Canadian Loonie reaches parity with U.S. dollar, so why are Canadian cars more expens

[Bartek S]

Canadian Loonie reaches parity with U.S. dollar, so why are Canadian cars more expensive?

Due to the dollar's dip, one American greenback is worth the equivalent Canadian Loonie. At least, it's worth the same at the exchange window. However, it is not worth anywhere near the same amount at Canadian car dealerships, and at least one Canadian wants to know why.
Even though the two currencies are at parity, the difference in the prices of various cars ranges from $7,000 to $10,000. An Audi A4 Quattro with the turbo 2.0-liter is $32,000 in the US, but it'll set you back more than $40,000 in Canada. A $25,095 Taurus here will run you $33,399 in Canada. The discrepancy when it comes to Volvo is highest, with a 38-percent markup that equates to an $11,000 premium if you buy in Canada.
With those kinds of numbers, it's no surprise that Canadians are going south of the border to find a set of wheels. The blogger, Clever Shark, has written to automakers to find out why the land of the maple leaf has to pay so much, but he's not holding his breath for answers.

[LeMansX5]

Canadian, U.S. manufacturers to face $2B class action over sales practices

http://www.xoutpost.com/lounge/37611-...ar-prices.html

[Eric5273]

My friend who lives in Canada complains about this all the time. But then he tells me how he pays $600/month to live in a 2-bedroom condo in a luxury highrise apartment building and gets free healthcare. Give me those things, and I won't mind paying 20% extra for my vehicle.

[LeMansX5]

Originally Posted by Eric5273

My friend who lives in Canada complains about this all the time. But then he tells me how he pays $600/month to live in a 2-bedroom condo in a luxury highrise apartment building and gets free healthcare. Give me those things, and I won't mind paying 20% extra for my vehicle.

I am sure his salary his taxed at much higher rate than it is for US residents.

[Eric5273]

Originally Posted by LeMansX5

I am sure his salary his taxed at much higher rate than it is for US residents.

No, it's about the same:

http://www.cra-arc.gc.ca/tax/individ...axrates-e.html

http://www.infoplease.com/ipa/A0106989.html


But in his case, I don't think it would matter. He and his wife are both in the medical field, and they both make much more money up in Canada than they did when they lived in NY. His wife is originally from Canada, which is why they moved up there. Wages are much higher there, and cost of living is much lower. A regular middle class family can actually live comfortably up there on a single income.

[xxx]

$600/month doesn't sound right, health care however is great. Where does he live?

[LeMansX5]

Originally Posted by Eric5273

No, it's about the same:

http://www.cra-arc.gc.ca/tax/individ...axrates-e.html

http://www.infoplease.com/ipa/A0106989.html


But in his case, I don't think it would matter. He and his wife are both in the medical field, and they both make much more money up in Canada than they did when they lived in NY. His wife is originally from Canada, which is why they moved up there. Wages are much higher there, and cost of living is much lower. A regular middle class family can actually live comfortably up there on a single income.

Which is why they say average canadian is much happier than their US counterpart.

[Eric5273]

Originally Posted by xxx

$600/month doesn't sound right, health care however is great. Where does he live?

He lives in Kingston, which is a couple of hours east of Toronto.

[X5HogTown]

Kingston, no wonder. That condo would probably be 1200 to 1500 (or more) in Toronto.

As far as the car prices go, the manufacturers are gouging and restricting cross border trade. The sheep on the street are starting to understand this. Porsche has just dropped their prices (albeit not enough). Others will follow soon as the pressure builds.

[dkl]

Supply and demand, my friend. That's just simple economics. If the manufactures can charge whatever they want and still able to sell their cars, why not? Wouldn't you do the same if you have something to sell? Would you voluntarily sell something for less when you know you can get more for it?