please browse the many internet posts that detail the savings people made by buyin a car in the US. Most of the time, it's a 5-digit figure AFTER all expenses are factored in. Off the top of my head a base Malibu LS is $20K in the US, $23K in Canada; a Malibu LTZ is $27K in the US, $34K in Canada; an Accord EX-L V6 Navi is $32K in the US, $40K in Canada; a Volvo C70 is $47K in the US, $67K (!!!) in Canada. All the prices I just quoted are for cars equipped with the same options. I'll take in consideration all the factors you mention AFTER car prices in Canada are adjusted.
  31. bill johnson from Quebec, Canada writes: Robin...how can you use words like 'honesty' and 'intergerty' (sic) to describe yourself when you continue the flat-out non-truth regarding pricve differentials between the USA and Canada? Reall, as Luc so clearly showed, the differences are often >10K. If Canadian dealers could charge 10K more for their compacts they would do that too.

    And Robin, tell me why the destination charge is more than twice that of the USA charge, even for cars shipped to Alaska. Really, I hate anti-competitive behaviour, and the car industry in Canada is acts like one big oligopoly. I have saved >20K buying a hybrid SUV in the USA for my wife, and I will buy my next car there too. So you have lost about 5 years of business. I hope you guys all go out of business.
  32. Adam Brin from Toronto, Canada writes: For these who do not believe that price difference is that big - I just put a licence plates on new 2008 Toyota Sienna XLE Pckg1 (leather, shades) fog light that I imported from US. Total price paid to US dealer was 28500 US$. I added all expenses and compared every option between cars in Canada and US. I assumed that I can get same car here with 1500$ rebate and then negotiate with dealer another 1000$. I compared price to Canadian LE ValuePackage. I added all my expenses and my savings are over 10000$ even when I paid for one way airplane ticket 1000$. All paperwork was very simple. Hardest part was to find a dealer.
    There is a huge price difference between Canada and US!
  33. You (Mike L., from Canada) wrote: S H from Windsor, Canada writes: "Dr.Demento....I live in Windsor, there has never been a time that I can remember when cars were cheaper in Canada."

    In 2002, the MSRP of the base Honda Accord was $15500 in the US.

    In Canada, it was $23,000.

    In 2002 the Loonie average exchange rate was US$0.6368. If the Canadian MSRP was truly exchange-rate adjusted, the car would have sold for $24340.

    So in fact on an exchange-rate adjusted basis, the 2002 Accord was actually $1340 cheaper in Canada than the US.

    Maybe not by as much as the current rip-off, but definitely cheaper.
  34. S H from Windsor, Canada writes: Mike L....but a dollar in the US is worth a dollar and a dollar in Canada is worth a dollar. So in fact the American is paying less. I'm sure if you used the Civic as an example, the price difference would still be the same even though the Civic is built in Canada. Honda spent less to produce this car in Canada because of the dollar and not paying for health care,etc...!

    I know these companies always used the dollar as their excuse in the past, what is their excuse now? It's called greed and you people wonder why there are unions! If they're willing to screw the customer over, what do you think they'll do to their employees?
  35. David Bannister from writes: All of these comments make me glad I'm not currently in the market for a new car. When you have to argue with manufacturers or dealers on why prices are so out of whack, it's a good time to sit back and let market forces level things out. For the most part, no one is compelled to buy a new car.
  36. D K from Canada writes: Some Dealers are now importing cars from the US. Ads for a 4-runner from the US @$28K vs $40K in Canada. Awesome.
  37. Andrew Lecky from Ottawa, Canada writes: It makes me crazy to see what the US price is for an SUV like a 2008 Honda Pilot or a 2008 Toyota Highlander. How is it possible that I can buy the Pilot EXL for 31K brand new in the US where the best price I can seem to get in Canada is 41K. Aren't these SUV's built in Alliston, Ontario? I don't mind paying the Canadian Taxes when I register the vehicle and pay the sales tax on the Canadian market value at all - because I am saving around 10,000 to 12000 dollars when I buy in the US. The dealer fees in the US are a also a third of what they are in Canada. I wish the Canadian Honda dealers could give me a reason to buy in Canada. Check out some of the US car sale sites and you will see what I mean - heck many Ottawa car dealers are buying the cars for their lot used in the US - and then bringing them back to Canada and still selling them for a substantial profit - why? because the price difference is huge - with our dollar so high - now is the time to buy and if Canadian dealers like Honda are not going to be competitive - well then expect people to go to the US - believe me there is nothing more that I would like to do then spend my money in Canada - but when I can save 10,000 dollars or more by just crossing the border, I would be a fool to spend it at a Honda dealer in Canada.
  38. William Nichols from Halifax, Canada writes: I asked GM why they charge about $6,000 more for a 2008 LTZ Malibu in Canada compared with the US. They replied that all their cars are priced according to market conditions. In otherwords if we are stupid enough to pay more in Canada they will oblige.
    I am one of those who does not trust the auto industry when they say they are giving rebates to equal US pricing. Stop the rebates and just lower the MSRP then we will know what we are starting from when pricing the autos, of couse the auto makers would prefer we not know anything so that our ignorance can be taken advantage of. My beef is not with the dealer who is caught in the middle.

Comments are closed

Thanks for your interest in commenting on this article, however we are no longer accepting submissions. If you would like, you may send a letter to the editor.

Report an abusive comment to our editorial staff

close

Alert us about this comment

Please let us know if this reader’s comment breaks the editor's rules and is obscene, abusive, threatening, unlawful, harassing, defamatory, profane or racially offensive by selecting the appropriate option to describe the problem.

Do not use this to complain about comments that don’t break the rules, for example those comments that you disagree with or contain spelling errors or multiple postings.

Back to top