Prius - US vs Canada

[sarge.thomas]

The list price of a Prius with package B in the US is approx USD23,500. At todays currency rate with import duty, taxes and provincial ecorebates factored in, it translates into CAD 28000. The same car in Canada minus the backup camera option is CD 38,000 after factoring in taxes and rebates. That is a CAD 10,000 or 26% premium for buying Canadian for the exact same product. For all their professed good corporate citizen image, does Toyota think Canadians are ideal candidates for price-gouging. Yes, that is what it is called when one is looking at a 26% difference for exactly the same car made in the same factory in Japan.

And in all their wisdom, Toyota have now warned all dealers in the US border states and a little beyond not to sell to Canadians, at the risk of having their dealership license reviewed. This has now turned personal. The US and Canadian govts don't really care about where you buy your car. I am not amused when companies use strong-arm tactics to intimidate consumers and engage in a little price-gouging when they are almost a monopoly (in hybrids, anyways). I am now determined to buy the car in the US and beat Toyota Canada at their gouging game. Of course, I could always get a Honda hybrid which is priced reasonably on both sides of the border but that would be giving in.

So let me pose the question. What does it take to buy a car in the US? a local mailing address or does one need a US driving license? I looked at buying through relatives but it turns out be a insurance hassle + not to mention that driving a car with US license plates, registered to a US citizen, is considered illegal by the Canadian govt. I don't want to break the law but I don't want companies using their might to screw the consumer either.

Thanks in advance for all suggestions and comments on this topic.

[mcsj]

<div class='quotetop'>QUOTE(Sarge Thomas @ Jul 28 2007, 10:03 PM) [snapback]486910[/snapback]</div>

Yes, that is what it is called when one is looking at a 26% difference for exactly the same car made in the same factory in Japan.
[/b]

Yes I think there's a big difference... and no, it's not gouging.

Canadian version has day-time running lights, and automatic headlight (had both in my corolla but not on a U.S. version of my Prius) So the U.S. version and Canadian version are cousins, not identical twin.

Canadian version "cost" more because U.S. dollars fell sharply (close to 1/3 against most currencies since 2004, current Prius debuts). To remain competitive with the "Small 3", foreign car companies did not pump up the price because of weak U.S. dollars.

You should thank the 42nd president of the U.S., for his wonderful administration in the past 6 years, which gives you a bargain price for your new Prius.

[orenf]

Search the forum for "Canada", as this has been discussed recently.

You'll have to find a US dealer who'll deal with you, knowing you're Canadian. Otherwise you won't get a good deal.
With a US address, you'll have to pay US sales tax (unless your US address is in a state with no sales tax). You'll have to register the car in the US (the dealer won't provide you the export paperwork required by US Customs and RIV, since you're a domestic buyer). This means that when you arrive in Canada, your car has already been titled, which (at least in BC) means you won't be eligible for PST refund (the car has to be brand new in order to get the refund).
Note that you CAN buy the car in the US, via relatives/friends, and import it to Canada as a used vehicle, but you won't get the PST benefits.

So your worst case scenario looks like this:

- Pay US sales tax, pay duty, pay GST, pay PST. Not much savings left.

Check out my blog - I have detailed posts about the Prius import process. The most difficult step was to find a dealer who'll sell to Canadians. Shop around - there are dealers out there who'll take your money...

By the way - Toyota US dealers CAN sell you a used car (at considerable savings), since Toyota has no control on the secondary market. You don't pay sales tax in the US (as the car is destined for export), and you can easily import it to Canada. But you still won't get the PST refund.

<div class='quotetop'>QUOTE(Sarge Thomas @ Jul 28 2007, 10:03 PM) [snapback]486910[/snapback]</div>

So let me pose the question. What does it take to buy a car in the US? a local mailing address or does one need a US driving license? I looked at buying through relatives but it turns out be a insurance hassle + not to mention that driving a car with US license plates, registered to a US citizen, is considered illegal by the Canadian govt. I don't want to break the law but I don't want companies using their might to screw the consumer either.

Thanks in advance for all suggestions and comments on this topic.
[/b]

[Tideland Prius]

Keep in mind that it was 7 years ago that cars were cheaper in Canada (by probably the same amount.. I think someone used a Corvette as an example since luxury/sport cars tend to have a larger difference when it comes to exchange rates).

The "easiest" way is to import the car or ask a broker to do it for you.

[jayman]

My 2007 Toyota FJ Cruiser has about the same price differential comparing the Canadian model "C" package to a similar American model. The Canadians are getting gouged

[ranmandx]

As far as i know i do believe that you still get the PST in ontario back on any prius new or used up to 2000 dollars. All the dealers mention this regardless if the car is new or used. Correct me if i'm wrong. But then again i'm glad i'm getting one from the states brand new with the statement of origin slip Maybe because it is BRAND new and not titled before i might be able to fight for the Federal rebate as well when the paperwork comes out. Here's crossing my fingers.

[Tideland Prius]

<div class='quotetop'>QUOTE(ranmandx @ Jul 29 2007, 08:23 PM) [snapback]487279[/snapback]</div>

As far as i know i do believe that you still get the PST in ontario back on any prius new or used up to 2000 dollars. All the dealers mention this regardless if the car is new or used. Correct me if i'm wrong. But then again i'm glad i'm getting one from the states brand new with the statement of origin slip Maybe because it is BRAND new and not titled before i might be able to fight for the Federal rebate as well when the paperwork comes out. Here's crossing my fingers.
[/b]

good luck!

[mullenj]

Hello all! I've thought about getting a Prius for awhile now and have also thought of importing from the US to Canada because of the price difference and because I'd like to get the Touring Edition. I couldn't believe the price difference, and also couldn't figure out why the US would have more options to choose from, such as the Touring Edition.

I sent an e-mail to Toyota Canada in November 2006 to see what they had to say about it. For anyone else who is interested, below is the reply I got back from them.

If I do decide on a Prius, I will likely buy from the US if I can because of the price and options available, despite what the reply e-mail says. It seems that Toyota Canada needs to negotiate a better deal with Japan to set more competitive prices "for the product it distributes in its territory". Contrary to what their reply e-mail says as well, I do not find the Prius in Canada is competitively priced compared to other vehicles in Canada (although granted this is a hard comparison as its hard to compare "apples to apples" with this).

Anyway, good luck to all who decide to import a Prius from the US. I'm all for going for the better deal, even if that means crossing borders and importing (as we should be free to pursue the better deal even across borders in our society)! Being told where I can and can't buy a product is frustrating. Good thing this does not normally apply to most other products we use in our lives!

Also, please take note that the warranty appears to be good in the US and Canada (as per the reply e-mail), despite whether the vehicle was purchased in the US or Canada.


-----Original Message-----
From: toyota_feedback@toyota.ca [mailto:toyota_feedback@toyota.ca]
Sent: Monday, November 13, 2006 6:39 AM
Subject: RE: Trying to purchase a Prius, but have some

Thank you for your recent correspondence.

Toyota Canada Inc. is the exclusive distributor of Toyota vehicles in Canada. Each Toyota distributor (there are hundreds around the world) works with the manufacturer in Japan to set its own prices for the products it distributes in its territory. Pricing for Toyota vehicles therefore does vary from country to country.

Many business factors influence our vehicle pricing, such as: volume of units sold in this country, the value of our dollar (in comparison to foreign currencies), and the state of the Canadian economy. For the past few years, when the U.S. dollar was stronger than it is now, American residents were asking the very same question : they noticed that Canadian Toyota products seemed to cost less. That situation has now been somewhat reversed, but to a lesser degree.

Although there are similarities between U.S. and Canadian market vehicles, there are also differences in features and options which must be taken into account for the differences in pricing.

You will find that Toyota vehicles are very competitively priced if you compare them to other brands sold in Canada.

It is our understanding that Toyota dealerships in the United States may Not sell new U.S. specification Toyota vehicles for the purpose of export. It would violate the US distributor's agreement with the manufacturer in Japan. The same policy also applies to Canadian Toyota dealerships who are approached by those who wish to export Toyota vehicles into foreign countries.

The 2007 Prius is manufactured in Japan.

Toyota Canada does not offer a Touring Edition of the Prius. We offer two options packages know as the Premium Package and the Premium Package with Navigation. For details on these packages, we suggest visiting the Prius section of your website.

Toyota Canada discourages importing vehicles that were not manufactured for the Canadian market. We do not know whether or not a given model will comply with safety and emission standards in Canada. As well, parts and basic maintenance items for foreign model Toyota vehicles may not be available from local sources. Should a modification be necessary, a Canadian Toyota dealership is not equipped to perform the work. As the The Registrar of Imported Vehicles points out on its website, even if a vehicle is admissible for import into Canada there is no guarantee that it can be successfully modified to meet Canadian requirements.

For information on importing a vehicle to Canada, we suggest you visit the website of The Registrar of Imported Vehicles (a division of Transport Canada). The address is as follows: www.riv.ca . If you prefer, you may call them at 1-888-848-8240.

The manufacturer's warranty (regardless of whether it is a US Toyota vehicle or a Canadian Toyota vehicle) is honoured in continental USA and Canada.

Finally, as the 2007 model Prius was only recently released, information on the 2008 model (including pricing) is not yet available.

We hope that this information is helpful and thank you for taking the time to write.

Sincerely,

Cory Comrie
Toyota Canada Inc.

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[Tideland Prius]

At least the e-mail reply was a properly reply. It didn't seem like one of those automated ones so kudos to Toyota for that.

Keep in mind, the number of cars sold here is peanuts compared to the US. They sell ~2,000 Prius a year here compared to 40k+ (50k now?) a year in the US.

[mullenj]

Yes, I should have mentioned that, I was impressed with their personal reply. It was clearly not an automated response, and they answered every one of my questions. I didn't really like the answers I got, but I am very glad someone at Toyota Canada took the time to address each of my questions and concerns. It does show they have good customer service. Maybe they'll have luck in the future getting us Canadians a better deal on Prius', but in the meantime I am getting tired of waiting! :)

I suppose Toyota Canada would sell less Prius' than the US (but that should be the same for all vehicles due to population differences). I can't help but think if the price was closer to US pricing, they would sell far, far more! They are priced at such a premium here, it must have something to do with how few are sold. I doubt many are willing to pay the price for a compact, 4 door car, despite it being a hybrid.