FX Arbitrage
#1
Racer
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FX Arbitrage
911 4S = USD 87,100 * 1.0950 = CAD 95,375
CAD 95,375 *1.06 (Duty) = CAD 101,097
CAD pricing in Canada = 127,500
You save yourself CAD 26,403 !!!!!
I've heard from people who have done it that it'sa not THAT much work to bring a US car to Canada....I feel bad for my dealer but at that amount of savings it start to make sens.
Or put another way, you can buy a very low mileage 996TT for the price of a new 997 4S.
CAD 95,375 *1.06 (Duty) = CAD 101,097
CAD pricing in Canada = 127,500
You save yourself CAD 26,403 !!!!!
I've heard from people who have done it that it'sa not THAT much work to bring a US car to Canada....I feel bad for my dealer but at that amount of savings it start to make sens.
Or put another way, you can buy a very low mileage 996TT for the price of a new 997 4S.
#2
Instructor
On used cars, the differential gets even greater (i.e. 115-120k for a used 996 TT), but same car is only 70-80k USD (plus the 6.1% duty + exchange rate + GST/PST + any fees incurred for paperwork). Still, the gap is still HUGE.
http://www.mr2.com/TEXT/Import.html
http://www.mr2.com/TEXT/Import.html
#7
Track Day
Join Date: May 2006
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Warranty is valid, dealers are "encouraged not to sell to Canadians" but it is not illegal in any way.
The eventual resale might be impacted(wary of US car) but I think with the current exchange it becomes a non issue, 20-25K savings on new and used after factoring in 1.06 duty is hard to ignore.
Up to Porsche to narrow the gap or continue to face this. It is more the weakened US $ that is hurting them by not raising the price in their major market the US, rather than them trying to rip off canadians.
Semi free Markets at work ;o)
Ken
The eventual resale might be impacted(wary of US car) but I think with the current exchange it becomes a non issue, 20-25K savings on new and used after factoring in 1.06 duty is hard to ignore.
Up to Porsche to narrow the gap or continue to face this. It is more the weakened US $ that is hurting them by not raising the price in their major market the US, rather than them trying to rip off canadians.
Semi free Markets at work ;o)
Ken
Last edited by tksingh; 06-01-2006 at 03:18 PM.
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#8
Rennlist Member
I have a US car and prior to finalizing the deal, I phoned PCNA to ask about the warranty issue. The response was that the warranty is valid ANYWHERE in North America and that Canadian dealers are obligated to honour it regardless of whether they sold it or not originally.
BTW: I asked both Toronto dealers for 6 months to find me the right car and when that failed, I started looking in the US. Ironically, I bought my US car in Canada afterall. No regrets at all as it is better than any dealer examples I saw and trully flawless. It wasn't the cheapest US car but still saved me about $25K vs a dealer. No CPO warranty but I had 15 month of factory warranty left and no GST on a private sale. I almost bought an '05 997 at a dealer in Chicago for $65K US with 3 yrs and 2 CPO remaining; at the last minute I decided I prefered the 996 C4S over a 997 C2.
Lots more choice and value south of the border and they'll sell you anything come month end; money talks!
BTW: I asked both Toronto dealers for 6 months to find me the right car and when that failed, I started looking in the US. Ironically, I bought my US car in Canada afterall. No regrets at all as it is better than any dealer examples I saw and trully flawless. It wasn't the cheapest US car but still saved me about $25K vs a dealer. No CPO warranty but I had 15 month of factory warranty left and no GST on a private sale. I almost bought an '05 997 at a dealer in Chicago for $65K US with 3 yrs and 2 CPO remaining; at the last minute I decided I prefered the 996 C4S over a 997 C2.
Lots more choice and value south of the border and they'll sell you anything come month end; money talks!
#9
Three Wheelin'
This is the same as in Europe. I can take a trip over to Germany and pick a car up from the factory and drive it back to the UK and save myself a huge bundle. Porsche UK still have to honor factory warranty which is 2 years.....I think the same in Canada. But problems can occur if you sell the car. You will probably have loss in rediduals which will match what you saved by bringing it in cheaper. Also, if you have problems out-of-warranty then your on your own and you are unlikely to be offered any good-will from the OPC network. Finally, it's unlikely your local OPC will accept the car as a trade in should you want to trade up to a newer model in the future. There are pros and cons, it's not so straight forward as you think.
#10
Rennlist Member
Originally Posted by Scouser
This is the same as in Europe. I can take a trip over to Germany and pick a car up from the factory and drive it back to the UK and save myself a huge bundle. Porsche UK still have to honor factory warranty which is 2 years.....I think the same in Canada.
#12
Rennlist Member
Sorry, I didn't realise that's what you meant. But why would the UK dealers descriminate against a Euro delivery? Here you can have the dealer set up the Euro delivery and ship back you CDN spec car after you're done with your vacation.
#13
Originally Posted by tksingh
Up to Porsche to narrow the gap or continue to face this. It is more the weakened US $ that is hurting them by not raising the price in their major market the US, rather than them trying to rip off canadians.
Semi free Markets at work ;o)
Ken
Semi free Markets at work ;o)
Ken
Jason.
#14
Three Wheelin'
Originally Posted by pongobaz
Sorry, I didn't realise that's what you meant. But why would the UK dealers descriminate against a Euro delivery? Here you can have the dealer set up the Euro delivery and ship back you CDN spec car after you're done with your vacation.
#15
Track Day
Join Date: May 2006
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I think the whole dealer not being happy about it is crap. The dealerships make money off warranty work and regular service. Think about it, if I buy from one CDN dealer and then go to another CDN dealer, they are fine even though they did not sell me the car. Dealers make the most money on options, especially dealer installed, service and warranty work.