Canadian issue
- Thread starter Joe Frito
- Start date
That's not exactly what I'm saying. I'm not suggesting that anyone buy an inferior product or not buy the particular product that they want. I'm just suggesting that I try to support the Canadian or local distributor if I can.
I picked the CX-7 over the Edge because I like the way it drives more and the styling. It's also my opinion that it has superior quality and fit-n-finish. Probably the same reasons you're considering a CX-9 instead of a GM Acadia.
I bought my plasma tv locally. Yes, its Japanese as well, but it's the one I wanted, but I did support the local tv shop.
Just out of curiousity, did you buy your GT500 in the US because it was cheaper or because you couldn't get one here?
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it's about supporting the 1000's of Canadian's working at dealerships across Canada who pay taxes here and support out economy.
I can admire that, unfortunately those same canadian dealers/distributors like to keep supplies purposely low so that they can charge higher prices (was told this by Toyota salesman). It's the reason why you don't get canadian invoice prices for free in Canada, and why Canadians think they get such a super deal when they can get $500 off MSRP (when americans know that invoice was probably $3k cheaper than MSRP).
The fact that there were such severe price drops in Canada just goes to show you that prices were inflated to begin with. So yes, you were supporting Jean-Guy Poutine working at the dealership, but Jean-Guy also knew you were a sucker paying those high prices. But if you don't mind that, then it's all good.
I can admire that, unfortunately those same canadian dealers/distributors like to keep supplies purposely low so that they can charge higher prices (was told this by Toyota salesman). It's the reason why you don't get canadian invoice prices for free in Canada, and why Canadians think they get such a super deal when they can get $500 off MSRP (when americans know that invoice was probably $3k cheaper than MSRP).
The fact that there were such severe price drops in Canada just goes to show you that prices were inflated to begin with. So yes, you were supporting Jean-Guy Poutine working at the dealership, but Jean-Guy also knew you were a sucker paying those high prices. But if you don't mind that, then it's all good.
The dealers don't control the supply. Mazda Canada negotiates with Mazda Japan for the quantity of vehicles. You'll have to excuse me if I LOL!! that what a Toyota salesman told you about Mazda means anything. US dealers get paid higher "kickbacks" which is why they sell cars for invoice or less. Canadian dealers actually need to make some profit at the point of sale. Salesman in these parts get paid on point of sale profit, if they had to sell cars at invoice they would all quit. Profit is not a bad word. I expect to get paid very well for my services don't you? Why should a "good" car salesman be any different? Also the salesmen I deal with are excellent, I don't put up with any of the crap that some report on the forums. My car buying experiences are always great.
So again, I make a good living here, it's only fair that other competent people make a good living as well. For some reason it's socially acceptable for people to expect car dealers/salesman to not make any money. They're not all scumbags, just most of them.
As far as the dropping prices and improved incentives, most of that is because of the 25% increase in the Canadian dollar, not excesive profit.
Moreover, pricing is generally set according to the market value i.e. vs. how much other makes/models command and not "cost plus". If a car is lousy and stays longer on the showroom floor, you could get a better deal than with a hot selling item. Knowing how much the dealer earns in profit is certainly valuable info for negotiating but this does not guarantee a better deal.
So the pricing spread between the US and Canada is certainly annoying, but largely irrelevant. Canada is a different market than the States, and I'm sure pricing across Canada for the same car may vary quite a bit as well.
And yes, dealers must generate enough profits to stay in business, if not we would all have to buy the cars through eBay (which is certainly doable but no test drives and no service!).
That being said, shop as you please. It's your money, after all. You place it where you think it's best.
B.
So the pricing spread between the US and Canada is certainly annoying, but largely irrelevant. Canada is a different market than the States, and I'm sure pricing across Canada for the same car may vary quite a bit as well.
And yes, dealers must generate enough profits to stay in business, if not we would all have to buy the cars through eBay (which is certainly doable but no test drives and no service!).
That being said, shop as you please. It's your money, after all. You place it where you think it's best.
B.
MSRP on a fully loaded GT500 in Canada is $55,000, and up until about 2 months ago most dealers were still asking MSRP plus $10,000. Most dealers are sold out of '08's and with the short '09 production, Canada may not even get any. I bought my car from a small town dealer in South Dakota for US sticker, which was $45,500 and knowing I was going to buy one I converted Canadian funds into a US account when the $ was still $1.03 US. I know it won't be the same, but if I can't find a dealer to sell me a CX-9, I will buy a Lincoln MKX from the dealer I bought my car from. With cash back deals right now, one of those with every available option can be bought in the US for $38,000.
Profit is not a bad word. I expect to get paid very well for my services don't you?
In a competitive market, I expect to get paid less for my services if customers can find competitors that sell the same services cheaper. That's the way the ball rolls. To offset that, I try to offer a better product that can't be copied so easily. So in that same breath, if a canadian can find the same car cheaper in the US, I don't have a problem whatsoever if he goes and buys it there. To be more competitive, dealers in canada should then lower their prices--which is exactly what they have done. It doesn't mean the salesman will make less money--in fact, he should be selling more cars at lower prices. I don't see why you have a problem with that.
The way to offset that would be for Canada to actually start manufacturing a canadian car brand that really kicks butt and charge more for it, but since Canada no longer really invents and manufactures anything (except for Bombardier), that's not going to happen.
In a competitive market, I expect to get paid less for my services if customers can find competitors that sell the same services cheaper. That's the way the ball rolls. To offset that, I try to offer a better product that can't be copied so easily. So in that same breath, if a canadian can find the same car cheaper in the US, I don't have a problem whatsoever if he goes and buys it there. To be more competitive, dealers in canada should then lower their prices--which is exactly what they have done. It doesn't mean the salesman will make less money--in fact, he should be selling more cars at lower prices. I don't see why you have a problem with that.
The way to offset that would be for Canada to actually start manufacturing a canadian car brand that really kicks butt and charge more for it, but since Canada no longer really invents and manufactures anything (except for Bombardier), that's not going to happen.
It's actually funny that you bring up Bombardier. It is the exact same situation with their snowmobiles and watercraft. They are manufactured in Canada by a CANADIAN company, and we are charged siginificantly more here than customers in the US.
EtoileBrilliant
Member
I maybe completely wrong, but didn't your finance minister Jim Flaherty deliver a speech to Canadians sometime last fall when the greenback was in freefall.
The main thrust was "don't complain about the lack of competiveness now the Can Dollar is strong, lower your damn prices and become more competiitive"
The main thrust was "don't complain about the lack of competiveness now the Can Dollar is strong, lower your damn prices and become more competiitive"
