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Discussion Starter · #1 · (Edited)
So out of curiosity I was looking at Prices for Canadian Hondas and I noticed their pricing was very strange. I converted their price on the Canadian Honda website from Canadian dollars to US dollars and I noticed that some cars were significantly more expensive and that other cars were slightly cheaper than in the US. Example:

Model_______US price (in USD)__Canadian price (converted to USD)_Difference

S2000_______$34,995_________$40,686_______________________+13%
Civic Si (4dr)_$22,105_________$21,464_______________________-2%
Fit Sport____$16,260__________$15,518_______________________-4%
Pilot EX AWD_$32,095_________$33,983________________________+5%
CRV EX AWD__$24,695________$26,309________________________+6%

(Note +% indicates how much more expensive the Canadian car is and -% indicates how much cheaper the Canadian car is)

My question is, why are the prices all over the board like that? The S2000 is 13% more expensive in Canada, and the CR-V and Pilot are 6% and 5% more respectively. On the other hand the Civic and Fit are 2% and 4% cheaper respectively. :confused:

It can't be due to demand, because I highly doubt, S2000s, CR-Vs and Pilots are in higher demand than Civics and Fits.
 

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My reasoning is that we're in different automotive markets. There may be a higher demand for certian models in the USA than Canada. Also, you have to take into account the changing value for currencies. Last year, when the two dollars were about par, there were many people going down to the US to buy new cars.
 

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Discussion Starter · #3 ·
My reasoning is that we're in different automotive markets. There may be a higher demand for certian models in the USA than Canada. Also, you have to take into account the changing value for currencies. Last year, when the two dollars were about par, there were many people going down to the US to buy new cars.
Yeah, demand could have something to do with it, but it seems a little strange that SUVs and sports cars would be in higher demand than small cars in Canada.:scratches:

Also, if the price difference were purely based on the exchange rate then all of the cars would be either cheaper or more expensive than the US cars. Instead, some are significantly more expensive, while others are slightly cheaper.
 

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demand, population, currency. i think thats all

honda oem parts are a whole different story. $80 for an OEM horn vs $18 down there?
 

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Discussion Starter · #5 ·
demand, population, currency. i think thats all

honda oem parts are a whole different story. $80 for an OEM horn vs $18 down there?
Yeah, but that still doesn't explain why the prices are all over the board.

If the difference were based on currency value, then all of the cars would either be cheaper of more expensive.

If the difference were based on demand then that would mean that SUVs and sports cars are in higher demand than small fuel efficient cars, which I doubt is the case.

If it were based on Canada's low population then all of the cars would be more expensive, yet some of them are cheaper.
 

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im not very good at explaining detailed things but its the ratio of total population of target market vs the demand for car a, car b, car c, etc.. that determines the pricing most of the time.
 

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Yeah, demand could have something to do with it, but it seems a little strange that SUVs and sports cars would be in higher demand than small cars in Canada.:scratches:

Also, if the price difference were purely based on the exchange rate then all of the cars would be either cheaper or more expensive than the US cars. Instead, some are significantly more expensive, while others are slightly cheaper.
I can tell you with good certainty that there is basically zero demand for S2000's most places in Canada. I'm in Saskatchewan and there wasn't a single dealer in my city that had an S2000 as nobody ever bought them (and at that price, who would). They had a couple in the show room during summer that never sold, and my friend at the dealership said they sent them back....I assume he means they had them sent to another provinces dealership.

The SUV thing I can definitely see, there are lots of farmers and people who live in small towns up here and need something with 4WD to get around in all the snow and rain that comes down on the dirt roads. That and all the women and old people who shouldn't be driving them but get talked into them by the dealership :eek:hnoes:
 

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Simple fundamentals of economics, supply and demand.
 

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Discussion Starter · #9 ·
im not very good at explaining detailed things but its the ratio of total population of target market vs the demand for car a, car b, car c, etc.. that determines the pricing most of the time.
Hmmm, I was thinking that it might have something to do with tariffs. The S2000 is made in Japan, and Canada might have higher tariffs on Japan than the US does, which would explain its significantly higher price. The Civic however, is made in Canada, so it would make sense for it to be cheaper than in the US.
 

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It could be taxes - sports cars and luxury cars may attract 'luxury taxes', whereas small cars like the fit and the civic will be cheaper cos they're more fuel efficient, and ur government is encouraging you to buy it.
 

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Discussion Starter · #11 ·
Simple fundamentals of economics, supply and demand.
No it's not, it's already been established that there is almost zero demand for the S2000 in Canada, yet it costs 14% more than in the US.

I can tell you with good certainty that there is basically zero demand for S2000's most places in Canada. I'm in Saskatchewan and there wasn't a single dealer in my city that had an S2000 as nobody ever bought them (and at that price, who would). They had a couple in the show room during summer that never sold, and my friend at the dealership said they sent them back....I assume he means they had them sent to another provinces dealership.
 

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Discussion Starter · #12 ·
It could be taxes - sports cars and luxury cars may attract 'luxury taxes', whereas small cars like the fit and the civic will be cheaper cos they're more fuel efficient, and ur government is encouraging you to buy it.
That's the thing I wonder about the prices advertized on the Honda website. Are they MSRP prices (Manufacturer's suggested retail price, before taxes) like they are on the US website, or are they the price with the tax already figured in?
 

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No it's not, it's already been established that there is almost zero demand for the S2000 in Canada, yet it costs 14% more than in the US.
In my area of southern Ontario, in and around Toronto, I see just as many S2000's as Si's. There are a ton of them around here during the summer months. CRV's and normal Civic's are everywhere.

The US has a huge population compared to Canada so Honda can price the cars cheaper for you because they make their money from selling so many of them. There is a much larger demand.

I work for Toyota and I was told once that Toyota sells more Corollas and Matrix in California then in all of Canada.
 

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Discussion Starter · #16 ·
In my area of southern Ontario, in and around Toronto, I see just as many S2000's as Si's. There are a ton of them around here during the summer months. CRV's and normal Civic's are everywhere.

The US has a huge population compared to Canada so Honda can price the cars cheaper for you because they make their money from selling so many of them. There is a much larger demand.

I work for Toyota and I was told once that Toyota sells more Corollas and Matrix in California then in all of Canada.
Then why are the Civic and Fit slightly cheaper in Canada?
 

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You cant simply base the price difference on the dollar exchange rate. An Si is cheaper in the US period. Last year when our $ was closer in value, many people purchased cars in the US to save money because the US has lower prices. Several people in the Canadian sections of this forum have purchased their Si's in the US and saved about $5000 because the dollar being equal, the US cars were cheaper.
 

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Discussion Starter · #18 ·
You cant simply base the price difference on the dollar exchange rate. An Si is cheaper in the US period. Last year when our $ was closer in value, many people purchased cars in the US to save money because the US has lower prices. Several people in the Canadian sections of this forum have purchased their Si's in the US and saved about $5000 because the dollar being equal, the US cars were cheaper.
What are the Canadian dealers asking for an Si? (In canadian dollars?)
 
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