Canadian Prices vs. US Prices

I hope that you are factoring into the equation all of the various costs associated with the potential importation of a US vehicle when doing your numerical comparisons. That is often the first mistake people make when looking at prices south of the border.

You have the exchange rate obviously (1.23122 today)......then 6.1 % duty......then 7% GST (and maybe PST)....then RIV fees, out of province inspection and certification fees.....parts and labor conversion fees for speedos, bumpers, french stickers....etc.....where applicable of course (>15 years old exempt)....freight from the US destination to yours.....cost and use of money.....it can take 60 days to get a car up here from the southern US sometimes......etc....etc.....oh...you'd want to do a PPI also......but who do you trust down there ? I can tell you stories..........heh.

In many cases the differential is not existent or not worth the trouble of importation when you consider that normally you will have to resell the thing at some point......and the markets being what they are always correct themselves....which leaves you in a position where your perceived savings on the US importation is non-existent.

Then no two used cars are alike.....with Ferrari maintenance costs out of this world if a major belt service is involved that can sway the pricing scale considerably. How many cars do you see for sale that say MAJOR SERVICE NEEDED but upon inquiring you find out it's required.

"Most" US Ferrari's are not really that much cheaper....if at all frankly. There's just more to choose from IMHO. Some cars that may be cheaper can't even be brought up here because you cannot get the parts from FNA to do the conversion. 355's come to mind first and foremost....go try and get bumpers for one from Ferrari.......I have been told by dealer's that they are not available at this time. And FWIW.....purchasing, painting and installing them will cost you about $20K if they were available.

 

If the car is 15yr old or older its a very simple process and the reason it is usually cheaper in the US vs Canada is simple supply and demand. I bought mine in the US and save about 10K, of course this was 10 years ago. The other thing I like about US cars is that they are usually driven all 12 months and don't sit during the winter like most CDN cars. Of course there are always exceptions. At the end of the day, buy the right car and as long as it's more than 15 yrs old and you are going to keep it for more than 10 yrs it doesn't matter if its a US or CDN car.

Just my 2 cents

 

I figure on a 15% Canadian pricing uplift for avoiding the risks and the simpler resale stories for Canadian cars. For the older stuff 15yrs+ there should be less of a difference in price - after all, 308's are everywhere in the US, even in Canada should be able to negotiate down close to final costs after importing.

There was an interesting thread a while back on the pro's/con's of buying US cars in Canada. given a choice, between two equal cars, I'd pick the Canadian car everytime.

My suspicion is that most of the higher price Canadian cars are in great condition, where a $30k USD TR is likely a very unlikely comparison! I'm sure you've seen some of the cars for sale on eBay with rotting interiors, crooked bumpers, missing belts....

 

Kds is correct.

For a car that can be purchased at, for example, 100,000 USD, the conversion includes but is not limited to:

100,000 USD
x 1.25 CND conversion = 125,000 CND
x 1.131 (7% GST + 6.1% duty) = 141,375

+ 182 (registation) = 141,557
+ 100 (air conditioning tax) = 141,657
+ 2000 (shipping, varies obviously, CND funds + tax remember) = 143,657
+ 500 (PPI, CND funds again + tax) = 144,157

Then there are the provincial inspections and of course the conversions. The bumpers can get incredibly pricey (15,000 for a Modena). If the car needs a major service, that can be anywhere from 5,000 - 10,000 depending on the parts and labour required.

As you can see, things get very costly very quickly, and there's still a plethora of other things that may be required if things don't go perfectly with the transfer. And that's if you do all the work yourself. If you use a broker, there's the associated fees there too.

Putting in an ample fudge factor, it seems as if a 100,000 USD vehicle could easily ring up a total of 170,000 - 180,000 CND or higher before you ever get to drive it.

To me, US prices don't seem "unbelievably low." In fact, almost each time once you factor in the above calculations, they seem rather high.

 

I bought my 348 from Steve Harris Imports. Imported into Canada (15 yrs old) without RIV interferance. No other inspections needed. Landed cost was approx. 20K below Canadian market. If you buy from a reputable source (I have found noone who has a beef with Sean Harris) and do your homework you can do very well on your purchase (IMHO). Patience is the key but you can save a lot of money. It made sense for me.

 

I plan on doing the same thing.... 15yr old 348 is what I will be looking at

 

all of the above are very credible arguments but one thing that always has me wondering when I see F cars for sale in the USA is the incredibly low millage on most of them. They have a whole year to drive these babies (unlike us here) and yet it is so easy to find an 8 to 15 year old f car with less than 10,000 miles on it every day on the web. Why? The other thing that makes them very expensive to convert (if less than 15 years old) here in Ontario is the fact that you can only get the parts through F of Ont. and they charge a fortune because they do not like anyone importing something they could have sold. Another point to keep in mind when buying a US car is that they are masters at hiding salvaged car records and you may never know that it was once wrecked and or odometer tampered with. Yes you can buy a great US F-car but you had better know the seller and previous owners.

 

I buy my parts from A)Local F Dealer, B) the various US dealers, C) Ferrari UK and other used parts dealers in the UK, whichever is cheaper. The dealer in Montreal has never had a problem with me bringing my own parts with me. However that is usually because he gives up looking for the 25 yr old parts and gets the service business anyways.

 

1st -they have a larger market and a larger number of cars imported. Look for a listing of 360's for sale and you'll find quite a list.

2nd -buy from a reputable source (like I said before). The greatest security is in knowing your vendor. Yes you pay a premium, but you also buy security.

 

It's agonizing for Cdn ferrari owners to look at prices of top notch examples in the US. The massive market forces of demand vs. supply, and the cultural 'throw away' mentality in the US, just push prices down at a much faster rate.

When you factor in the exchange rate, GST/PST, import duty, and mods that have to be done to a US spec car -- like 8km bumpers, mirrors, child restraint stuff -- the US models are still cheaper. But the gap is narrowed considerably and those thinking of importing usually decide not to because of (i) the hassles involved, and (ii) threat of lower sales prices in Canada of a US modified car. As a result, there seem to be few US spec cars (modified accordingly) for sale in Canada.

What this means is that, regardless of all the BS that's associated with a 'supposedly' free market of auto sales across the US and Canada, the Canadian buyer -- like me -- who paid way too much for his ferrari is somewhat 'protected' from the market forces south of the border.

In my case, late model 355 F1 Spyders in near perfect shape seem to trade for between $150-170K Canadian, and that's before GST,PST, and luxury tax (add up to 17.5%). I cringe when I see the same category of car offered for $80-90K US ($100-120K Cdn) in the United States.
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Interesting. I bought my car and drove it up from the the US.
It wasn't agonizing, in fact it was a lot of fun, going through the various cars and finding the right one and then buying it. At the end of the day...anything built after 1969...aside from the 288, F40, F50 and the enzo's are just cars....great cars....but still just cars.

As to the massive market forces, supply and demand...that works for you or against you depending on what you want. And it is not a US thing, it is a free market thing.

Pushing prices down is good for buyers, bad for sellers....so perhaps you will buy the car to drive and enjoy.... and not worry about what it will be worth when you are finished with it.

When I brought mine up from the US I paid a little customs and some GST and I still came out way ahead.

As to mods etc.....nothing for me as the car was 15 yrs old. With the US dollar as low as it is....I don't see the issue here.

As to the hassles... trust me that after you have bought your first Ferrari, the customs issues will be the least of your worries. Ferraris of any year are
not the easiest cars to own, if you are buying to own for a few years and then resell it...well then it's a car and it will depreciate....if you don't like cars depreciating I suggest you buy a pre 50's Ferrari, otherwise they will most likely depreciate. If you are already worried about what you will get for it in a few years in Canada, my suggestion is to not buy a Ferrari. You will most likely not make a profit, or even break even if you buy a late model US or CDN Ferrari, keeping it properly serviced and then sell it in a few year. You will loose money as most of these cars are in depreciating mode. My suggestion (and of course it, plus a toonie is worth 2 bucks) is to buy the car you like....get a PPI to make sure you get a good car....drive it, enjoy it. Life is short.....enjou the ride. I know I am.

 

jpl,

Interesting post.

I was considering (in the future) owning a 512TR or Testarossa and bringing in one from the states might be a good idea. I guess it still holds some nice memories from the Miami Vice days. I like the rakes and the side view mirrors.

Sunny

 

There's a very clean early 80's TR in red, near perfect condition, available in Coquitlam. He brought it in from the US himself. Another TR owner, up in Edmonton, also brought his in across the border himself.

There are some good deals up here in Canada, but usually done "off market", I'm suspecting that even some of these dealers advertising big bucks actually sell for a less, a lot less, when they do finally decide to sell.