Posted by John on December 27, 1998 at 15:59:40:
In Reply to: Re: It's not worth it when you add CDN taxes posted by Jonathan Forbes on December 27, 1998 at 12:26:52:
I just went to bmw.ca and calculated the price of my car in Cananda. With the equivalent package my 323i would cost CDN $39,820 (they didn't have in-dash CD listed so I just added $200). Dividing by the exchange rate of 1.55 that would be $25,690 and adding the provincial tax (8% since my aunt lives in Toronto and assuming I'll get the Canadian federal tax refunded back) that comes out to be US$27,745. I paid US$27,695 in the States including everything for the same car. I get the US warranty guaranteed (Sorry, but I'm still doubtful all US dealers will honor the Canadian warranty). The only difference between the two cars I've selected are that the Canadian car has heated locks and headlight washers, but the US model has 10 speakers instead of 6. This is not a simple arb, though I wish it was.
I need the savings to be at least $2,000-$3,000 to be worth it and to trouble my aunt. Plus in certain states, like California, you will be penalized by a $400 tax if the car is not built to EPA and CA emissions standards (It has to say it in the engine compartment). Yes, my analysis is flawed because I assumed there are discounts in the US and paid MSRP in Canada, but can the Canadian dealers discount the US$2,000 - US$3,000 to make it worth it for me? Also I didn't add Canadian Transportation charges, do you know what they are? I also didn't add the cost for the minor conversions needed for the US. Basically it's not worth it, you save $1,000 at most which you lose in resale. The average used-car buyer in the US would be suspicious of a car made to Canadian specifications and the same is true if you ever trade it in.