Canada /US Pricing

[Brian D. Barrett]

Just for fun, I priced the same car with the same options on the US and the Canadian Porsche web sites. The car came in at $89,220.00 Canadian and 63,130.00 US. At the current exchange rate, this translates to $70,350 dollars Canadian.

How can the MSRP differ by nearly $20,000CA on a $90,000 car? I understand with the free trade agreement the US cars can be brought into Canada as long as the headlights are converted to daytime running lights for less than 500.00.

Makes you wonder how much these dealers are really making on the vehicles!

[Westcoaster]

Just for fun, I priced the same car with the same options on the US and the Canadian Porsche web sites. The car came in at $89,220.00 Canadian and 63,130.00 US. At the current exchange rate, this translates to $70,350 dollars Canadian.

How can the MSRP differ by nearly $20,000CA on a $90,000 car? I understand with the free trade agreement the US cars can be brought into Canada as long as the headlights are converted to daytime running lights for less than 500.00.

Makes you wonder how much these dealers are really making on the vehicles!

Hi Brian, last week I was in San Diego and visited a Porsche dealership, man was this depressing, so many cars to choose from and I am from Canada... :(

You see, about a month ago I bought a MY03 with 38,000 km's (Vancouver), in San Diego for a difference of $13,000 CDN I could have bought a MY06 brand new with more options! :eek:

So I did the same thing you just did, went to the website (US and Canada) and built identical cars, a difference of $22,000! In fact the MSRP base price on a Boxster in Canada is over $10,000 more then a Boxster S in the US.

You are right, daytime running lights (add one relay), an inspection by Canadian Tire and last but not least a load of "north of the border taxes" and you should be good to go.

I don't know how you could play it out, but it seems like the up here in Canada we pay an awfull lot more to own a Porsche.

Edited September 27, 2006 by Westcoaster

[stubenhocker]

I think the difference is the import duties Porsche must pay to bring a vehicle into Canada. For sure they must pay HST 7% and depending on the province it could be another 8%.

In the US I believe they pay 2.5%.

[Westcoaster]

I think the difference is the import duties Porsche must pay to bring a vehicle into Canada. For sure they must pay HST 7% and depending on the province it could be another 8%.

In the US I believe they pay 2.5%.

Maybe, maybe not.

HST= harmonized sales tax? If so, this is actually a combination of the provincial sales tax and GST( only in some of the eastern provinces), neither of which the importer or dealer pay only the final buyer.

If we are talking import duty paid by the importer, this is also charged if I were to bring a US sold (german built) car across the border, I believe in the case of Porsche it is about 6%, but this still does not come even close to the differences that Brian or I found when comparing MSRP, this is much higher!

The way I see it there is a little more at work here then taxes or duty.

US car $62,705 US x 14% exchange = $8,800 ($71,505 CDN)

+ 6% duty = $4300 ($75805)

This car in Canada = $87205

Difference = $ 11,400

hmmmmm, I wonder if a local dealer would match this price?, No need to cross border shop then!

Edited September 27, 2006 by Westcoaster

[Brian D. Barrett]

I think the difference is the import duties Porsche must pay to bring a vehicle into Canada. For sure they must pay HST 7% and depending on the province it could be another 8%.

In the US I believe they pay 2.5%.

THe import duties are the same for the theboth countries and I would have to pay the 6% GSTax and teh 10% provincial sales tax on both cars regardless of where they come from. WITH nafta there is NO import duty on new cars!!

Someone is making a lot of money if they can sell the cars for at least 20% less in the US.

[gchu]

I have heard from other fourm that most Canadian Porsche Dealer DO NOT (refuse) service vehicle imported from US.

[Westcoaster]

I have heard from other fourm that most Canadian Porsche Dealer DO NOT (refuse) service vehicle imported from US.

I can only answer for the dealership in my town, they have US origin cars on the lot all the time (with CPO as well), in fact when I was looking they really tried to sell me one of these. So they would be hypocrits if they didn't service a US car, besides, what if you moved from one country to the other?

I'm still with Brian on this one, somebody is making good money on the Canadian cars!

Hey Brian are you sure about the new cars comming in duty free from Germany? I understand paying the provincial and federal sales taxes, my issue is that most of the US states close to me also charge sales tax, which there seems no way to avoid it (9.2% in Wa and 8.25% in Cal).

[gchu]

CDN Porsche Dealer not servicing US Imports?

http://forums.rennlist.com/rennforums/show...ighlight=canada

[Brian D. Barrett]

CDN Porsche Dealer not servicing US Imports?

http://forums.rennlist.com/rennforums/show...ighlight=canada

Did some research - heres the story!!

Transport Canada list all newer porsches and being able to be imported into Canada. There are requierements for daytime running lights but any Canadian Tire stor is authorized by our government to do the work. There a coule of fees at the border ( couple of hunderd dollars) and you have to pay teh GST (6%) opn importation and your provincial sales tax when you register the car. YOU CAN GO TO THE TRANSPORT CANADA web site and it explains how to do all this.

Buying the car - talked to a dealer in New Hampshire- no problem from them as they have done it before! No sales tax in New Hampshire, Oregon, Montana. All vehicles are on the dealer web sites all across the US. He even hinted that they have doen this through Porsche Dealers in Canada!

2001 Turbo Loaded - 79,900 US

Brand new Caymen s for 63,000 US!

WARRANTY IS NORTH AMERICAN so thy have to service the cars!

Edited September 29, 2006 by Brian D. Barrett

[Westcoaster]

CDN Porsche Dealer not servicing US Imports?

http://forums.rennlist.com/rennforums/show...ighlight=canada

Did some research - heres the story!!

Transport Canada list all newer porsches and being able to be imported into Canada. There are requierements for daytime running lights but any Canadian Tire stor is authorized by our government to do the work. There a coule of fees at the border ( couple of hunderd dollars) and you have to pay teh GST (6%) opn importation and your provincial sales tax when you register the car. YOU CAN GO TO THE TRANSPORT CANADA web site and it explains how to do all this.

Buying the car - talked to a dealer in New Hampshire- no problem from them as they have done it before! No sales tax in New Hampshire, Oregon, Montana. All vehicles are on the dealer web sites all across the US. He even hinted that they have doen this through Porsche Dealers in Canada!

2001 Turbo Loaded - 79,900 US

Brand new Caymen s for 63,000 US!

WARRANTY IS NORTH AMERICAN so thy have to service the cars!

thanks Brian, very cool because Oregon is only a couple hours drive south of the border for me! I am going to look at what they have for Boxster S's...

Maybe my next car will come from there!

[stubenhocker]

I think the difference is the import duties Porsche must pay to bring a vehicle into Canada. For sure they must pay HST 7% and depending on the province it could be another 8%.

In the US I believe they pay 2.5%.

THe import duties are the same for the theboth countries and I would have to pay the 6% GSTax and teh 10% provincial sales tax on both cars regardless of where they come from. WITH nafta there is NO import duty on new cars!!

Someone is making a lot of money if they can sell the cars for at least 20% less in the US.

There is no duty on autos that are traded between NAFTA nations, but each country is free to assign tariffs to imports from NON-NAFTA countries, such as Germany. In Canada that is 6.1%, in the US it is 2.5%.

Plus the extra expense of a company having to maintain a separate network and facilities to support their activities within a country the size of Canada, geographically immense, but with a small population base, further increases the costs that must be recovered.

Edited October 5, 2006 by stubenhocker

[stubenhocker]

Also in your maths gentlemen, you must consider that Porsche manufactures their cars priced in EUROS and the exchange rate from euros to Loonies is 1.4312 cdn for each euro, wheras in US rate is 1.2690 USD per Euro, which is an 11% diff...this is of course before the administrative costs of doing business in Canada is factored into the cost of each vehicle.

[Westcoaster]

Also in your maths gentlemen, you must consider that Porsche manufactures their cars priced in EUROS and the exchange rate from euros to Loonies is 1.4312 cdn for each euro, wheras in US rate is 1.2690 USD per Euro, which is an 11% diff...this is of course before the administrative costs of doing business in Canada is factored into the cost of each vehicle.

No need to question the math B) your 11% diiference does that for us!

I built a Boxster on the Porsche US website and then the same car on the Porsche Canadian website, in my example, the US car $62500 US and the CDN car $87750 Cdn... Appears to be much more then 11% !

Sorry, I don't buy in to the cost to "maintain a separate network and facilities to support their activities " as any reason for the immense difference. And what "administrative cost of doing business in Canada"?

Hey, I'm not trying to pick any fights, I just think that we are getting taken, you don't work for a dealer do you? <_<

[stubenhocker]

Also in your maths gentlemen, you must consider that Porsche manufactures their cars priced in EUROS and the exchange rate from euros to Loonies is 1.4312 cdn for each euro, wheras in US rate is 1.2690 USD per Euro, which is an 11% diff...this is of course before the administrative costs of doing business in Canada is factored into the cost of each vehicle.

No need to question the math B) your 11% diiference does that for us!

I built a Boxster on the Porsche US website and then the same car on the Porsche Canadian website, in my example, the US car $62500 US and the CDN car $87750 Cdn... Appears to be much more then 11% !

Sorry, I don't buy in to the cost to "maintain a separate network and facilities to support their activities " as any reason for the immense difference. And what "administrative cost of doing business in Canada"?

Hey, I'm not trying to pick any fights, I just think that we are getting taken, you don't work for a dealer do you? <_<

Well there is no way around the fact that Canada is a seperate profit centre that has to stand on its own financially. With a much smaller market, approx 10% of the US market, costs are spread over a much smaller number of units. THe US has the economy of scale working in its favour. Plus the administrative costs of doing business in Canada is greater than the US, someone has to support the socialist dreamland you have there.

If you want to believe there is some gigantic plot out there to take financial advantage of Canadians, then far be it from me to try to bring some rational points to consider when looking at price differences.

There is no reason to think prices should be the same if operating conditions , government requirements, taxes on business etc are not the same.

Edited October 6, 2006 by stubenhocker