Will Canadian Car Prices Ever Match American Car Prices?

A posting at AutoBlog really caught my eye tonight, because I posted something similar in our forums a few months ago. As hard as it is to believe, the Canadian dollar is now worth more than the US dollar… something that has not happened in quite some time. Impressive, since the rate was 15% in the USD’s favor just earlier this year.

Although such a thing benefits Canadians going to the US, it doesn’t benefit them when it comes to buying a car. As always, buying a car in Canada carries a huge premium, even before taxes are included in the equation. For example, a Ford Taurus retails for $25,000 in the US, while Canucks are suckered into $33,000CAN. That’s a small example though. Higher-end cars have even wider gaps, from +10% onward. Will Canuck car prices ever hit par with American prices? Being a Canadian.. I am hoping so.

Even though the two currencies are at parity, the difference in the prices of various cars ranges from $7,000 to $10,000. An Audi A4 Quattro with the turbo 2.0-liter is $32,000 in the US, but it’ll set you back more than $40,000 in Canada. A $25,095 Taurus here will run you $33,399 in Canada. The discrepancy when it comes to Volvo is highest, with a 38-percent markup that equates to an $11,000 premium if you buy in Canada.

Source: AutoBlog