Automakers Have not Adjusted Car Prices
Automakers have not adjusted car prices to reflect the strong Canadian dollar and the typical new vehicle now costs 17 % more in Canada than in the U.S.
This difference, averaging $5,842 in Canadian-dollar terms, reverses a Canadian advantage of $3,167 in 1999.
The survey released yesterday is based on listed manufacturers' suggested retail prices (MSRP - not actual transaction prices).
Analyst Dennis DesRosiers noted that the exchange rate -- with the Canadian dollar near 90 cents US, up from about 67 cents in 1999 -- has enabled automakers to be aggressive with Canadian incentives.
It appears that, to date, automakers have not adjusted their MSRPs to reflect our dollar's newfound strength, and Canadian vehicle buyers have not reaped the benefits resultant from a strong currency.
This difference, averaging $5,842 in Canadian-dollar terms, reverses a Canadian advantage of $3,167 in 1999.
The survey released yesterday is based on listed manufacturers' suggested retail prices (MSRP - not actual transaction prices).
Analyst Dennis DesRosiers noted that the exchange rate -- with the Canadian dollar near 90 cents US, up from about 67 cents in 1999 -- has enabled automakers to be aggressive with Canadian incentives.
It appears that, to date, automakers have not adjusted their MSRPs to reflect our dollar's newfound strength, and Canadian vehicle buyers have not reaped the benefits resultant from a strong currency.
posted by Ottawa Gas Prices | 8:01 AM
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