A Money Coach in Canada

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cdn-penny.jpgWith our dollar at par, many Canadians can’t help but notice how much less expensive it would be to purchase a car in the US these days. And with NAFTA an all that, this would be an option of us, you’ think. Here’s Judy’s experience:

So you’re a Canadian and want to buy a Toyota? Excellent choice. Great car.

But oops! The price. About $10K more than the identical vehicle in the United States

Well, how ’bout buying one in the US and having a bit of a vacation during the three days it takes to get a US export permit?

Canada Customs is very helpful, providing a pamphlet called, “How to import a car from the U.S.” And all they will ding you for is the gst. No duty.

Then comes the brick wall. Whammo! That friendly American salesperson you were negotiating with sadly informs you that he is not allowed to sell to you.

“What? Who, me? Am I such a pariah?” Yes, you are. Because you’re Canadian, that’s why.

Canadian Toyotas are still priced as though the Canadian dollar were still around 63¢ US. That accounts for the 30% difference. Somebody in Toyota must be getting very rich selling in Canada.

An irritation, though, is that stream of Canadians going to buy Toyotas in the US – what a hew and cry from Canadian dealers! The remedy? Forbid US Toyota dealers to sell to us Canucks. Disregard the discrimination. Disregard the Canada – US Free Trade Agreement. Protect the obscene profits made by Toyota in Canada.

Editors note to Judy: you’re not alone in your disgust! CBC did 2 features – one on the general question: when will consumer goods start being evenly priced in Canada? And another specifically on the car issue – apparently a class action lawsuit alleging conspiracy is being taken against four car companies and the canadian auto association.

Readers: what are you thoughts on this? Are the higher prices in Canada justified, or is it a complete rip-off?

About the Author


Imagine if Canadians were known for being all over their money. Engaged. Proactive. Getting out of debt. Savvy. Saving. Generous. Nancy wants to help. Nancy started her own journey with money over 15 years ago, and formed her company “Your Money by Design” in 2004 to help others along the same path. It’s not the usual financial advising/investment stuff. It’s about taking control of day-to-day finances –managing monthly cashflow effectively, spending appropriately, getting out of debt, saving. If you're ready to take control over your finances, pop by her business site, YourMoneybyDesign.com

3 Comments

  1. Well, when you live in a rich country next to a poor country, something’s gotta give. We can’t hand over all of our business to shops in Mexico USA with their cheap labor, cheap US Peso, etc.

    [Reply]

    Sep 27, 2007
  2. I’m curious to know if there is less demand in Canada thus higher costs…

    [Reply]

    Sep 27, 2007

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