Prices On Used Cars

Q.Apple's just announced new iMac computers are at an 8.3% rate; very reasonable. Those car manufacturers who rip Canadians off are digging themselves a big hole. The consumers are revolting now and when they finally adjust their prices the used cars (leased cars included) will take a very big hit. Does Canada have some kind of hidden tax on car manufacturers that has to get passed on to the consumer in higher sticker prices?

A.Played exchange rates myself in 2001, when I bought a German car in Germany and drove it to the UK as a personal import. Loads of people were doing it. Saved thousands of pounds. The prices in Germany for RHD went up and prices in UK went down a bit, narrowing the gap. I estimated that 8% of all cars bought in the UK that year were personal imports, with a MUCH higher percentage in the upper echelons. Was unsustainable for the dealers for any length of time. It's all about exchange rates and manufacturers taking advantage of the situation. When the CDN$ was $1.50 to the USA$ many USA people came to CDA to buy cars such as the Chrysler Neon. With the Neon made in low cost Mexico Chrysler was able to price it to either the CDN or USA markets. The result was many USA customers came to Canada to buy their Neon. Both the USA customer and CDN Chrysler dealer made money on the deal. Of course Chrysler opposed this and a Chrysler dealer near me lost their dealership by not stopping such sales.

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