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  #1 (permalink)  
Old 24 Apr 2006, 11:38 am
James
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Default Wide Price Difference

Does any know how if there is a reason for this...The suggested price for
the RSX-S in the States is listed at $23 845US before freight tax, etc.
This equals $27 117 Canadian.

If you go to the Canadian acura website, the price is listed at $33 400
before taxes etc...Which equals $29 390US...
Why would the exact same car cost so much more to buy in Canada? You can't
tell me it costs acura an extra $7 000 to ship the car into Canada...


Anyone have any idea on what the reason is?




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  #2 (permalink)  
Old 24 Apr 2006, 03:50 pm
Venture Rider
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Default Re: Wide Price Difference

On Mon, 24 Apr 2006 16:38:08 GMT, James said:

>Does any know how if there is a reason for this...The suggested price for
>the RSX-S in the States is listed at $23 845US before freight tax, etc.
>This equals $27 117 Canadian.
>
>If you go to the Canadian acura website, the price is listed at $33 400
>before taxes etc...Which equals $29 390US...
>Why would the exact same car cost so much more to buy in Canada? You can't
>tell me it costs acura an extra $7 000 to ship the car into Canada...
>
>
>Anyone have any idea on what the reason is?
>


Probably the same reason that Yamaha accessories are 35% more
expensive in Canada. I'm curious to see what folks have to say on the
subject.

--
"I refuse to answer that question on the grounds
that I don't know the answer."
- Douglas Adams
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  #3 (permalink)  
Old 24 Apr 2006, 05:10 pm
Dean Dark
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Default Re: Wide Price Difference

On Mon, 24 Apr 2006 16:38:08 GMT, "James" <Private@email.com> wrote:

>on international price differences<


>Anyone have any idea on what the reason is?


It's called market pricing. It's been going on since the year dot.

Basically, you charge what the local market will bear. The
explanation for it is included in the economics 101 course.
--
Dan.
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  #4 (permalink)  
Old 24 Apr 2006, 07:36 pm
Michael Pardee
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Default Re: Wide Price Difference

"James" <Private@email.com> wrote in message
news:Q973g.3077$FY1.161@clgrps12...
> Does any know how if there is a reason for this...The suggested price for
> the RSX-S in the States is listed at $23 845US before freight tax, etc.
> This equals $27 117 Canadian.
>
> If you go to the Canadian acura website, the price is listed at $33 400
> before taxes etc...Which equals $29 390US...
> Why would the exact same car cost so much more to buy in Canada? You
> can't tell me it costs acura an extra $7 000 to ship the car into
> Canada...
>
>
> Anyone have any idea on what the reason is?
>
>
>
>

The tariff on cars from outside North America (http://tinyurl.com/rus3q), if
still in effect, accounts for about a third of the increase. This article is
from 1998, so it may no longer be valid.

Mike


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  #5 (permalink)  
Old 24 Apr 2006, 07:47 pm
Whitey
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Default Re: Wide Price Difference

I've heard that the prices are fixed at a certain exchange rate, and don't
vary after this.
Three years ago, when the Canadian dollar was at 63 cents US, it was cheaper
to get the car in Canada. Now that the Canadian dollar has gone up, it's
cheaper to get the car in the US.
According to the prices you stated, the exchange rate Acura is using is 71
cents US for a Canadian dollar, which isn't quite fair at this time.

Is the car built in Japan ? This could be another factor (importing duties
in Canada could be higher, etc.).


"James" <Private@email.com> wrote in message
news:Q973g.3077$FY1.161@clgrps12...
> Does any know how if there is a reason for this...The suggested price for
> the RSX-S in the States is listed at $23 845US before freight tax, etc.
> This equals $27 117 Canadian.
>
> If you go to the Canadian acura website, the price is listed at $33 400
> before taxes etc...Which equals $29 390US...
> Why would the exact same car cost so much more to buy in Canada? You
> can't tell me it costs acura an extra $7 000 to ship the car into
> Canada...
>
>
> Anyone have any idea on what the reason is?
>
>
>
>



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  #6 (permalink)  
Old 24 Apr 2006, 08:40 pm
TeGGeR®
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Posts: n/a
Default Re: Wide Price Difference

"James" <Private@email.com> wrote in news:Q973g.3077$FY1.161@clgrps12:

> Does any know how if there is a reason for this...The suggested price
> for the RSX-S in the States is listed at $23 845US before freight tax,
> etc. This equals $27 117 Canadian.
>
> If you go to the Canadian acura website, the price is listed at $33
> 400 before taxes etc...Which equals $29 390US...
> Why would the exact same car cost so much more to buy in Canada? You
> can't tell me it costs acura an extra $7 000 to ship the car into
> Canada...
>
>
> Anyone have any idea on what the reason is?
>
>
>
>



Some possibilities:

* The RSX-S may be selling better in Canada at the moment, or Honda is
trying to give Canadian dealers room to move so it appears to clients that
they are getting a "deal" when they get a lower-than-MSRP price. MSRP has
nothing to do with the price dealers pay for their vehicles. It's a
fictional price for your eyes to look at.

* There is a difference in import duty between the countries, with Canada's
being about four times higher;

* The raw cost of regulatory compliance with Canadian law is basically the
same as compliance with US law, but must be amortized over a much smaller
sales base. This cost adds several thousand to the price of a car;

* Certain items (like the bumpers) are unique to Canada, so have tiny
production runs and resulting high prices. For example, Canada is the only
country in the world that requires 5mph bumper protection;

* Hidden taxes, such as payroll taxes and Workmen's Comp, are much higher
in Canada than in the US.

Somebody has to pay for all that.


--
TeGGeR®

The Unofficial Honda/Acura FAQ
www.tegger.com/hondafaq/
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