Canada

Tuesday, October 30th, 2007. Post written by: Jim

The SUV (or tax on inefficient vehicles) was introduced earlier this year while a tax incentive was introduced for fuel efficient cars. The incentive goes up to around $2000 for fuel efficient cars, while the SUV tax ranges up to $4000 depending on how “inefficient” the SUV is. Something like the hummer would cost you an extra $4000. 

With the CAD near all time high vs. the USD, I think canadian car dealers will be hurting. Even with a less favorable exchange of a few months ago, plenty of canadians were buying from south of the border – I almost ended up buying a slightly used Porsche Cayman S (if it was not sold before I had the chance!) Despite Porsche’s price cut of about 10% across the board, Canadian porsche prices are still around $12 to $15k over US prices. Now with the loonie worth more than the USD, the price difference becomes even greater I imagine most people would probably consider purchasing south as a main option. The price difference is significant enough even for lower ranged cars that many will probably shop for something in the US. 

When the time comes for me to replace my SUV, if current conditions persist, it’s very likely that I’ll find something down in the US.


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