JETSOLVER Posted June 23, 2006 Report Share Posted June 23, 2006 Thought that this bit of reading might interest us. Edmonton Journal/Cross border car buying 07 Shelby mentioned in an earlier thread that I started here currancy conversion/GT500 base price that he bought his vehicles in the States. " A study finding that the typical new car costs 17 per cent more in Canada than in the United States has "generated a considerable amount of flak from various circles inside and outside the automotive sector," says auto industry analyst Dennis DesRosiers." Link to comment Share on other sites More sharing options...
07 Shelby Cobra Posted June 23, 2006 Report Share Posted June 23, 2006 Thought that this bit of reading might interest us. Edmonton Journal/Cross border car buying 07 Shelby mentioned in an earlier thread that I started here currancy conversion/GT500 base price that he bought his vehicles in the States. " A study finding that the typical new car costs 17 per cent more in Canada than in the United States has "generated a considerable amount of flak from various circles inside and outside the automotive sector," says auto industry analyst Dennis DesRosiers." Quite something, isn't it? By the way Jetsover, sorry I never answered your question about Duty. No Duty on a North American made vehicles. At the border you pay GST, $100 Can Air Tax and a $209 RIV (registry of imported vehiceles fee) The fee pays for your Federal safety Inspection. (km's on the speedoo, child tether anchors, DRLs and french/english safety labels. Al US Fords come with enlish/french and spanish labeling. Used cars are easy to Import, New without Title, can be a pain but not as bothersome as DesRosiers makes it out to be. Link to comment Share on other sites More sharing options...
rbortnick Posted June 23, 2006 Report Share Posted June 23, 2006 I called my dealer about the pricing difference and his comment to me was that when the Canuck dollar was very low that Ford was actually subsidizing the exchange. Thats why the difference now, to make up for this. Does this make sense to anyone or is he feeding me BS Link to comment Share on other sites More sharing options...
BadTony Posted June 23, 2006 Report Share Posted June 23, 2006 explain subsidize? how would Ford do this? Link to comment Share on other sites More sharing options...
JETSOLVER Posted June 23, 2006 Author Report Share Posted June 23, 2006 No Duty on a North American made vehicles. At the border you pay GST, $100 Can Air Tax and a $209 RIV (registry of imported vehiceles fee) :beerchug: So is the GST paid on the U.S. purchase as converted to CAN at the time you cross? Or as is our beloved cabal so fond, its not that simple? Link to comment Share on other sites More sharing options...
rbortnick Posted June 23, 2006 Report Share Posted June 23, 2006 explain subsidize? how would Ford do this? Not really sure - Its just what he told me. Thats why I thought that I would throw it there and see if anyone has heard of this Link to comment Share on other sites More sharing options...
smoothy Posted June 24, 2006 Report Share Posted June 24, 2006 Not really sure - Its just what he told me. Thats why I thought that I would throw it there and see if anyone has heard of this many large companies will enter into hedging contracts to control foreign exchange costs, these contracts will even out the up and down swings in the exchange rates, thats good news when the CAD is very low against the USD, but works against us when the CAD is very high. This is part of the reason I'm seeing if I can get a GT500 imported to Canada, it's bad enough we have to pay $52k for the car (US buyers pay the equivalent of about $47k CAD including the upholstery upgrade we have to take in Canada) but my dealer in town wants to stick me with a further $10k bend-over-and-grab-your-ankles charge (/rant on thanks guys for waiting to tell me about that fee until after every '07 GT500 in Canada has been sold twice over, real classy operation you got going there...at least I have the name of a VP at Ford Canada who I can write to who is very interested in the situation /rant off). Link to comment Share on other sites More sharing options...
JETSOLVER Posted June 24, 2006 Author Report Share Posted June 24, 2006 pm me. Link to comment Share on other sites More sharing options...
07 Shelby Cobra Posted June 24, 2006 Report Share Posted June 24, 2006 I called my dealer about the pricing difference and his comment to me was that when the Canuck dollar was very low that Ford was actually subsidizing the exchange. Thats why the difference now, to make up for this. Does this make sense to anyone or is he feeding me BS Subsidize? Good word for it! Yes, Ford and the rest of the domestic North American automakers artificially set their prices to around a $1.22 Can per $1 US back in the early 00's. This wasn't done to make us happy. It was done to retain Canadian Market Share. Back in 2002, when the US dollar was worth $1.57 Canadian, Ford and the others were afraid of losing market share so they artificially fixed the conversion price at around $1.22 Canadian. They were losing money, as compared to selling the same car in the US. Had they not done so a $25,000 US Mustang would have cost $39250 Canadian instead of $30500 Canadian. I guess with our strengthening dollar they're now making up for those days? It doesn't feel right. :beerchug: So is the GST paid on the U.S. purchase as converted to CAN at the time you cross? Or as is our beloved cabal so fond, its not that simple? If you purchase a vehicle today, but bring it across the border a month later, the Dollar Conversion rate will be based on the day you cross. Yes, the Border Guys convert the US cost of the vehicle into Canadian $ and then base the GST on that. Hint. Bring your vehicle across on a $.91 cent Canadian day! Link to comment Share on other sites More sharing options...
Pony Ride Posted June 24, 2006 Report Share Posted June 24, 2006 We get screwed both ways. In 02 when I bought the Tbird, cost was $40,000 in the US and $59,000 in Canada. Even though the rate was at 1.60 the car cost 1 & half times what it cost in the US. Now the dollar is a lot closer and we still get burned. It would have been cheeper to bring a Shelby in from the US but we all know it would be imposible to find one. I just brought a 67 Caprice back from the US and cars 15 years and older are very easy to bring acrossed. Link to comment Share on other sites More sharing options...
07 Shelby Cobra Posted June 24, 2006 Report Share Posted June 24, 2006 We get screwed both ways. In 02 when I bought the Tbird, cost was $40,000 in the US and $59,000 in Canada. Even though the rate was at 1.60 the car cost 1 & half times what it cost in the US. Now the dollar is a lot closer and we still get burned. It would have been cheeper to bring a Shelby in from the US but we all know it would be imposible to find one. I just brought a 67 Caprice back from the US and cars 15 years and older are very easy to bring acrossed. Yes, only those cars 15 years old and newer are subject to the RIV registry charge. Link to comment Share on other sites More sharing options...
clutch Posted June 24, 2006 Report Share Posted June 24, 2006 many large companies will enter into hedging contracts to control foreign exchange costs, these contracts will even out the up and down swings in the exchange rates, thats good news when the CAD is very low against the USD, but works against us when the CAD is very high. This is part of the reason I'm seeing if I can get a GT500 imported to Canada, it's bad enough we have to pay $52k for the car (US buyers pay the equivalent of about $47k CAD including the upholstery upgrade we have to take in Canada) but my dealer in town wants to stick me with a further $10k bend-over-and-grab-your-ankles charge (/rant on thanks guys for waiting to tell me about that fee until after every '07 GT500 in Canada has been sold twice over, real classy operation you got going there...at least I have the name of a VP at Ford Canada who I can write to who is very interested in the situation /rant off). Smoothy, if you'd care to share that VP's contact info, I have a story coming out of Alberta that will make his stomach turn. Link to comment Share on other sites More sharing options...
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