We're Suckers in This Country

carThe CBC headline didn't surprise me in the least, but it still pissed me off. "Canadians pay more than Americans for Canadian-made vehicles."

CBC News looked at the relative prices of 24 models made in Ontario by the five big automakers — Ford, GM, Chrysler, Honda and Toyota — and found that in 18 cases, the models cost thousands of dollars more to buy in Ontario than in the United States, including Hawaii.

Based on the manufacturer's suggested retail prices, the two-wheel drive Toyota Rav4 would cost $22,650 in Honolulu, with an additional charge for freight and pre-delivery inspection (PDI) of $810.

A resident in Woodstock, Ont., however, would pay $24,865, plus a freight and PDI charge of $1,465, for the same model, despite the Rav4 being manufactured in Woodstock.

Likewise, a resident in Alliston, Ont., where the Acura MDX is made, would pay $52,690 based on the suggested retail price, while in the U.S. the vehicle's suggested price is $43,030.

That's right, a car made in Alliston, Ontario is almost $10,000 more here than in Buffalo, New York. As far as I'm concerned, there's only one reason they can get away with that.

We're suckers in this country and we'll pay it.


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Comments (21 - click here to join in!)

Cambo

I think the problem is 2 fold.

They charge it, because you'll pay it. Refuse to buy it, and eventually the prices will come down. We put up a big fuss, but at the end of the day, we still pay without a complaint.

Two, a big part of the "problem" lies in the high taxation within Canada. We want our health care, but we don't want to pay the exorbitant costs (taxes) associated with it.

June 14, 2012 @ 9:44 AM

Cambo

...meaning corporate taxes, obviously. Which eventually trickle down to us.

June 14, 2012 @ 9:45 AM


Joe Jackson

Ya, but we have "free" health care!!!

June 14, 2012 @ 10:01 AM

Mississauga Phil

Of course, we could also cut the ridiculous govenment salries, bonus', spending accounts and pensions in order to help pay for the healthcare....but that would just be silly.

June 14, 2012 @ 10:14 AM

Cambo

@Phil

We could do all that, but the health care costs are magnitudes higher than that.

When was the last time you walked into a regular clinic and walked out within an hour?

There's a lot of abuse in it. People think "universal" means "free".

June 14, 2012 @ 10:46 AM

Grumpy Penguin

Your points are excellent, Cambo, especially your very last line, how people equate "universal" with "free".

But I do quibble with one thing you said: if it's the corporate taxes that are responsible for the high prices of these cars, then wouldn't they still be high for US buyers? The cars in question are all being made here, so wouldn't the price to make each car be roughly the same, no matter where it's eventually being sold? And take another look at the "freight" charge for Honolulu vs. Woodstock. That pretty much has nothing to do with anything other than good old fashioned gouging.

Your very first comment is the most salient, in my opinion: they charge it because we pay it.

June 14, 2012 @ 10:55 AM

MrFascination

And this is news?...

We've known about this for years... Ever since the Canadian Dollar (which was the excuse before) has been par - The Harper Government has refused to act on this issue.

June 14, 2012 @ 12:46 PM

Cambo

@Mr.

This problem has nothing to do with the dollar.

It's existed long before Harper was here, and will exist long after he's gone.

Not everything is up to the government to fix.

If you don't want to pay the extra $$$ for a NEW car here, then don't. There are other alternatives- such as decent used. Besides, if you drive a new car off the lot, and tomorrow decide you don't like it- you will not get the full value back. It's the scam that new cars are.

Nice try at a Con jab though.

June 14, 2012 @ 1:23 PM

MrFascination

@Cambo - Read my comment again... I said they used the dollar excuse.. Lower dollar thus thats why the higher cost of cars.

The Government can fix it. How can you justify a car built in Brampton and sold in Brampton has a higher cost than a car built in Brampton but sold in Texas. They have to step in like they do in a lot of industries and have them justify it. But they won't.

What kinda responce is "If you don;t want to pay the extra $$$ for a NEW car here, then don't"...

So let the rip off continue... That's brilliant!!

June 14, 2012 @ 1:33 PM

Mississauga Phil

In case some people haven't realized it yet, our Government doesn't give a crap about us...they aren't going to fix anything. They will continue to line the pockets of their friends and business partners at the expense of the rest of us.

So in this instance, not buying a new car might be the only way to show your displeasure with the price you pay, however, it's much like the people who try to organize boycotts of gas stations....it only works if everyone does it.

I guarantee that if we as Canadians all got together and decided not to buy gas from Petro Canada stations, Petro would drop their prices after 1 day of NO BUSINESS, and the other stations would have to follow suit, the problem is getting everyone on the same page.

June 14, 2012 @ 4:09 PM

MrFascination


Mississauga Phil - Your right on...

But if we want to hurt the gas companies we need to stop buying things they make money on...IE car wash's, coffee, oil, newspapers, etc..

Just buy your gas and leave.

June 14, 2012 @ 4:28 PM

Bob Loblaw

OMG...CAN'T hold back anymore ...Toronto Mike whining about the price of cars...
The body whom TOTALLY FLAUTS HOW HE GETS FREE CARS (ford well..) and FREE leaf tickets...gotta be so proud of that!!!!!!!!!!!!!!
(Some bodies in Toronto have 2 kids a old car and would only imagin being able to get free leaf tickets or Blue Jays to take their kids to...OH sorry I forgot about the flauting about the free Chuckberrys or Iphones...
CANNOT wait for YOUR RUDE reply other than telling me what my IP addy is waiting!!

June 14, 2012 @ 5:53 PM

CQ

The above commenter, @Bob Loblaw, wasn't me ;)

June 14, 2012 @ 6:25 PM

Hoofheartz

Knoblaw, did you ever stop to think that your rant would carry a lot more weight if it was coherent?

June 14, 2012 @ 6:58 PM

Tee

@Bob Loblaw - If your law blog got more hits, then maybe Ford and the Leafs would give you freebies.

June 14, 2012 @ 7:03 PM

Toronto Mike Verified as the defacto Toronto Mike

@Bob Loblaw

I want to tell you to chill out, but I ain't even mad.

Your name makes me think about Arrested Development and that just brings a smile to my face.

June 14, 2012 @ 7:36 PM

Rick C in Oakville

Well I will come from another perspective. Yes the MSRP looks skewed between the USA and Canada, but there are a few different factors. With 350 million plus people, you have far more market to sell out to, reducing your costs.
The dealer is the one who sets the final selling price, out of this he has to pay his staffs portion of Dalton's Health tax, CPP portion, EI contributions, wages are higher in Canada for Techs and service people compared to the USA, alot of Techs making $10 hour fixing your car in the USA. Then he has higher land taxes, pay his admins to charge the HST, then pay his accountants to deduct it out. I'm in the medical supplies business, and the regulations here for Health Canada registering, ensuring the product is made to ISO tech standards, which blocks out many good smaller home grown manufacturers (I call it the ISO Mafia) plus the cost to register each item every year to get your licence, increases the cost of doing business. The stream of paper is endless.
We have many customers look over the internet for pricing and sometimes it is cheaper than what we pay from the distributor in the USA.

June 14, 2012 @ 9:35 PM

MrFascination

@ Rick C - Your arguement is faulted. The population and market size has nothing to do with this.. The cars are produced in Canada and then sold in the States. The production cost is the same (remains unchanged). The Charger build in Brampton but sold in Texas cost Chrysler the same amount of money (actually with transportation costs you could argue it should cost more in Texas then Brampton).

You may have a small point at the dealer cost (IE, benefits, etc) but the difference shouldn;t be thousands of dollars, maybe a couple of hundred if that.

June 15, 2012 @ 10:07 AM

Cambo

The freight and "PDI" charges are the 2 reasons I will never buy a new car again.

1. I can drive down to Alliston, pick up the car and drive it back FAR cheaper than the freight charges they pass on.

2. PDI. Why should I PAY for you to inspect/clean the car that I paid freight on to deliver it here in the first place.

If you think the situation is better in the U.S., think again. The car MAY be cheaper, however they have lots of other costs associated as well. The grass isn't always greener on the other side of the fence.

June 15, 2012 @ 11:37 AM

dave

@Mississauga Phil- I work for the City of Mississauga. When I started in 1980 and saw how much money was taken off my paycheck to go towards my pension "OMERS" I almost quit. Ive paid in to it for 32 years. It's mine and I earned it, and no I am not overpaid. My salary is on par with the private sector. Yes there are people who abuse the system but most earn there money. Don't paint all government employees with one brush.....

June 16, 2012 @ 11:53 AM

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