Apr 20
Volvo Canada thinks Canadians have more money than brains…
We really had a laugh yesterday when we looked through all the misleading Auto ads in the Gazette. Now we know why the Gazette doesn’t want to print the truth about pricing, more than 75% of their revenues must come from Canadian Car ads. … but back on topic…
Check out this ad from Volvo, Pay cash and they give you up to a $9,000 dollar discount. Sounds good until you find out that the price difference for the entry level with no options XC90 AWD Executive model is $79,006.85 Tax in. The US model is 50 versus $60362.16 Tax In ( Including the 6.1% European tax) … a difference of $10,000 after a possible $9,000 cash rebate…if we had more time we would call and probably find out that the rebate was only $8,000 ( after tax ?) because we did not buy the fully loaded model?!
Need we say more…
2010-04-20volvocanada.jpg 2010-04-20volvousprice.jpg
April 20th, 2010 at 10:02 am
My wife thinks you are right I have more money than brains…
April 21st, 2010 at 2:13 pm
Not only that, but here is a cut and paste from the US web site. So in Canada you get to pay way way more, and you get much inferior support!
Volvo is excited to announce an unprecedented, Best-in-Class Coverage Plan that gives you five years* of ownership at next to no cost on all 2010 and 2011 models. It’s called the Safe + Secure Coverage Plan, and it offers tremendous value by saving you thousands of dollars on your vehicle repairs, and provides you peace of mind during your ownership experience. In fact, Volvo has the lowest cost of ownership of any luxury brand according to IntelliChoice.
The Safe + Secure Coverage Plan offers you exceptional value and financial security that goes beyond crumple zones and airbags - it’s the security that only Volvo offers.
It’s “Safe” because it’s from Volvo, and it’s “Secure” because you’ll be driving your Volvo virtually worry-free for five years. The Safe + Secure Coverage Plan from Volvo. Because you should feel as secure purchasing a new Volvo, as you do driving one.
For more information about the Safe + Secure Coverage Plan, click on the links below:
> 5 Year Warranty
> 5 Year Wear & Tear Coverage
> 5 Year Complimentary Factory Scheduled Maintenance
> 5 Years/Unlimited Miles Roadside Assistance
> Compare Safe + Secure
April 21st, 2010 at 3:14 pm
Thanks for your input Stephen. Looks like Canadians are really getting hosed. Serge and I welcome input on these issues. Good or bad as long as we manage to highlight real facts.
April 23rd, 2010 at 10:13 am
In addition to reading your site, I’ve written Ford to complain about pricing. Something I think more people should do. Here is their reply. I xxx’d out my name.
Dear Mr. xxxxxxx,
Thank you for contacting the Ford of Canada Customer Relationship Centre. We received your message sent on 4/22/2010 regarding the disparity in the price of a Lincoln MKT sold in the U.S. and in Canada.
Mr. xxxxxxx, we appreciate your interest in the wonderfully elegant and versatile Lincoln MKT. Ford of Canada sets its MSRPs by considering a number of factors, including the prices of its competitors¿ vehicles and Canadian consumer demands. Ford of Canada may also offer unique-to-Canada packaged options and standard features. When comparing prices between the U.S. and Canada, one must also consider incentives available in Canada which may not be available in the U.S.
We look forward to your support and patronage of our product and services. If you have any other inquiries or concerns, please feel free to contact us and we will be happy to address them.
Thank you for contacting Ford of Canada.
Sincerely,
Jennifer
Ford of Canada
Customer Relationship Centre
April 23rd, 2010 at 11:06 am
Thanks Stephen. This is great. It’s a lot of crap. Do you have a copy of your original letter. Send it on, maybe we can set up a template for our members and supporters to use. If we had a few bucks we probably could buy some software to generate everything. Just like those damn Conservative, Liberal and NDP emails asking me for money because they think they are doing a great job! I diverse… but a copy should also be sent to your local MP and the folks at Transport Canada that are responsible for allowing the Companies to treat Canadian citizens as second class Americans.
April 24th, 2010 at 8:23 am
I understand the Ford letter means - “listen Canadians - we charge what we can get away with - and we (father knows best) think you should continue to buy in Canada”
April 24th, 2010 at 7:16 pm
I haven’t checked the features lists in detail, but it looks like there is a min $6k savings for Stephen if he were to purchase in the US - and the warranty should be valid in Canada.
April 26th, 2010 at 8:57 am
Sorry, I don’t have a copy of the original note, as I used the “contact us” point on their web site. I simply pointed out that compared to some competitors, MB in particular, the pricing offered in Canada was very uncompetitive. As an informed consumer I would not consider this product unless they correct the issue. To pj: I have found a new dealer listed MKT on ebay for $49950, the Cdn build price is over $60K. The US dealer is of course not allowed to sell into Canada.
April 26th, 2010 at 11:19 am
Dealer agreements with their parent vary by manufacturer. If US Ford dealers say they are not allowed, then there are ways to do this - using a broker, a friend or relative, or even establishing a US address. On pricing, it is important to compare apples with apples. I expect an e-bay price may be close to the bone whereas a build price will likely not include incentives or bargaining room. In any event, Stephen is correct, on the Lincoln there is a lot of room for Ford Canada to adjust.
May 1st, 2010 at 9:05 am
To Stephen W: You stated that MB pricing in Canada * was * uncompetitive. I guess you’re referring to pre-2008 prices. I agree they were. The new C300 4matic price is down $6,800 compared to 2006 C280 4Matic model with same options. Same with the new E350, which is $12,000 less than last year’s model. However, they’re still higher than US prices. And unless we become a 350 million buyers market, it will remain that way.
I’m a sales rep in a Montreal MB corporate store. Of course lately we hear again about the price gaps. Now if Canadians are being ripped off, as so many people imply in your website, how do we describe European and South America’s markets? Last year, I had one potential buyer from Russia and another one from Brazil in our showroom. The Russian wanted an S550 for export. We do not sell for export, period! He claimed that buying the same car in Germany, to send to Russia, would cost him 40% more than in Canada, even after shipping costs from here…! The Brazilian pretty much had the same story. People from the Middle-East claim the price of an MB there is TWICE the Canadian price. One lady begged me to send a B200 Turbo to Lebanon! I recently sold an ML350 to a Danish guy who now lives in MTL, and he said the exact same thing, 2X our price in Northern Europe. So everything is relative….isn’t it? Now, as far as US prices, unless we want to become Americans, we’ll have to deal with it.
As for pre-owned values, I had a clear example, about 2 weeks ago, of what awaits the ex-US car owner in the long run. He had a gorgeous SL500 2006 to trade-in, ex-US. Wholesalers were offering a ridiculous value for it? Why? Because there is no way to really assess the history of the vehicle. Carfax ( and others) is not so reliable. They depend on info that they get from different sources. So basically wholesalers were telling him to go back to the US to sell it. What goes around comes around…So be prepared to keep your car for a very long time to make this process worthwhile.
As for MB in Canada, we are breaking sales records month after month. There must be a reason. Competitiveness?
May 1st, 2010 at 12:13 pm
Thanks for taking your time to keep everyone informed. Funny how the Canadian BMW dealers can sell cars to folks in other countries, but the Americans can not sell to Canadians.
Why do you continue to charge Canadians importing your cars $500 for a recall letter?
May 1st, 2010 at 1:24 pm
Bernard, you have raised a point about resale of an ex-US vehicle in Canada that I hear argued all the time. Could you explain a little further pls to help me understand. I am not suggesting that the history on a US vehicle is easy to find. But, if the reason for an inability to resell in Canada at a competitive price is that there is no real history:
1. Why do I see so many dealers (perhaps not MB) importing used vehicles (including MB) to resell on their lots in Canada? Are dealers somehow able to get the CarFax but individuals not, or are we Canadians a trusting/gullible lot when it comes to buying pre-owned from dealers?
2. If I purchase a new car (with original title) in the US and import it, the recorded history starts with me; in this case, are you suggesting there is no problem attaining a reasonable price on resale down the road?
Appreciate your imput.
May 2nd, 2010 at 8:19 pm
Brenard, I used MB as an example which I thought Ford could follow. As I read your comments and those from so many in the industry a trend unfolds. There is a concerted effort to rationalize and justify the high pricing in Canada. Bernard raises a red herring of what other countries do. Really, it matters little. Canada is next door to a huge price sensitive market. Canadians can travel sometimes as little as a couple of miles to shop in the most competitive market in the world. Manufacturing is North American in scope. If only the dealers in Canada would hold their wholesale and manufacturing partners to a higher standard. Instead of defending the status quo, embrace competition. Is it to much to hope they might try and defend their customer base, hold some feet to the fire, and demand fair treatment? It seems so. I expect they would sell more vehicles if they brought pricing equity to the Canadian market! They would certainly earn the respect of the Canadian consumer rather than the scorn which most of us (me anyway) feel. Time for an attitude adjustment in Canadian car business. If the dollar stays at par it will become a matter of their survival.
May 4th, 2010 at 3:25 pm
MB sales in Canada for April for each of the past 4 years - through one down and two dramatic upswings in the CA$
2777 (10)
2267 (09)
1869 (08)
1530 (07)
I’ll wait for comments!
May 6th, 2010 at 3:05 pm
> As for MB in Canada, we are breaking sales records month after month.
> There must be a reason. Competitiveness?
Yeah, how ‘about the fact that MB charges money for a recall letter, and the exorbitant fees involved with the “inspection”?
Please stop fooling yourself.
May 15th, 2010 at 3:09 pm
2008-2009 used Volvo are properly the best car to import the best car to import in Canada. The prices are ridiculously low compared to canadian prices.