Most people know that Canadians, on average, pay more for their cars than Americans do. Surely, right? After all, some of the biggest car companies in the world are based in the USA. The price difference between American and Canadian cars must be because of how much it costs to ship all those cars from the US to Canada, right?
No, not really. The North American free trade agreement says that any car made in North America can be brought into or taken out of any North American country without having to pay any taxes or fees.
In the past few years, Canadians have brought in more cars from the U.S. than ever before. Even though the exchange rate between the Canadian dollar and the American dollar hasn't been this good for Canadians in a long time, there are many other reasons why Canadians are going south of the border to buy their next car.
When the prices of new cars in the United States and Canada were recently compared, it was found that Canadians pay almost 20% more for their new cars than Americans do. That means that on average, most Canadians pay between $5,000 and $6,000 more than their southern neighbours.
Car companies say that their prices are fair because they are making up for money they lost in the Canadian market or because that is what consumers have come to expect. Seems like a good idea. Companies should be able to set their prices at a competitive level, no matter what that means. So, will Canadians always have to pay a lot for new cars?
"Canadian consumers have to pay whatever the car companies tell them to pay," says Kyle Jackson, who runs the website ImportCarToCanada!, which helps Canadians who want to bring a car from the U.S. into their country. "They think they don't have a choice. Rich car companies are taking advantage of and bullying a lot of Canadians, and the worst part is that most Canadians don't even know it!"
ImportCartoCanada! helps Canadians with almost every part of bringing cars from the United States into Canada. There are step-by-step instructions, money-saving tips, and even a community of other Canadians who talk about their own experiences importing vehicles.
"Why should a Canadian pay $52,000 for a brand-new BMW 331i when he could drive across the border and buy the same car for almost $12,000 less?" asks Jackson. "I wanted to make a site where Canadians could quickly see that they don't have to pay all the high prices they see on cars. They just need to do a little research."
Canadians may find all the information they need on Mr. Jackson's site about importing cars from the U.S. to save money, but what about car prices in Canada? Will they always be this high? "Just like any other market, it will take time for the Canadian car market to change. These things do change, but not all at once."
Until the market changes, Canadians will pay more for cars than Americans. If they want to save money, they can do what many other people do and go to an American dealership.
