Jul 18

One More Note!

Tag: ConsumersRobert Lamb @ 9:10 pm

You have to love it when the news media starts using the buzzwords we have been using for several months now!  Thanks Lynn Moore on your excellent story in today’s Gazette.

Check out the first paragraph of the article today.        “American Cousins”!

Canadians pay more on new vehicles: CAA

Transport and preparation charges higher here than in the U.S., advocacy group finds

 
LYNN MOORE
The Gazette

Canadian consumers pay up to 60 per cent more than their American cousins on transport and preparation charges on 2008 vehicles even when the car is assembled in Canada, a CAA-Quebec analysis has found.

The consumer advocacy group - which continues to decry the difference between suggested retail prices for new cars in the U.S. and Canada - sent a letter to car manufactures this month seeking an explanation for the disparity.

“It seems inexplicable to us,” spokesman Philippe St-Pierre said yesterday.

This year, Canadian consumers will pay between 31 per cent to 61 per cent more in those non-negotiable charges, with the difference being as high as $1,000, CAA-Quebec found.

“We understand that transport and preparation charges can vary depending on the assembly site,” said senior director Sophie Gagnon.

“Given the current economic context … and the fact that the Canadian dollar has been pretty much at par with the U.S. currency for several months now, it is time that the industry reviewed these charges and resolved this unfair situation.”

Particularly striking were the differences in charges found for vehicles assembled in Canada. Canadians spent $1,855 in transport and prep charges for a made-in-Canada Acura MDX while their U.S. counterparts paid $715, or 61 per cent less, the analysis found.

And a made-in-Japan Subaru Outback will cost Canadians $1,495 extra, while the U.S. charges are $645, a 57-per-cent difference.

For a Chrysler Town & Country, which is assembled in Canada, the charges amount to $1,350 in this country, compared with $770 south of the border, for a difference of 43 per cent.

Several of the automakers operating in Canada also increased their transportation and preparation charges this year, in some cases by as much as 10 per cent.

Only Toyota lowered the charges in 2008, the analysis found.

The Canadian headquarters for Honda - which makes Acura - Subaru and Chrysler were contacted by The Gazette yesterday and comment on the findings of the CAA-Quebec analysis was sought from their spokespeople.

Only Chrysler provided a response.

“The difference in price from one market to another can be attributed to various factors such as different regulatory requirements, varying tax structures, incentive levels, and other charges related to transportation and preparation,” Chrysler’s written statement said.

Details of the analysis can be found in the “automobile” section of www.caaquebec.com.

lmoore@thegazette.canwest.com

One Response to “One More Note!”

  1. Don O'Connor says:

    Successful oracles tend to cloak their predictions under vagueness.
    So do automakers when trying to rationalize alleged excessive charges.
    As long as Canadians lay flat on their back and have their tummies
    rubbed by manufacturers “Canadian price adjustments” high price structures will continue.