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Wide Price Difference

Does any know how if there is a reason for this...The suggested price for the RSX-S in the States is listed at $23 845US before freight tax, etc. This equals $27 117 Canadian.

If you go to the Canadian acura website, the price is listed at $33 400 before taxes etc...Which equals $29 390US... Why would the exact same car cost so much more to buy in Canada? You can't tell me it costs acura an extra $7 000 to ship the car into Canada...

Anyone have any idea on what the reason is?

Reply to
James
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Probably the same reason that Yamaha accessories are 35% more expensive in Canada. I'm curious to see what folks have to say on the subject.

Reply to
Venture Rider

It's called market pricing. It's been going on since the year dot.

Basically, you charge what the local market will bear. The explanation for it is included in the economics 101 course.

Reply to
Dean Dark

The tariff on cars from outside North America

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if still in effect, accounts for about a third of the increase. This article is from 1998, so it may no longer be valid. Mike

Reply to
Michael Pardee

I've heard that the prices are fixed at a certain exchange rate, and don't vary after this. Three years ago, when the Canadian dollar was at 63 cents US, it was cheaper to get the car in Canada. Now that the Canadian dollar has gone up, it's cheaper to get the car in the US. According to the prices you stated, the exchange rate Acura is using is 71 cents US for a Canadian dollar, which isn't quite fair at this time.

Is the car built in Japan ? This could be another factor (importing duties in Canada could be higher, etc.).

Reply to
Whitey

"James" wrote in news:Q973g.3077$FY1.161@clgrps12:

Some possibilities:

  • The RSX-S may be selling better in Canada at the moment, or Honda is trying to give Canadian dealers room to move so it appears to clients that they are getting a "deal" when they get a lower-than-MSRP price. MSRP has nothing to do with the price dealers pay for their vehicles. It's a fictional price for your eyes to look at.

  • There is a difference in import duty between the countries, with Canada's being about four times higher;

  • The raw cost of regulatory compliance with Canadian law is basically the same as compliance with US law, but must be amortized over a much smaller sales base. This cost adds several thousand to the price of a car;

  • Certain items (like the bumpers) are unique to Canada, so have tiny production runs and resulting high prices. For example, Canada is the only country in the world that requires 5mph bumper protection;

  • Hidden taxes, such as payroll taxes and Workmen's Comp, are much higher in Canada than in the US.

Somebody has to pay for all that.

Reply to
TeGGeR®

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