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why canadian car manufacturers have been slow to drop prices.
~ By The Westminster VW Team
Many Canadian’s have been generally disgruntled with car manufacturer’s
unwillingness to change their prices to reflect dollar parity with the US. What
people fail to realize is that it is a little more complicated than simply equaling
prices.
Manufacturers have faced a huge challenge and have carefully looked at the radically
fluctuating exchange rate and consumer demands and adjusted new car prices accordingly
- but with caution so as not to damage the overall Canadian automobile marketplace,
negatively impact used car values, upset the critical leasing market in Canada
and anger owners who purchased vehicles in recent years.
With 50% of all new vehicles being leased in Canada any massive price reductions
would disrupt the residual lease values. So what we are seeing instead is the
manufacturer’s offering other incentive’s such as cash rebates, lower
rates, extended warranty discounts, and extra equipment.
The bottom line is that
things simply cost more in Canada. It is more expensive to distribute and sell
vehicles. These are just facts. While the price differences can be discouraging
to Canadian car buyer’s it is important to see the big picture.
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