Shopping for a new auto? Have you compared MSRPs on the American sites with equivalent vehicles here in Canada? Well, you're in for a rude shock: we're being overcharged (typically) about $2000 for small cars, about $3000 for standard sedans, and $4000 to $8000 (!!!) for popular SUVs and mini-vans.
(btw, till now GM Canada has been a pleasant exception to this practise - they seem to more-or-less follow a "parity pricing" policy - but with their just-announced price reductions in the US, will they follow suit here in Canada?)
I've written to about a dozen of the involved companies. The responses were similar:
a) Canada and the US are separate markets with separate pricings, and
b) prices are set in each market with an eye to competitive positioning.
One company went so far as to tell me that if I wanted to buy a lower-priced equivalent vehicle in the States, the dealer would run afoul of distribution agreements banning "sales for export" - this despite the fact Canadian law allows the importation of virtually all current vehicles once relatively minor Transport Canada regulations have been met. Not to mention Auto Pact, Free Trade, cross-border-shopping, etc, etc...
These distributors seem to believe that most people haven't even noticed, that most of those who are aware don't care, and that the few who DO care are incapable of changing the situation. Most companies acknowledge other "inquiries" on the same subject, but none even so much as hints at any action. Meanwhile the Canadian dollar continues to rise against the greenback, making the situation worse each day.
In a way, they are right. I have heard nothing from the automotive press, nor the business press, about this situation. The Consumers Association of Canada pays lots of attention to auto insurance, but has so far failed to take up the issue of auto pricing disparities. Our governments get arm-twisted by the auto companies into providing them with hundreds of millions of dollars of "incentives" to maintain manufacturing facilities, but do nothing to respond on behalf of the taxpaying consumers when those same companies then "thank us" by overcharging by thousands of dollars per vehicle.
This situation is untenable and unsustainable, and it surprises me greatly that companies of the size of automotive giants could be so shortsighted (and/or arrogant/greedy) at the Board and Senior Management level that they would allow themselves to be trapped into a situation in which huge amounts of good-will are going to evaporate once the public-at-large discovers that they haven't gotten "such a good deal' on their recently purchased automobile. Don't they see that affordability is a key to increasing sales? Can't they identify home improvements, vacations, electronics, and so on as their true competition for consumer dollars? Don't they understand the value of "fairness" to Canadians"?
So long as Canadian auto consumers remain ignorant and quiet, nothing will change. Surf a few sites and compare a few prices to confirm the reality, then DO SOMETHING. Get onto an automobile distributor's website or two and let 'em know of your disapproval. It's not necessary to get angry - in fact it's generally both impolite and ineffective - but it IS necessary to air your concerns. Ask your local election candidate what their policy is on this matter. Drop an e-mail to the business columnist of your favorite newspaper. Raise this issue in other forums. Ask your local auto dealer what their thoughts are on this disparity, and how it might be affecting their business.
Once the "volume" reaches an embarrassing level, the prices will come into line. I hope it happens soon, cuz I'm shopping, and I certainly couldn't live with myself and "take pride in" my new vehicle if I overpaid as much as the companies currently want me to do.
Enjoy your day,
Cheers,
Don
