Some vehicles cost more in Canada than the U.S. because of higher tariffs, different safety standards and the dealer’s ability to “charge what the market will bear,” a senate committee studying the Canada-U.S. price gap has concluded.
Canadians also pay more for freight and pre-delivery inspection, said the report called The Canada-U.S. Price Gap.
Thus, a $28,000 Chevrolet Camaro made in Oshawa costs $5,000 less in Hawaii once the differences in the manufacturer’s suggested retail price, along with freight and delivery, are factored in, the report said.
“Canadians are understandably angry when the dollar hits parity with the U.S. dollar and they read that the list price of an automobile in Canada is thousands of dollars more than the same car in the United States,” the report released Wednesday said.
“This anger jumps up a notch when they discover that a car produced in Canada and sold here has a list price thousands of dollars above the price of the same Canadian-assembled car that is shipped to the United States.”
But the study also found that most compact and subcompact cars sold in Canada cost the same or even less than in the U.S. That’s because Canadians buy more small cars than Americans, so there’s strong competition between brands.
That may be small consolation to purchasers of pickup trucks and luxury vehicles, which are generally more expensive in Canada than the U.S., the report said.
The report recommended Ottawa review its policies on import tariffs and safety standards with a view to making Canadian prices more competitive with the U.S.
It also encouraged Canadian consumers to bargain harder with retailers.
Comparing Canada-U.S. auto prices
Luxury cars cost more:
BMW 535i xDrive Sedan
$68,900 in Canada
$49,600 in the U.S.
Trucks cost more:
$24,599 in Canada
$21,280 in the U.S.
Compact cars cost less:
Ford Focus Sedan
$14,900 in Canada
$16,290 in the U.S.
The Canada U.S. Price Gap report