Truemors
Do you Canadians remember this time last year? Our dollar was flying high, and our people were demanding that cards, books, etc. be priced the same as in the US. And new cars .... many Canadians drove south to get a better bargain. Not so anymore, new car sales are actually up 1.4 percent.
Last year at this time, the loonie was flying high against the American greenback. That was good for anyone travelling to the U.S., but it also had many Canadians bemoaning new car pricing in Canada.
They complained of price gouging and demanded that auto makers lower their prices to match U.S. pricing on a strict exchange basis - one Canadian dollar for one U.S. dollar.
When that didn't happen right away, frustrated buyers by the tens of thousands went south in search of bargains. In fact, more than 160,000 Canadians imported a car from the U.S. last year.
Canadian manufacturers, though reluctant to cut prices quickly to match currency fluctuations, finally did react. They had to. The pressure was tremendous.
Hammered by bad publicity and seeing so many consumers import vehicles from the United States, auto manufacturers either lowered new car prices or slapped on generous incentives designed to level the pricing playing field between Canada and the U.S.
But since peaking at about $1.10 to the U.S. greenback, the loonie has swooned; it is now trading at about $.81 US. That's a 26 per cent drop in one year.
New car prices have not gone up 26 per cent in Canada, but many analysts are predicting price increases very soon. Among other things, the threat of cross-border shopping no longer exists as a force, as a counterweight, in pricing. According to the Consumers Association of Canada, cross-border shopping has come to a screeching halt.
"We've already seen a sharp decrease in Canadians shopping for new car bargains in the U.S.", adds Paul Timoteo, president of the online pricing service www.carcostcanada.com. "Last year at this time, we were flooded with inquiries from Canadians looking for U.S. new car bargains. Not anymore."
Here's a list of Canada's top 10 best selling cars - loonie versus greenback, compiled by Jeremy Cato, Autos.CTV.ca :
1. 2009 Toyota Corolla LE (four-door compact sedan) with equivalent option content.
US MSPR (manufacturer's suggested retail price): $18,604.00
Exchange rate premium (with loonie at $.81 US): $4,377.85
Canadian dollar price equivalent: $22,981.85
Canadian MSRP: $21,540.00
Canadian pricing advantage: $1,441.85
(Note: No available Canadian and U.S. incentives)
2. 2009 Honda Civic DX-A (four-door compact sedan) with equivalent option content.
US MSPR (manufacturer's suggested retail price): $17,625.00
Exchange rate premium (with loonie at $.81 US): $4,406.25
Canadian dollar price equivalent: $22,031.25
Canadian MSRP: $20,900.00
Canadian pricing advantage: $1,131.25
3. 2009 Mazda3 GX (four-door compact sedan) with air conditioning and other equivalent options.
US MSPR (manufacturer's suggested retail price): $17,140.00
Exchange rate premium (with loonie at $.81 US): $4,285.00
Canadian dollar price equivalent: $21,425.00
Canadian MSRP: $18,390.00
Canadian pricing advantage: $3,035.00
4. 2009 Chevrolet Cobalt LT (four-door compact sedan) with equivalent options.
US MSPR (manufacturer's suggested retail price): $17,705.00
Exchange rate premium (with loonie at $.81 US): $4,163.53
Canadian dollar price equivalent: $21,868.53
Canadian MSRP: $19,420.00
Canadian pricing advantage: $2,448.53
5. 2009 Toyota Yaris (base model, four-door subcompact sedan) with equivalent options.
US MSPR (manufacturer's suggested retail price): $13,895.00
Exchange rate premium (with loonie at $.81 US): $3,273.17
Canadian dollar price equivalent: $17,168.17
Canadian MSRP: $15,165.00
Canadian pricing advantage: $2,003.17
6. 2009 Toyota Matrix XR (four-door compact hatchback) with equivalent options.
US MSPR (manufacturer's suggested retail price): $18,865.00
Exchange rate premium (with loonie at $.81 US): $4,434.92
Canadian dollar price equivalent: $23,299.92
Canadian MSRP: $20,720.00
Canadian pricing advantage: $2,579.92
7. 2009 Hyundai Accent GLS (four-door subcompact sedan) with equivalent options.
US MSPR (manufacturer's suggested retail price): $14,990.00
Exchange rate premium (with loonie at $.81 US): $3,546.76
Canadian dollar price equivalent: $18,536.76
Canadian MSRP: $17,090.00
Canadian pricing advantage: $1,446.76
8. 2009 Pontiac G5 (base two-door compact coupe) with equivalent options.
US MSPR (manufacturer's suggested retail price): $16,335.00
Exchange rate premium (with loonie at $.81 US): $3,869.87
Canadian dollar price equivalent: $20,204.87
Canadian MSRP: $16,970.00
Canadian pricing advantage: $3,234.87
9. 2009 Volkswagen Jetta S (US)/Comfortline (Canada) (four-door compact sedan) with
equivalent options.
US MSPR (manufacturer's suggested retail price): $17,640.00
Exchange rate premium (with loonie at $.81 US): $4,164.21
Canadian dollar price equivalent: $21,804.21
Canadian MSRP: $23,310.00
Canadian pricing advantage: -$1,505.79
10. 2009 Ford Focus SE (four-door compact sedan) with equivalent options.
US MSPR (manufacturer's suggested retail price): $16,875.00
Exchange rate premium (with loonie at $.81 US): $3,987.38
Canadian dollar price equivalent: $20,862.38
Canadian MSRP: $17,699.00
Canadian pricing advantage: $3,163.38
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