Strong Canadian Dollar Leads to Price Reduction...
#11
Re: Strong Canadian Dollar Leads to Price Reduction...
My point was that Audi has no excuse for not lowering their prices. They are already 20-25% greater in Canada than in the US (easy to calculate now that the dollar is at par). The Canadian dollar has appreciated greatly against the Euro, even more so that the US dollar.
If Porsche can make such a bold move, so can Audi.
If Porsche can make such a bold move, so can Audi.
*i won't hold my breath*
Audi lowered prices about 2 years ago once the dollar hit parity for an extended period. Porsche didn't, and instead was giving huge discounts/rebates because they were not comfortable lowering prices, only to have to raise them if the C$ weakened. They were right for a while...through the economic crisis, the C$ fell to high 80 US cent range from par...and a few car makers in Canada had egg on their faces for copying US pricing (and red ink on their balance sheets).
Now Porsche have changed their pricing to reflect the rebates they were giving since 2007-2008.
Here's an example for you on Audi pricing from over a year ago
2008 Audi S4 (when brand new
Launched in USA at $49,600
Launched in Canada at $69,000
difference 40% higher in Canada (40% premium on US price)
then they changed their pricing structure after parity with the dollar had ensued for a full year or two
2010 Audi S4 (when brand new)
- Launched in USA at $46,900 base
- Launched in Canada at $52,500 base
That's a difference of $5,600...or about 12% (i.e. nowhere near 25%). To import that car to Canada will cost you about $4000 (6.1% duty, a few hundred in fees...a few hundred in transportation costs)...so really pricing in Canada is only about $1600 off the price of an imported US car. That's about 3.5%. When you go to resell your imported car, you'll get a few grand less than a similar Canadian car, so in the end, you lose. Importing doesn't pay in this instance, as Audi have lowered prices. Already.
Oh, and yes I did import a 2007 S4 from the US...but I did so 3 years ago when pricing had not been adjusted in Canada, and the price difference was ghastly (not to mention the serious lack of product up here)
Last edited by sakimano; 02-11-2011 at 10:41 AM.
#12
Re: Strong Canadian Dollar Leads to Price Reduction...
please prove this.
*i won't hold my breath*
Audi lowered prices about 2 years ago once the dollar hit parity for an extended period. Porsche didn't, and instead was giving huge discounts/rebates because they were not comfortable lowering prices, only to have to raise them if the C$ weakened. They were right for a while...through the economic crisis, the C$ fell to high 80 US cent range from par...and a few car makers in Canada had egg on their faces for copying US pricing (and red ink on their balance sheets).
Now Porsche have changed their pricing to reflect the rebates they were giving since 2007-2008.
Here's an example for you on Audi pricing from over a year ago
2008 Audi S4 (when brand new
Launched in USA at $49,600
Launched in Canada at $69,000
difference 40% higher in Canada (40% premium on US price)
then they changed their pricing structure after parity with the dollar had ensued for a full year or two
2010 Audi S4 (when brand new)
That's a difference of $5,600...or about 12% (i.e. nowhere near 25%). To import that car to Canada will cost you about $4000 (6.1% duty, a few hundred in fees...a few hundred in transportation costs)...so really pricing in Canada is only about $1600 off the price of an imported US car. That's about 3.5%. When you go to resell your imported car, you'll get a few grand less than a similar Canadian car, so in the end, you lose. Importing doesn't pay in this instance, as Audi have lowered prices. Already.
*i won't hold my breath*
Audi lowered prices about 2 years ago once the dollar hit parity for an extended period. Porsche didn't, and instead was giving huge discounts/rebates because they were not comfortable lowering prices, only to have to raise them if the C$ weakened. They were right for a while...through the economic crisis, the C$ fell to high 80 US cent range from par...and a few car makers in Canada had egg on their faces for copying US pricing (and red ink on their balance sheets).
Now Porsche have changed their pricing to reflect the rebates they were giving since 2007-2008.
Here's an example for you on Audi pricing from over a year ago
2008 Audi S4 (when brand new
Launched in USA at $49,600
Launched in Canada at $69,000
difference 40% higher in Canada (40% premium on US price)
then they changed their pricing structure after parity with the dollar had ensued for a full year or two
2010 Audi S4 (when brand new)
- Launched in USA at $46,900 base
- Launched in Canada at $52,500 base
That's a difference of $5,600...or about 12% (i.e. nowhere near 25%). To import that car to Canada will cost you about $4000 (6.1% duty, a few hundred in fees...a few hundred in transportation costs)...so really pricing in Canada is only about $1600 off the price of an imported US car. That's about 3.5%. When you go to resell your imported car, you'll get a few grand less than a similar Canadian car, so in the end, you lose. Importing doesn't pay in this instance, as Audi have lowered prices. Already.
Actually, only some of that difference applies, because of course the US also charges duty on foreign imports. I believe the rate is 2.5% in the US, so that leaves 3.6% of the difference.
And how does one account for the difference in freight and PDI? It is $1995.00 for Canada. The destination fee in the US is only $875.00.
And how does one account for the difference in freight and PDI? It is $1995.00 for Canada. The destination fee in the US is only $875.00.
- US: 3.0 TFSI® Premium Plus with six-speed manual - $47,100
- Canada: 3.0 TFSI® Premium with six-speed manual - $57,200
I was not referring to comparing Canadian prices to the cost of importing from the US. I was referring to the fact that Audi North America is charging far more to Canadians than it is to Americans for the vehicles it imports from Germany. They also pay duty in the US (as noted in my other post), albeit at a lower rate. The delivery charges in Canada are also much greater in the US, despite the fact the vehicles travel similar distances.
My opinion is that Audi is either gouging its Canadian customers or offering its American customers an incredible bargain. Either way, I think they could afford to close that gap somewhat without going bankrupt.
#13
Re: Strong Canadian Dollar Leads to Price Reduction...
I cant confirm I did this 100% correct cause I cant really read German but I looked at the prices of the A4 (Starting at...) on the German Audi, Usa Audi, and Canadian Audi pages...
Guess whos is cheaper...
USA - Starting at $32,300 USD
Canada - Starting at $37,800 CAD = $38,200 USD
Germany - Starting at 26,900 EUR = $36,400 USD
I know it changes as you add options - and some cars have more options "standard" than others... just thought that was interesting...
Guess whos is cheaper...
USA - Starting at $32,300 USD
Canada - Starting at $37,800 CAD = $38,200 USD
Germany - Starting at 26,900 EUR = $36,400 USD
I know it changes as you add options - and some cars have more options "standard" than others... just thought that was interesting...
#14
Re: Strong Canadian Dollar Leads to Price Reduction...
I went on the Audi World wide and configured my car in Germany.
It came to 68749 euros.
That works out to about 92 or $93,000 CAD. We save about $25,000 by being located beside the USA and not Germany.
Remember, we are just a very small market for automakers so we are somewhat lucky although compared to the US we do sometimes get hosed.
I don't understand why they don't just have one Audi N.A. company and provide the same cars. I can change my car from metric to standard measurements from the setup in MMI. I currently have the temp in F and the mileage in mpg(US) but the speed in KMH just for something different.
It came to 68749 euros.
That works out to about 92 or $93,000 CAD. We save about $25,000 by being located beside the USA and not Germany.
Remember, we are just a very small market for automakers so we are somewhat lucky although compared to the US we do sometimes get hosed.
I don't understand why they don't just have one Audi N.A. company and provide the same cars. I can change my car from metric to standard measurements from the setup in MMI. I currently have the temp in F and the mileage in mpg(US) but the speed in KMH just for something different.
#15
Re: Strong Canadian Dollar Leads to Price Reduction...
I went on the Audi World wide and configured my car in Germany.
It came to 68749 euros.
That works out to about 92 or $93,000 CAD. We save about $25,000 by being located beside the USA and not Germany.
Remember, we are just a very small market for automakers so we are somewhat lucky although compared to the US we do sometimes get hosed.
It came to 68749 euros.
That works out to about 92 or $93,000 CAD. We save about $25,000 by being located beside the USA and not Germany.
Remember, we are just a very small market for automakers so we are somewhat lucky although compared to the US we do sometimes get hosed.
Don't kid yourself that we are a small market. Some companies see Canada as a lucrative place to do business, and others don't. That can sometimes result in some cars being less expensive here than in the US. It just seems to be the companies that gouge Canadians that hide behind the "smaller market' shield.
#16
Re: Strong Canadian Dollar Leads to Price Reduction...
We are a small market relative to the US and get the discounts relative to the rest of the world because we're so close by. They can't have too large of a difference or people won't buy new, but we also don't get the price break for volume the US does.
#17
Re: Strong Canadian Dollar Leads to Price Reduction...
#18
Re: Strong Canadian Dollar Leads to Price Reduction...
Just a little thing about this topic.
technicality actualy...
If you purchase a US Audi or any car for that matter. when selling to someone else, it will usualy make more sense since you will be loosing less..
BUT selling the car as an exchange or trade in to a dealership usualy ends up being a disadvantage because they take into consideration that you baught it at a lower price depending on time place and us/ canadian $ value etc.
depending on what you do to obtain the US car. you can have savings anywhere from 1000 to 15-25000 depending on the car the deal etc.
it gets really complicated from there on but im just saying..basicaly..
if your going for a trade in with a us baught car. dont be surprised if the guy gives you a lot less then the canadian black book says. simply because its not a canadian car.
its also a way to protect our market (im guessing) in a certain way.
technicality actualy...
If you purchase a US Audi or any car for that matter. when selling to someone else, it will usualy make more sense since you will be loosing less..
BUT selling the car as an exchange or trade in to a dealership usualy ends up being a disadvantage because they take into consideration that you baught it at a lower price depending on time place and us/ canadian $ value etc.
depending on what you do to obtain the US car. you can have savings anywhere from 1000 to 15-25000 depending on the car the deal etc.
it gets really complicated from there on but im just saying..basicaly..
if your going for a trade in with a us baught car. dont be surprised if the guy gives you a lot less then the canadian black book says. simply because its not a canadian car.
its also a way to protect our market (im guessing) in a certain way.
#19
Re: Strong Canadian Dollar Leads to Price Reduction...
I'm thinking of purchasing an Audi in the states not so much because of price, but because some of the options simply aren't available here (especially on the A3). The American version can actually still get all the options like nav, and your choice of colors .
Thread
Thread Starter
Forum
Replies
Last Post
a6baz
A6-C6 - (Typ 4F, 2004–2011)
8
12-18-2014 11:56 AM
rraj2k9
General Audi Discussion
2
01-28-2010 12:57 PM
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)