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Prius - US vs Canada

Discussion in 'Gen 2 Prius Main Forum' started by sarge.thomas, Jul 28, 2007.

  1. sarge.thomas

    sarge.thomas New Member

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    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.
     
  2. mcsj

    mcsj Member

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

    orenf New Member

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    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>
     
  4. Tideland Prius

    Tideland Prius Moderator of the North
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    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.
     
  5. jayman

    jayman Senior Member

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    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
     
  6. ranmandx

    ranmandx Junior Member

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    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.
     
  7. Tideland Prius

    Tideland Prius Moderator of the North
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    <div class='quotetop'>QUOTE(ranmandx @ Jul 29 2007, 08:23 PM) [snapback]487279[/snapback]</div>
    good luck!
     
  8. mullenj

    mullenj New Member

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    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: [email protected] [mailto:[email protected]]
    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.

    >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
    When responding to this email, please perform a reply with history so that the following conversational identifier "[THREAD_ID:542914]" is included in your response. / Lorsque vous rpondez ce courriel, veuillez choisir, Rpondre avec historique "[THREAD_ID:542914]" pour que le fil de discussion suivant soit inclus dans votre rponse.
     
  9. Tideland Prius

    Tideland Prius Moderator of the North
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    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.
     
  10. mullenj

    mullenj New Member

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    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.
     
  11. Prius 07

    Prius 07 Member

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    <div class='quotetop'>QUOTE(Tideland Prius @ Jul 30 2007, 10:09 PM) [snapback]487768[/snapback]</div>
    You do make some good points, but why is it that there is no appreciable difference in Honda prices between US and Canada? Personally I think what Toyota Canada wrote is Corporate speak to try to justify their price gauging in Canada and this is supported by my own experience with their dealers.


    1. There is no appreciable difference between the US and Canadian Prius to justify the significant price difference.
    2. Their scare tactics about the ability to modify the US Prius to pass RIV - total nonsense as all that is req'd is the addition of DRL. Yes Toyota dealers seem to be clueless how to do it (is this part of the game?) but it can be easily done by third party.
    3. Toyota Canada and some of their dealers try to hide behind the $4K subsidy - when you tell them how expensive the vehicle is their answer is "but you get the subsidy / rebate"

    Toyota is free to set their prices as they see fit ... we should be free to shop where we get the best value.
     
  12. Tideland Prius

    Tideland Prius Moderator of the North
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    <div class='quotetop'>QUOTE(prius1234 @ Jul 30 2007, 07:28 PM) [snapback]487785[/snapback]</div>
    True. A lot of my friends think hybrids are too expensive (this is coming from both people who truly can't afford it AND people who can afford one... go figure...). Right now, the TCH is the best value and I'm already having friends look at that. Even when they ask me, I forward them to the TCH instead of the Prius. I never expected anyone I know to buy one anyway lol.


    <div class='quotetop'>QUOTE(Prius 07 @ Jul 30 2007, 07:42 PM) [snapback]487791[/snapback]</div>
    Actually, the HCH-II in the US is more expensive than the Prius in the US but yeah Honda Canada dropped the price of the HCH-II when it came out. It went from $28,500 to $25,800 in 2006 (looks like someone had fun with the numbers). Also, yeah some dealers LOVE to use that excuse (esp. in BC where there's price fixing) and they're usually the shady ones. The others just take it in stride and try not to boast it... just nicely explain the rebates.
     
  13. jeffharries

    jeffharries Junior Member

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    I bought a 2007 Prius Touring Package #2 Magnetic Grey for $24,000 US 3 weeks ago in Oregon (no sales tax) using a Washington State Address and imported it into Canada and now have it registered in B.C.
    I have applied for the Provincial Sales Tax rebate on this Hybrid ($1800). The eco-rebate that the Feds have announced ($2000) now is limited to new Priuses purchased in Canada (Toyota Canada must have got to the Feds on this issue).

    This is a great car! I wouldn't have bought it for what Toyota Canada was asking for it, however, too expensive. But it is an excellent car! I am very impressed.

    And it feels really good driving a great car knowing that it is $10,000+ less costly than most other Prius cars that are here.
     
  14. Prius 07

    Prius 07 Member

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    <div class='quotetop'>QUOTE(Sarge Thomas @ Jul 28 2007, 11:03 PM) [snapback]486910[/snapback]</div>
    I feel your pain / frustration. Dealers refusing to sell to foreign buyers have bugged me since I went through the process of buying my Prius. I had a deal for a Prius made with a dealer in Rochester who actually charged my cc for the deposit then pulled the deal off the table due to threat from Toyota. He knew up front the difficulties in selling to a Canadian and thought he can still deal with me until the last day when the transaction papers were being prepared. He even went as far as to tell me that it is "illegal for him to sell to a Canadian". Needless to say I turned it around and told him there is nothing illegal about it:

    1. We have free trade between our countries
    2. The government made it easy to import through RIV

    If anything, refusing to sell to a Canadian is illegal. Now we go back a "few" years to my school days from which I recall learning about illegal trade practices - namely anti-trade; restrictive trade ... again this is many years ago and I seem to remember more and more less and less LOL :lol:

    I didn't and don't have time for it, but you may want to research this subject and see if this practice is in fact illegal. I didn't do it to not to pee off Toyota and any dealer who may potentially make a deal nor did I have the time to research it.

    A quick search on Google produced this:
    http://www.google.ca/search?hl=en&q=re...earch&meta=

    Restrictive Trade Practice

    Any agreement between people in a particular trade or business that restricts free trade in a market. For example, several producers may join together to form a cartel and fix prices; or a manufacturer may refuse to supply goods to a retailer if the retailer stocks the products of a rival company.

    If you going to do it I suggest you search on: restrictive trade; anti - trade ... but thread gently with Toyota / their dealers. You may just have them see the light.

    Good luck!
     
  15. mrnice

    mrnice New Member

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    Sarge - I guess the dealers name I gave you did not work out?

    I imported my 2007 Touring package 6 to Ontario 2 weeks ago. I have completed all steps of the import process and am loving my new car and the extra 10k. On top of the money I saved I have HID, leather and a slightly different looking Prius... all of which you can't get here.

    I paid no US sales tax.

    The whole process was easy once I found the dealer.

    If anyone has questions about an Ontario import I would be happy to try and help.
     
  16. Prius 07

    Prius 07 Member

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    <div class='quotetop'>QUOTE(mrnice @ Jul 31 2007, 10:34 AM) [snapback]487987[/snapback]</div>
    That's two dealer recommendations that didn't work out although I'm still holding out hope that the dealer I recommended gets back to you favourably Sarge.

    BTW I just got my $2K PST rebate cheque last night. I'm surprised how quickly it was processed within a week of my application they mailed an approval letter and few day letter got the cheque ... now have to campaign for the GST rebate...
     
  17. Prius 07

    Prius 07 Member

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    <div class='quotetop'>QUOTE(Sarge Thomas @ Jul 28 2007, 11:03 PM) [snapback]486910[/snapback]</div>
    Hi Sarge,

    We had some PM exchanges and still hoping that the dealer I recommended to you comes through. I just sent him an e-mail asking if he can help. I'll let you when he responds ...

    Best of luck :)
     
  18. ranmandx

    ranmandx Junior Member

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    Where are you getting the 10,000 dollar savings from. From my calculations i'm saving roughly 8100 after all expenses and such. I picked up a package 6 and compared it to a canadian package C mind you the C doesn't have leather and such. Are you guys taking into account how much it would cost to add leather to a canadian model? I thought comparing the higher end packages would end up making more of a difference since the packages here cost a lot more than the base. Mind you i got a fully loaded unit for maybe a 100 dollars more than a base model would cost here.
     
  19. Prius 07

    Prius 07 Member

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    <div class='quotetop'>QUOTE(ranmandx @ Jul 31 2007, 05:07 PM) [snapback]488295[/snapback]</div>
    I feel pretty certain of my calculation (at the time we all assumed that we'll get the GST rebate). The total savings would have been (still holding out hope for it) is $11,579. If we don't get the GST rebate then it is still $9,579. Not bad and people who bought later have the benefit of an even higher CDN$.
     
  20. ranmandx

    ranmandx Junior Member

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    Well yeah that does sound right with a package 5, adding leather was a bit more and cut out of the savings compared to a C package.

    <div class='quotetop'>QUOTE(Prius 07 @ Jul 31 2007, 08:55 PM) [snapback]488409[/snapback]</div>