Canadian Loonie reaches parity with U.S. dollar, so why are Canadian cars more expensive?
Filed under: Car Buying, Etc., By the Numbers
Due to the dollar’s dip, one American greenback is worth the equivalent Canadian Loonie. At least, it’s worth the same at the exchange window. However, it is not worth anywhere near the same amount at Canadian car dealerships, and at least one Canadian wants to know why.
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.
With those kinds of numbers, it’s no surprise that Canadians are going south of the border to find a set of wheels. The blogger, Clever Shark, has written to automakers to find out why the land of the maple leaf has to pay so much, but he’s not holding his breath for answers.
[Source: Clever Shark]
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