Consumers seek probe on high car prices
4 Moncton car dealers did not discuss prices differences
CBC News
Posted: Jun 14, 2012 9:53 AM AT
Last Updated: Jun 14, 2012 11:03 AM AT
The Toyota Rav4 is made in Canada, but the two-wheel-drive version of the vehicle retails for $2,000 more in Canada than it does in the U.S. (Dave Chidley/Canadian Press)
New Brunswick consumers are starting to ask questions about why the federal government is not investigating why it is cheaper to buy Canadian-made cars in the United States than at home.
A CBC report has found that Canadians are paying thousands of dollars more to buy cars in Canada than in the United States.
Fernand Girouard said his neighbours have already figured out that cars, even if the cars are built in Canada, are sold for less in the United States.
“I have friends that spend the winter in the states, in fact, they've shopped around and bought an American car,” Girouard said. He said his friends saved close to $3,000 on a $25,000 car.
CBC News looked at the relative prices of 24 models made in Ontario by the five big automakers — Ford, GM, Chrysler, Honda and Toyota — and found that in 18 cases, the models cost thousands of dollars more to buy in Ontario than in the United States, including Hawaii.
For example, a Woodstock, Ont., resident would pay $24,865, plus a freight and pre-delivery inspection charge of $1,465, for a two-wheel drive Toyota Rav4. The Rav4 is manufactured in Woodstock.
By comparison, the same vehicle would cost $22,650 in Honolulu, with an additional charge for freight and pre-delivery inspection of $810.
Joanne Milburn bought a new GM car last October and she said she's surprised to hear about the price differences between Canada and the United States.
“The Canadian dollar, American dollar are pretty much on par these days so why should there be that big a difference in price,” she said.
In Moncton, dealers for GM, Ford, Chrysler and Honda refused to do interviews with CBC News to say how their prices compared to their counterparts in the United States.
Investigation needed says consumers
The price differences for automobiles is causing some consumers to demand a formal investigation by a federal agency.
Girouard said the Federal Competition Bureau should conduct an investigation into why Canadians are paying more for cars south of the border.
“They sure should [investigate] because there shouldn't be that much difference. There's the exchange but now it's pretty much at par so that's no excuse any more,” Girouard said.
Gilbert Bernier also said he believes the competition bureau should be looking into this price difference.
“This is one thing they should definitely be looking into,” he said.
Bernier said if the federal government refuses to investigate it should at least make it easier to buy cars in the U.S.
A CBC report also found automakers are breaking U.S. law in order to prevent Canadians from buying cheaper cars there, according to an Ottawa trade lawyer and anti-trust expert, by ordering their American licensed dealerships not to sell new cars to Canadians.
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