Why are Boxsters more expensive in Canada?

[gblack]

Originally Posted by cartagena

There was an international survey about a month ago that asked people about happiness. South American and Central American countries were all on the top of the list. Canada was well below 100.

I have another survey for you Cartagena, this one from the UN Human Development Index of living standards in various countries.
http://en.wikipedia.org/wiki/UN_Human_Development_Index

But the highlight of it is:
The number one ranked country in each year of the index.

* 2004 – Norway
* 2003 – Norway
* 2002 – Norway
* 2001 – Norway
* 2000 – Canada
* 1999 – Canada
* 1998 – Canada
* 1997 – Canada
* 1996 – Canada
* 1995 – Canada
* 1994 – Canada
* 1993 – Japan
* 1992 – Canada
* 1991 – Japan
* 1990 – Canada
* 1985 – Canada
* 1980 – Switzerland

BTW, Columbia was #69.

Back to the topic at hand!

[donv]

Have you looked at other makes/models to see if this is a consistent trend? If so, then the "communist state" theories may have merit. If not and the feature lists/std equipment are equal on both sides of our friendly border, it is purely Porsche doing market pricing. They are masters of getting the max the market will bear for their products, and seem to have a real knack for positioning models and features to their best benefit to do this. Is the USD/CAD disparity on the base model similar?

Originally Posted by gblack

US MSRP of a Boxster S is $54,600 USD
Canadian MSRP of a Boxster S is $77,900 CAD

At current exchange rates, the US car is only $62K in Canadian Dollars - $15K cheaper.

Why are cars here (in Canada) so much more expensive than in US?

[Brucelee]

If the differential is due to a VAT or the like, I would think that this is pretty clearly marked on the invoice of the car.

If the diff is due to tariffs, that may not be so clear, as it could be bundled into the MSRP.

Either way, I would assume that this is somehow government related, as I can't see how any manufacturer could have the market power to do this. Moreover, the question I have is, if you come down to the US and buy a new Boxster, how much does the government charge you to import it to Canada?

That answer may be THE answer.

Let us know.

[donv]

I looked into doing just this but in reverse (CAN to US) back when Hondas were selling at a premium and in short supply in the US in the 80s - my relatives in Canada were reporting the same model going for no premium/no wait north of the border.

Turns out you can't do it without getting the particular end use country's certification, which the manufacturer does for you when they import (or build domestically) the car. Otherwise, you have to do it through an agent that proves the car meets (or modifies it to meet) gov. specs and this adds $$ over any customs and tax issues. All before you can register the car.

It is this barrier to entry that allows pricing differentials across borders, which the manufacturers can then use to their advantage.

Originally Posted by Brucelee

Moreover, the question I have is, if you come down to the US and buy a new Boxster, how much does the government charge you to import it to Canada?

That answer may be THE answer.

Let us know.

[gblack]

Originally Posted by Brucelee

If the differential is due to a VAT or the like, I would think that this is pretty clearly marked on the invoice of the car.

If the diff is due to tariffs, that may not be so clear, as it could be bundled into the MSRP.

Either way, I would assume that this is somehow government related, as I can't see how any manufacturer could have the market power to do this. Moreover, the question I have is, if you come down to the US and buy a new Boxster, how much does the government charge you to import it to Canada?

That answer may be THE answer.

Let us know.

Now that's a good intelligent answer!

I was thinking it was either some sort of tarrif/tax or the car makers haven't adjusted their prices for strength of the canadian dollar (or the weakness of the US dollar).

Looking at another manufacturer, a BMW M3 MSRP is $74,400 in CDN (65K USD), while the US MSRP is $48,900. So again a big difference.

But I don't think we have that much higher tarrif on european cars than US, so I'm thinking that the difference maybe that car makers haven't adjusted prices based on recent improvements in exchange rates.

In the past 2 years, the Canadian dollar has improved from 0.75$ US to 0.90$ US. But car prices here haven't fallen. So either they're taking a bit of a bath on US sales or they're milking Canadians.

Does anyone have any knowledge or experience how manufacturers set MSRPs when currency's change in value?

Hmm.

[gblack]

Maybe it is forex related afterall.
http://www.naata.org/new files/import1.html

See....he came back!

[airboxster]

Originally Posted by gblack

US MSRP of a Boxster S is $54,600 USD
Canadian MSRP of a Boxster S is $77,900 CAD

At current exchange rates, the US car is only $62K in Canadian Dollars - $15K cheaper.

Why are cars here (in Canada) so much more expensive than in US?

I read a couple of the helpful responses and had to laugh. Porsche is not the only car that is cheaper in the states. It's a fact of life across the board. The car companies do not adjust their prices for exchange rates every month or year. It's more like every 5 years. Just 3 years ago with a 25% exchange rate in favour of the USA it was cheaper to buy any car in Canada. We were shipped any used car we could find state site. This has changed and we now are paying the price. Oh and we have many other things that cost a lot because of our health care system. But oddly enough, in any economy there are those that can buy Porsches and those that can't.

I like reading this forum because you can pretty well say anything that come to mind. If you're looking for good local Porsche info contact your local PCA. I plan on purchasing my next classic Porsche in LA and trucking it back to Canada.

[gblack]

Originally Posted by airboxster

The car companies do not adjust their prices for exchange rates every month or year. It's more like every 5 years. Just 3 years ago with a 25% exchange rate in favour of the USA it was cheaper to buy any car in Canada. We were shipped any used car we could find state site. This has changed and we now are paying the price.

I think you're bang on airboxster.

This is a response from Porsche on the same question:

Hello,
Thank you for your comment. Pricing strategy is a long range proposition and does not fluctuate with the currency markets. At certain times, 2000-2003 for instance, our pricing resulted in a discount of Canadian cars versus U.S. cars. We acknowledge that the current situation we are in now reversed and are looking at the impact this may have on our business. However, there is no immediate plan to adjust Canadian pricing. Should you need further assistance please don’t hesitate to call 1-800-Porsche.

Kind Regards,
The Porsche Response Team

exactly........our used car department at bmw was advertising all over the u.s when the american dollar was strong. we sold cars all over the states, from california to new york city. these customers saved atleast $5000 on $50,000 car purchases when the dollar was in there favour.

but.........you do know that this is with almost every product in the u.s. we buy digital equipment from the states and here in canada the price is about $100 more expensive on a $500 product. we changed all of our suppliers and are now buying products in the states and it has nothing to do with the currency being strong or weak...it does favour us right now but everything is just cheaper to buy in the AMERICA.....

this is all you have over us cartengena.......you should of just said i hate canada because everything is soooo dam expensive.