Wednesday, June 13, 2012

Many cars made in Canada much cheaper in the U.S.

CBC news looked at prices of 24 new car models made in Canada. The study examined models made by: Ford, GM, Chrysler, Honda and Toyota. In 18 of the 24 the cost in Canada was thousands of dollars more than in the U.S.

Some models are even quite a bit cheaper in Hawaii. The Toyota Rav4 would cost 22,650 according to the manufacturers suggested retail price in Hawaii but there is an additional 810 dollars for freight and inspection. The cars are made in Woodstock Ontario Canada. To buy the car there would cost you 24,865 plus, get this, an additional freight and inspection charge of 1465 for exactly the same model!

Not all Canadian prices are higher. For some cheaper models they are about the same or lower. For example Toyota Corolla and Honda Civic are not more expensive here.

The Canadian Senate Finance Committee asked representatives of the Big Three auto manufacturers to appear before a committee to explain this strange pricing but they declined.

One might think that Canadians would be flocking to the U.S. to buy new cars but this apparently is not happening. Consumer advocate Rob Lamb says that most U.S.dealers will not sell to Canadians. Lamb says:"If you're a U.S. dealer you're not going to sell a brand-new car to a Canadian and that's it, and if you do you'll lose your licence, you'll be penalized. So dealers across the states are not selling new cars to Canadians," So much for free trade.For much more see this CBC article.

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