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Old 06-30-2006, 11:52 PM   #1
Slalom4me
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Member Since: Jan 2002
Location: Edmonton AB
Default 2006 MSRP Difference: US vs CAN

Can anyone explain to me why MSRP on a

CDN '06 Coupe 1SB (Victory Red/Cashmere) is $60,345 US ($67,805 CDN @ $0.89 exch)
while for a
USA '06 Coupe 2LT (Victory Red/Cashmere) it is $49,375 US.

Here are the sources of my prices
GM Canada "Build your vehicle" (I used T6E 2A6 Postal Code)

GM USA "Build your vehicle" (I used 08401 Zip Code)
The 1SB and 2LT codes appear to be for similar, if not
identical equipment.

(Aside from MSRP, other options like Z51 appear to be closer
to reflecting exch rate differences.)

Also, a notation about the import eligibility of '03-'07 Corvettes
notes that the bumpers need to be modified to comply
with CDN regulations. Does anyone have information
about what this entails?

Thanks,
Ken R.

.
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Old 07-01-2006, 07:34 AM   #2
Patman
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The reason is simple, they can't be changing the MSRP up here in Canada just because our dollar happens to be strong against the US dollar right now. When times were bad and our dollar was only worth about 65 cents US, the Corvette cost us a lot less up here in Canada in comparison to the price in the US.

So they have pretty much just kept the pricing structure the same over the years and just raised the price a little bit each year here in Canada. A new Corvette up here is still a killer bargain compared to other high end cars. You can get a new 2006 Corvette for close to $10,000 off MSRP anyhow, so that evens things out a lot more too.

One more thing, our base Corvette up here is equivalent to the 3LT model in the US, not the 2LT model, so that changes your formula a little bit too.
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Old 07-01-2006, 08:18 AM   #3
Slalom4me
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Location: Edmonton AB
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Quote:
Originally Posted by Patman
You can get a new 2006 Corvette for close to $10,000 off MSRP anyhow,
so that evens things out a lot more too.
Well, maybe not. I believe the USA MSRP on 2006's is being discounted
now at the end of the season, too.

Quote:
Originally Posted by Patman
they can't be changing the MSRP up here in Canada just because our
dollar happens to be strong against the US dollar right now. When times
were bad and our dollar was only worth about 65 cents US, the Corvette
cost us a lot less up here in Canada in comparison to the price in
the US.
I agree it is unrealistic to expect MSRP to fluctuate with short term
ER variations. But even at $0.83, a level the $CDN has been at or
above for 12 mo, a significant USA/CDN MSRP differential is apparent
- $56,279 US equivalent.

I can't speak to the relative pricing of Corvettes, but in the
autumn of '03 when the exch spread was much greater than it is
currently I was in the market and followed the pending arrival
of the CTS-V very closely. The adjusted USA & CDN MSRP were
essentially identical then.

Quote:
Originally Posted by Patman
One more thing, our base Corvette up here is equivalent to the
3LT model in the US, not the 2LT model, so that changes your formula
a little bit too.
This is the sort of difference that would help explain the pricing.

I had noticed that the CDN 1SB package includes heated seats which
I have not noticed being mentioned in the USA 2LT package. Other
than that, the online info appears pretty much the same at first
glance. If you felt inclined, I'd appreciate details about any additional
differences besides the seats.

Also, are you in a position to know whether 'Introductory Pricing'
for '07's is also applicable north of the '49th?

Thanks

.
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Old 07-01-2006, 08:36 AM   #4
Patman
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Quote:
Originally Posted by Slalom4me
Well, maybe not. I believe the USA MSRP on 2006's is being discounted
now at the end of the season, too.
It's not just at the end of the season up here though, you could get a new Corvette from Wilson Niblett in Toronto for about $10k off MSRP all the time. There is a huge profit margin built into the MSRP on the Corvette up here.

Quote:

I agree it is unrealistic to expect MSRP to fluctuate with short term
ER variations. But even at $0.83, a level the $CDN has been at or
above for 12 mo, a significant USA/CDN MSRP differential is apparent
- $56,279 US equivalent.
Keep in mind that they set the pricing in each country completely different, and just adjust it on a yearly basis. So in 1953 when the Corvette came out, it had a set price in the US and a set price in Canada and they have changed it based on inflation and most likely haven't taken the exchange rate into account. So over the years it has fluctuated to where some years the price is less up here and some years it's less down there.



Quote:
I had noticed that the CDN 1SB package includes heated seats which
I have not noticed being mentioned in the USA 2LT package. Other
than that, the online info appears pretty much the same at first
glance. If you felt inclined, I'd appreciate details about any additional
differences besides the seats.
All I know is that when you order a 3LT car in the US you get the following extras that we already get on the base model 1SB up here:

side impact airbags
cargo convenience net
HUD
Luggage shade
Memory Package
Compass in rear view mirror
Power telescoping steering
Universal transmitter
Bose premium 7 speaker system with CD
Power heated sport seats

Quote:
Also, are you in a position to know whether 'Introductory Pricing'
for '07's is also applicable north of the '49th?


Sorry, I have no idea on that one.
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Old 07-01-2006, 09:42 AM   #5
Slalom4me
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Location: Edmonton AB
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Thank you.

Evidently, I haven't done enough homework. Of course, this is
what the thread is for.

Unfortunately, the extra equipment in the base CDN car is kind
of unwanted in my case. A recent thread in the AutoX & Road Racing
forum raised the possibility of a special run of cars. It turns out
that those would require too much preparation for me (& wouldn't
be able to be licensed). But it got me thinking about what I could
get into in the way of a dual purpose vehicle.

Corvette Roller or "white" Body Interest

A local dealer was rearranging the floor yesterday in what appeared
to be preparation for a weekend Corvette feature event.

Still, with the '07s near at hand, the exch rate situation and the
apparent equipment differences, it seems it could be worth my while
to look further into what I'd need to do to have a US spec car comply
with CDN regulations.

.

Last edited by Slalom4me; 07-01-2006 at 09:52 AM.
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Old 07-01-2006, 10:09 AM   #6
Slalom4me
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Location: Edmonton AB
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Quote:
Originally Posted by Slalom4me
Still, with the '07s near at hand, the exch rate situation and the
apparent equipment differences, it seems it could be worth my while
to look further into what I'd need to do to have a US spec car comply
with CDN regulations.

.
A few minutes with the CF Advanced Search proved useful
From this post in the C5 section: Bringing a car into Canada

Quote:
Originally Posted by Zedder
Barrm...I called RIV and they told me that the "rear bumper energy
absorber part number 10334038 must be replaced with part number
10230344". List price is $239.75 CDN and I assume there are two of
them per car? Once this is done, the car is OK to register in Canada.
A few phone calls and a PM or two ought to give me a definitive
answer regarding the '06 & '07 models.

.
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Old 07-01-2006, 05:05 PM   #7
Slalom4me
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If a car was ordered through a US dealer, could it be built
to CDN specs? What a treat it would be to enjoy the ER
difference and pick up a new car at the Museum, knowing
that it was already prepped for trouble-free entry into Can.

Another question that comes to mind is how are warranty
matters dealt with for a car purchased in the US for use
in Canada?

I can say from personal experience that an import brand
does not honour their Certified Pre-Owned program across
the 49th.

.
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Old 07-04-2006, 12:12 AM   #8
Rizzo1
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The car companies are bending us over in Canada right now. The prices keep going up yet almost all companies are US based. The extra money is going direct to GM in this case. I wouldnt think of buying a new Vette in Canada right now. I asked a buddy of mine who owns a Dodge dealership why the cars are still priced the same and he said its because of free trade and gave me some BS story about why there is such a huge price difference right now. He smiled and basically agreed that Dodge was making HUGE $$ on Canadian cars right now because of the dollar. In the big truck market the price is adjusted every month and some companys adjust every week. The price of a Freightliner will go up or down every month based on what the exchange is. My bud just went down adn bought a new Nissan Xterra and saved him $7000.00 by buying it 1/2 hour south of the border. You cant tell me GM and all the other car makers were loosing money on every single car they sold in Canada when the dollar was around 1.50 3 years ago. Now they are just laughing all the way to the bank with Canadian cars. I know when I buy my next Vette it will be south of the border. It's just too much money to throw away to get the same car.
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Old 07-04-2006, 03:58 AM   #9
Korzym
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The reason is simple, it isn't because "they want to have a uniform price due to currency fluctuations" or if their favouring the us.

The real reason is this: there's a 13% importation tarriff on cars. Add 13% to the us price, then do the currency conversion and it works out. I thought NAFTA would dictate that there is no such fee. Its less noticable in the price of a G6 or Equinox, but if your talking about a car like the Z06, simple mathematics are at fault here for the much higher price.

That is the cold hard truth and you can go look up official documents about this from Canadian customs
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Old 07-04-2006, 10:37 AM   #10
doctord
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I am confused. I talked direct to Transport Canada to find out how easy it is to import an 06 corvette to Canada and they said the only cost would be a registration form at the border for $209.00 plus the A/C tax and GST on the cost of the vehicle. Nothing was mentioned about a 13% tarrif.
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Old 07-04-2006, 12:11 PM   #11
Slalom4me
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Location: Edmonton AB
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Quote:
Originally Posted by Korzym
The real reason is this: there's a 13% importation tarriff on cars.
Are you perhaps thinking about cars which are sold in the US but made
outside the NAFTA region?
"Generally, you do not have to pay duty on an
imported vehicle that was manufactured in the
United States, Canada or Mexico; however, we will
assess duty on a vehicle manufactured in a country
other than the United States and Mexico."
From this Canada Border Service doc: Importing a Vehicle Into Canada

.
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Old 07-05-2006, 02:37 AM   #12
Korzym
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Well LOL I read it somewhere a while ago. If thats the case I'd import like that, only concern is:

#1 US dealers cannot sell to Canadians, so you'll have to have a family member or friend buy it, but after that I'm not familiar with the process of transferring titleship. [Kerbeck told me this]
#2: the warranty be void and your out of luck as far as getting help from the dealership at which the car was purchased at. To solve this I'd look into asking a Canadian dealer if you can pay a few grand to have them take care of warranty issues. But if you didn't get a warranty you could always figure that you did save $15k cdn, so hopefully no repair bill reaches that amount..

Last edited by Korzym; 07-05-2006 at 02:39 AM.
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Old 07-05-2006, 02:44 AM   #13
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and sorry on a side note, if I was looking at buying a Z06 and wasn't fortunate enough to live in Alberta, I'd be looking into our province due to the low tax level. It's 6% sales tax only right? I'd hate to pay the 6% federal with a 7-9% provincial sales tax on top of it, ouch. That said the Alberta Z06 allocations should get snatched up if all my data lines up, which doesnt seem to be the case by dealer inventory
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Old 07-05-2006, 10:50 AM   #14
Slalom4me
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Yes, the federal Goods & Services Tax dropped to
6% from 7%, effective July 1st.

While I expect that dealers would be interested
in proof that the vehicle was going out of state
in so far as whether they are obligated to collect
state and any other local sales taxes, I'm less
sure whether they would care if the vehicle is
destined for Canada.

(That said, I know that I have seen import dealers
explicitly state in eBay auctions for Subaru STI's
during 04/05 that they will not sell to non-Us
citizens.)

It seems very unlikely a dealer could be persuaded
to take care of warranty issues for an out-of-country
car. Claims hinge on the VIN and the delivery
trail is documented. If warranty coverage is not
above board, then my vote is that it will not occur
- that raises the situation you suggest where you
weight the chances of an exceptional claim against
your savings.

As for Alberta Z/06 allocations being snapped up
by out-of-province buyers, one might expect the
same to hold true for pretty much any other vehicle
- but people still purchase cars and trucks in
their home provinces.
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Old 07-05-2006, 02:33 PM   #15
JeffH
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Default dont believe all the tax arguments...

Quote:
Originally Posted by Rizzo1
The car companies are bending us over in Canada right now. The prices keep going up yet almost all companies are US based. The extra money is going direct to GM in this case. I wouldnt think of buying a new Vette in Canada right now. I asked a buddy of mine who owns a Dodge dealership why the cars are still priced the same and he said its because of free trade and gave me some BS story about why there is such a huge price difference right now. He smiled and basically agreed that Dodge was making HUGE $$ on Canadian cars right now because of the dollar. In the big truck market the price is adjusted every month and some companys adjust every week. The price of a Freightliner will go up or down every month based on what the exchange is. My bud just went down adn bought a new Nissan Xterra and saved him $7000.00 by buying it 1/2 hour south of the border. You cant tell me GM and all the other car makers were loosing money on every single car they sold in Canada when the dollar was around 1.50 3 years ago. Now they are just laughing all the way to the bank with Canadian cars. I know when I buy my next Vette it will be south of the border. It's just too much money to throw away to get the same car.

GM is making the extra money because they can. just a different market...
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Old 07-05-2006, 04:32 PM   #16
Outlaw Joe
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Old 07-05-2006, 04:32 PM
 
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