View Poll Results: Do you feel US cars are worth the same or less than equivalent Canadian cars
I have a Canadian car and feel they are worth the same
8
8.33%
I have a Canadian car and feel U.S. cars should be bought for less
34
35.42%
I have a U.S. car and feel they are worth the same
44
45.83%
I have a U.S. car and feel U.S. cars should be bought for less
10
10.42%
Voters: 96. You may not vote on this poll
Do you feel US cars are worth the same or less than Canadian cars.
05-29-2012, 02:29 PM
#76
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Location: Ottawa,Ontario
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I only consult for high end import manufacturers and I saw first hand a dealer take a 300K hit because his recently terminated SM had ordered oddly spec'd cars for the last few years that were impossible to move and would not discount this "new" 2 year old inventory to clear it out. When the new GM started, the first thing he did was have a fire sale to clear out the old stock. No amount of F&I products and services covered that gap. The customers that bought those clearout vehicles got to pay close to used car market prices for essentially new cars with full factory warranties since they'd never been retailed. The dealer got to stem the bleeding and eventually save the business.
I have no doubt that bad decisions affect every kind of business, and a lot of times result in their downfall. There comes a time in every business when losses have to be cut. But, no dealership could survive very long with that kind of business practice repeated. They were able to overcome the damage done by the SM by cutting their losses and getting back to the business of making money. If you are trying to say that every dealership can survive a 300K hit to their bottom line, every year - then I would counter that those businesses must be making a profit somewhere.
Now - let's talk about if people should drive their Porsche in the winter and if it lowers the value... kidding, kidding
05-29-2012, 03:00 PM
#77
Rennlist Member
Noooo, I wasn't trying to say that, I was simply responding to statements that dealers never sell at a loss; I just used the one example to illustrate my point. Of course there are many profit centres within a dealership: new cars, pre-owned, parts, service, F&I. If you're ever in TO at our GTG, I'd be happy to outline the workings of the retail automotive business.Until then, I will let you all get back to discussing whether or not small ingots of gold are stashed somewhere inside every Canadian p-car during assembly to make them so much more valuable than every other market p-car.
Over and out...
05-29-2012, 03:24 PM
#78
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Join Date: Nov 2011
Location: Toronto
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05-29-2012, 03:59 PM
#80
RL Community Team
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I think part of the problem is that we have been brainwashed by the dealers. It wasn't too long ago that dealers here refused to service US cars, or they would make you wait a month for an appointment. When you went to trade in the car, they wouldn't take it, or they would give you a ridiculous offer because it was a US car. That has changed significantly now are many dealers now routinely sell US cars. Most US cars have more options and many have never seen snow, so they really shouldn't be worth any less.
Knowing all of the above, is it so hard to understand why a US import would be worth less in a Canadian Market?
The condition of a vehicle has no relavence to being US or Canadian. It is all dependent on the owner/s. Most of the Canadian Pcars that I know of are winter stored and spotless.
I do agree about there being more options and colour choice in the US market. This is due to population and sales volumes.
As for more options.....absolutely. It's easy to add more options to a new car when the US MSRP is $10,000 to $20,000 less then Canada and many states don't have a 13% (15% back a few years)sales tax.
05-29-2012, 04:19 PM
#81
RL Community Team
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05-29-2012, 04:40 PM
#82
RL Community Team
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Well, my experience has been that the US cars are way better spec'd and often in better condition too (maybe it's the climate!). I've been looking at Boxster S's for the last few months on both sides of the border and there is a marked difference in selection. Prices in the US are lower simply because the supply/demand ratio is skewed in favor of the buyer. Less selection and higher demand in Canada, means higher prices here...that's all! Those of you who profess to be sales professionals in this thread should understand this very basic principle. 
Oh, and by the way, dealers selling at a loss and sales consultants getting poverty level commissions happens more often than you think. Obviously not a sustainable business plan, but it happens for a variety of reasons too lengthy to go into here. But trust me on this as I see it first hand as I spend my life in dealerships across the country year round.
Oh, and by the way, dealers selling at a loss and sales consultants getting poverty level commissions happens more often than you think. Obviously not a sustainable business plan, but it happens for a variety of reasons too lengthy to go into here. But trust me on this as I see it first hand as I spend my life in dealerships across the country year round.
I be more then happy to speak up to the "Corporate Types" for the sales floor who are to worried to say anything for fear of unemployment.
