The Clever Shark

A selection of links and rants by Tony A. Emond

Canadian Car Prices File: an experiment

This article has moved! I can now be found here: http://ambitiousbutrubbish.com/2007/09/canadian-car-prices-file-an-experiment/

Fri, September 21 2007 » Links

4 Responses

  1. shakybarnes September 26 2007 @ 17:18

    Why would you expect cars or anything else in Canada to get cheaper just because your currency has risen relative to the dollar? Does every one in Canada get a pay cut when the currency rises? The point is that the cost of Canadian labor in Canada dollars remains the same (doesn’t it?), so why would you expect the product of that labor to have a reduced price tag?

    In theory, a pure American export may become cheaper once cost reductions work their way through the supply chain, but still a lot of Canadian labor touches anything distributed in Canada. As for cars, many “American” cars and their parts are made in Canada by labor paid in Canadian dollars anyway.

    If Canadians go so nuts buying across the border that Canadian car dealers find that can’t move their inventory anymore, that’s when they’ll start cutting prices. But they won’t til they have to.

  2. clevershark September 26 2007 @ 21:24

    The point is that the cost of Canadian labor in Canada dollars remains the same (doesn’t it?), so why would you expect the product of that labor to have a reduced price tag?

    You wouldn’t. That’s why all but one of the cars on the list are imported from somewhere else than the US.

  3. weasel September 27 2007 @ 11:11

    There is something to be said for open financial borders… Global village, you know? It would remove all these discrepancies without that inefficient layer of administration.

    I’m mainly talking Devil’s Advocate here, but the point does stand. Most things us Canadians complain about, economically, can be solved by all those pacts and treaties that we rally against.

  4. clevershark September 27 2007 @ 11:21

    The thing is, I’m not so sure that it’s as easy as the carmakers say to buy a car in the USA. They control the dealership program, so it’s quite easy for the corporate headquarters to slip in a clause in the contracts of dealers located next to the Canadian border forbidding them to sell cars to Canadians. A few weeks ago I read a report about such a situation involving Toyota dealers in northern Washington state (it was either on Autoblog or Jalopnik, I can’t quite remember). It’s another angle that I’m investigating at this time.

13 Pings

  1. Super Car Blog » Blog Archive » Canadian Loonie reaches parity with U.S. dollar, so why are Canadian cars more expensive? September 23 2007 @ 14:13
  2. Autoblog : Canadian Loonie reaches parity with U.S. dollar, so why are Canadian cars more expensive? September 23 2007 @ 14:38
  3. my.IS - Lexus IS Forum - Something the Canadians must surely be angry about... September 23 2007 @ 14:45
  4. eAuto Mall » Canadian Loonie reaches parity with U.S. dollar, so why are Canadian cars more expensive? September 23 2007 @ 14:53
  5. Latest news and reviews about cars » Blog Archive » Canadian Loonie reaches parity with U.S. dollar, so why are Canadian cars more expensive? September 23 2007 @ 15:27
  6. Europe Trucks News » Blog Archive » Canadian Loonie reaches parity with U.S. dollar, so why are Canadian cars more expensive? September 23 2007 @ 15:35
  7. The Canadian Dollar vs. The American Dollar - Gamingforce Interactive Forums September 23 2007 @ 16:45
  8. Canadian Loonie reaches parity with U.S. dollar, so why are Canadian cars more expensive? | Review Cars Blog September 23 2007 @ 19:16
  9. The Clever Shark » Blog Archive » Blog September 25 2007 @ 14:24
  10. Beaton, I hardly knew yee - and Usurper, usurper, usurper!! part 2 » The Daily Blitz September 26 2007 @ 11:33
  11. Canadian Loonie reaches parity with U.S. dollar, so why are Canadian cars more expensive? September 27 2007 @ 12:28
  12. Automotive Blog » Canadian Car Prices File: an experiment September 30 2007 @ 19:47
  13. Car Buying Tips, New & Used Car Sales, Autos Online » Canadian Car Prices File: an experiment December 2 2007 @ 18:51

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