• Feb 29, 2008
Due to a slumping greenback, the Canadian Loonie and the U.S. dollar are worth roughly the same amount, but the price of most new cars in Canada haven't made the adjustment. Two leasing companies are suing the Canadian government, BMW Canada Inc., Mercedes-Benz Canada Inc. and Mercedes-Benz USA LLC for a cool billion dollars, but not because of the uncompetitive pricing in the United Province.

The leasing companies have filed suit because strict import rules are preventing the companies from buying cars in the U.S. and selling them in Canada. The many fees, procedures and restrictions allegedly resulted in a 20-30 and 35% more than similar US models.

Rather than these two leasing companies, it seems like customers in Canada are the ones who are losing out the most with high vehicle prices. At least the Canadians still have plenty of other cars and trucks that they can import from the U.S.

[Source: Report On Business via Winding Road]


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  • 31 Comments
      • 6 Years Ago
      I don't think the canadians care if the prices are exactly one to one as the us. Like someone said the us does have more people and can afford to lower prices a little.(also has to do with competition purposes). But this class action suit is not a joke and companies are in trouble to try explain why it is so much higher priced in canada. Not a couple of percent but over 20 to 30 percent which is crazy.

      Being canadian myself i feel if a porsche cayman s is say 59 thousand usa priced then a 65 thousand dollar price tag in canada would be fair enough to stop all of this class action crap. A fully loaded sonata is like 22 thousand in the us so it is was 25 at tops in canada that would be fair. Thats about a 9 percent premium above us prices. With such an increase it will stop canadians from boarder car shopping, help car sales in canada and stop this nonsense
      • 6 Years Ago
      Have you seen the disparity in the price of a Porsche...let's look at the Cayman S. Not my first choice but a great example. Canadians pay $75,300 with no options just a plane Cayman S. Our friends down south pay $59,100. Assume absolute parity in the dollars and that is a $16,200 difference.

      Now, look at a GT3 RS it is $155,100 in Canada...in the US $124,900. A difference of $30,200.

      The cars travel on the same boat across the pond they arrive at the same ports, so what is the difference here. The Canadian Government taxes the hell out of German Cars, why?
        • 6 Years Ago
        Taxes on GT3 will be approximately $2,000 higher than these in the US. The rest is call "producer surplus" in economics terms, and overcharge in everyone else's.
      • 6 Years Ago
      Canadians also get seriously ripped-off on destination charges. An Alliston Ontario manufactured Acura MDX carries a $1,855 Canadian destination charge. The destination charge for the same car shipped to the furthest reaches of the U.S. is $715. Other manufacturers are similar. Somehow the fat city civil servants in charge of preventing price collusion never notice.
      • 6 Years Ago
      canuk? You didn't watch Vancouver play the Colorado 'Avalance' the other night, eh?

      the pricing makes no sense. it's as simple as that. automakers seem to be dealing with it on new models, with the price of the second-gen smart fortwo dropping dramatically, for instance. as for current models, you can't expect companies to drastically alter their pricing based purely on currency exchange when even the much-higher-than-it-used-to-be CDN$ still fluctuates. the price of doing business, though? give me a break. When Volvo took notice they took relatively small steps to cure the ill, but at least they did something -> http://www.goodcarbadcar.blogspot.com/ 2007/11/volvos-big-incentives.html
      • 6 Years Ago
      This article is true. As much as i love cars, I hate Canadians because 90% drive crappy cars. I love seeing nice cars on the road, but you can't find any there. They are old imports & tinted. If they are domestic it is a USDM car typically something like a Cavailer, cobalt, or Pontiac XXX You never see one driving a decent car, unless you go to Toronto.
        • 6 Years Ago
        I don't know what streets you have been frequenting, but Regina, Saskatchewan is not representative of the rest of the country. On the west coast I see all sorts of sweet cars. Today on my way to work I saw a couple Audi S5s, an R8, several 911s, Ferraris, a Lotus Exige S, countless Audi A3s and A4s, a late model corvette, a Jaguar E-type, a Ford GT, and numerous BMWs. Sure there were some older vehicles. Please refrain from the gross generalizations it's aboooot time you American used less of a broad brush.
        • 6 Years Ago
        He probably lives in a rural area, I could say the same thing about Gatineau-Ottawa.
        • 6 Years Ago
        Actually Kevin, did you know that Alberta Canada has more Ferraris per capita than ANYWHERE else in North America? There is alot more money in certain places in Canada then Americans think. Its to the point that I dont see any A4's anymore, all I see are S4's for example. My streets are filled with pricey cars that i know for a fact 90% of americans cant afford. The US has a way larger lower class than Canada does. You shouldnt be so ignorant.
      • 6 Years Ago
      iam25boy: Thanks for leaving you traitor. You just made the Canadian population that much smarter. It is quite obvious you have no knowledge of even the simplest economics. What you just said was so wrong and ignorant its really unbelievable you can manage to get dressed in the morning.
      • 6 Years Ago
      The cost of doing business doesn't justify 20-30% These car companies are banking on the 'mellow' nature of Canadians; we aren't as litigious as Americans. As soon as a few more class action lawsuits are initiated, those billion$ lost might help them change their tune.
      • 6 Years Ago
      As an American who lived in Canada for 13 years and returns to a second home in the summer, the US has a great deal to learn from our neighbor to the north.

      I'd so enjoy taking the average American and dropping him/her on one of the main streets of Canada and laugh as they experience the shock of how clean, friendly, modern, safe and developed this nation is.
      If we were to return the favor to the average Canadian, most would want to run back across the border.

      It truly is a joke at how behind Canada is in many significant areas especially banking, wireless internet access (their whole cities are wi-fi), telecommunications, etc. Yeah, I know we American's think we are ahead but a visit to a Canadian city or home will soon reveal we are several years behind in many areas.

        • 6 Years Ago
        Just make sure you don't spend time in Quebec. :D
      • 6 Years Ago
      What is actually pathetic is your limited and generalized perceptions that would allow you to believe that 25 comments in an auto forum would somehow be an actual representation for a continent with 350 million people.
      Reminds me of the time when a Europeon guy came to work in a camp on the Finger Lakes of New York where I was working. We had a two day break and he asked how long it would take to drive to the Grand Canyon. I laughed because the condescending Euroidiots, who were constantly ridiculing American's as Elmer Fudd, were now the morons who thought the Grand Canyon was the next state over. No clue about our continent. I banged his girlfriend, a tasty Italian 20 year old, while he went to Niagara Falls. She never complained at all about me having 'substance'.
        • 6 Years Ago
        He has a point. You know damn well that Americans are generally very pompous and sneer in the direction of Canada. I can't count how many jokes are aimed at Canada. Most people from my country (the USA) view Canada as some kind of 3rd world country with eskimos that is too damned cold, too damned liberal. and has a messed up health care system. The United States has the biggest elitist attitude I know of.
        • 6 Years Ago
        You could have just told him it's the same distance as the drive from London, England to Rome, Italy and back. Somehting I'm sure he's driven.
      • 6 Years Ago
      should read: 'at behind how America is'
        • 6 Years Ago
        iSpec is very insightful. I do remember finding it funny that 95% of the people I knew were on very high speed broadband (even 5+ years ago) while so many Americans still has no access whatsoever to it and were still using dialup. I like visiting the US on vacation (I was in Vegas a week ago) but no offense, even a 25% pay increase wouldn't make me move to the US. I like visiting the country for short periods but when you come back to Canada, you really realize how much better off we are here. I love the comment on how we "suck on US tite" lol. I hope that person realizes that Canada's economy is much more resilient than the American one as we've avoided the '01-'03 recession and will do the same this time around.
      • 6 Years Ago
      Oh, the hostility.

      With the exception of the normal taxes, it's stupid to be forced to pay more (assuming even currency).

      The concept of free healthcare is nice, but it had better be, since I'd probably have a heart attach with a 43% tax rate.
      • 6 Years Ago
      Hey ... but you have free healthcare.
        • 6 Years Ago
        My thoughts exactly, given my financial situation I paid about 43% of my annual earnings in taxes. What % did you get taxed at?
        • 6 Years Ago
        Taxes pay for healthcare.
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