Last post on May 31, 2009 at 9:16 AM
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What is this discussion about?
Sep 29, 2003 (2:32 pm)
Mass, I read chunks of the grey market thread. Thanks, again. 'Market splitting' with lower manufacturer-to-retail-outlet prices seems to be part of the story, with some makes anyhow.
Now, I'm curious about invoice price and holdback rate differences between the US and Canada on 'Yodas
and about which makes have larger/smaller across the border contant dollar spreads.
I'd be a believer that Access pricing supports 'artificially' high 'Yoda prices with some hard data on invoice prices.
Sep 29, 2003 (9:12 pm)
There are some major differences in the cost structure for Canadian vs. American dealers. FWIW, in the arena that I am most familiar with, Ford Canada's holdback is 2% of invoice while Edmunds says that holdback in the U.S. is 3% of MSRP. That's a big difference.
Sep 30, 2003 (4:07 am)
Do you think for some reason that it costs canadian dealers less to floorplan their cars than US dealers? You are right that is a big difference.
Not to get off topic, but I heard a news story on the radio the other day and this gray market stuff is getting into the spotlight again over prescription drugs. In the US there is a big deal about people, mostly seniors, getting drugs from canada. Alot of the same arguments are coming up about why the exact same drugs cost so much less in canada. The drug companies say it is because of canadian price controls, and that they can only make a profit in the US. The point was also made that the US is the only western country that allows drug manufacturers to advertise directly to the public. if these advertising costs were gone, then drug prices could be lowered in the US.
#132 of 158 Yup, holdback is an issue
Sep 30, 2003 (7:07 am)
Landru, Edmunds says US Blue Oval dealers get 4.25% holdback. Another big difference between the two markets.
The lack of transparency makes this whole thing tough to figure.
#135 of 158 Final thought
Mar 30, 2004 (11:37 am)
I purchased a 04 sienna le 7 passenger awd at $1750 under msrp in Ontario. I checked several dealers across Canada and the access price for the same vehicle is $250 under msrp. This is a rip off with all due respect to those of you who think that access pricing is fair, good or otherwise. Btw the negotiating took all of 20 minutes.
Best advice to other Canadians in other provinces is try a mini vacation in Ontario and drive back with your sienna. Better price and you got some additional value.
#136 of 158 Totally agree it's price collusion
Apr 21, 2004 (12:57 pm)
I can't imagine why anybody would think it's not when you can get the Sienna for so much cheaper in Ontario, while we folks here in BC can't.
You know, if Alberta does not have Access pricing, I really won't mind driving there from Vancouver to purchase myself a nice Sienna LE. Ontario is a bit too far for me.
#137 of 158 Dealer invoice & holdback
Apr 21, 2004 (1:35 pm)
Could someone tell me where I could get this information for Canadian dealerships...