Why are Boxsters more expensive in Canada?

[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!

[gblack]

Originally Posted by bmussatti

See....he came back!

Yeah - I'm not really a dick but on my first question, I was called a communist from a crappy, snow-filled country full of terrorists that pay too much tax for lousy health care. I guess that put me in a bad mood!

Onward and upward

[denverpete]

Originally Posted by gblack

Yeah - I'm not really a dick but on my first question, I was called a communist from a crappy, snow-filled country full of terrorists that pay too much tax for lousy health care. I guess that put me in a bad mood!

Onward and upward

You're from Boulder, Colorado?????

Originally Posted by gblack

Yeah - I'm not really a dick but on my first question, I was called a communist from a crappy, snow-filled country full of terrorists that pay too much tax for lousy health care. I guess that put me in a bad mood!

Onward and upward

gblack, I am glad you're back. You are going to like it around here, I'm sure!

For clarity, none of us Americans called you a "communist". Please be clear. Your fellow x-counrtyman, Cartagena, was the one who called you this name.

I bought my boxster in the states, new york city, manhatten. I live in Canada, i saved about $5000.00. It has nothing to do with the currency, although it does favour us now to buy from the US, because you have not changed prices accordingly(if this makes sense).

But, when i worked at BMW, we would sell used BMW's to the customers all over the US. At that time the American dollar was strong and the US customers were saving about $5000, on $50,000 car purchases. It is a grey market, you really are not aloud to export/import cars. I know for a fact that BMW Canada will not let an owner sell the car within the first year to the states. So you have to wait until the car is one year old before selling it in the states. Our dealership had been fined because a customer sold his BMW in the states. We also had a big problem with the russian mob buying X5 trucks, and shipping them to russia, and turning them over for double the price. Our dealership would get fined by BMW Canada, although it wasnt our fault that they would ship them, we didn't have any control.

Aparrently under the nafta aggreement, import/export of cars, America pays lower taxes and tariffs. N Canadians don't have an aggreement, and we pay higher prices for cars. so for some reason canadians don't have an agreement with germany/europe under the nafta agreement, when it comes to automobiles, which i don't understant, and am looking into. if anyone knows exactly the deal, inform us, or i am looking into it, and trying to find more information in regards to this ordeal.

our local toronto star, has posted many articles about cross boarder car shopping, they usually compare the porsche 911 for some reason to show the savings. i don't think that i'll ever buy another car here in canada, it just doesnt make sense.

The best part gblack was that he is originally from Canada.......and he for some reason has become American or South American, i can't figure it out. He should hate the goverment not the people. The same way we Canadians hate the American goverment but never ever the people. Or as much as i hate our goverment, but love the people.

seeeeu


Quote:


"See....he came back! "

Originally Posted by bmussatti


Yeah - I'm not really a dick but on my first question, I was called a communist from a crappy, snow-filled country full of terrorists that pay too much tax for lousy health care. I guess that put me in a bad mood!

Onward and upward