Hi, Guest
09-28-2007, 02:30 AM
The beef is with the manufacturers not the dealers.
The manufacturers arbitrarily set retail prices and the price the dealer pays is always a percentage of MSRP - usually in the area of 90% of MSRP.
Typical dealer margins at MSRP are in the range of 10 to 12% depending on option content, and real-world margins are closer to 4 to 5%.
So there's no way a dealer can make up the difference, the reduction in prices has to come from the manufacturer and it has to be represented as a reduction in the MSRP.
If you read your Focus owners manual it clearly states that your warranty is good throughout North America - and Americans get the same manual. AFAIK it's only Honda that is using the "warranty threat" and they're really treading on thin ice with that one.
But let's be careful what we ask for ... the only real long-term solution is to price our vehicles exactly the same as they are in the U.S. and that means stating prices here in U.S. dollars, 'cause you know it will never happen the other way.
Otherwise all Canadian manufacturers would be changing their pricing every time the dollar moved; it's almost impossible to run a business like that and consumers would never stand for it.
The manufacturers arbitrarily set retail prices and the price the dealer pays is always a percentage of MSRP - usually in the area of 90% of MSRP.
Typical dealer margins at MSRP are in the range of 10 to 12% depending on option content, and real-world margins are closer to 4 to 5%.
So there's no way a dealer can make up the difference, the reduction in prices has to come from the manufacturer and it has to be represented as a reduction in the MSRP.
If you read your Focus owners manual it clearly states that your warranty is good throughout North America - and Americans get the same manual. AFAIK it's only Honda that is using the "warranty threat" and they're really treading on thin ice with that one.
But let's be careful what we ask for ... the only real long-term solution is to price our vehicles exactly the same as they are in the U.S. and that means stating prices here in U.S. dollars, 'cause you know it will never happen the other way.
Otherwise all Canadian manufacturers would be changing their pricing every time the dollar moved; it's almost impossible to run a business like that and consumers would never stand for it.
NOS2Go4Me,Sep 27 2007, 07:55 AM Wrote:There was an article online from the G+M that states that realistically, at least "border towns" with identical cars should have started adjusting their prices already.
The dealers' excuse is that the selling price is based on previous allocation times (earlier in the year) and the amount they've already been invoiced for the cars.
So what, there are then potentially HOW MANY cars that may never be sold due to the rise in the loonie? I'm not buying that... no pun intended.
If you want new, go States-side. If you don't care about warranty, you're all set. More and more manufacturers are denying warranty coverage on new vehicles purchased in the US, so beware.
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2008 Fusion SEL MTX - DD1 * 2009 Fusion SEL - DD2 * 2007 Focus ZXW - R*I*P * 2004 Focus ZTW CD Silver - sold * 2004 Focus ZTW Black - sold * 2003 Focus ZTW Black - sold * 2001 Focus ZTW Gold - sold * 2000 Focus SE Wagon (ZTW option) - Black - sold * 2000 Focus SE Wagon (ZTW option) - Gold R*I*P
2003 Focus ZX5 infra-red Track Rat - R*I*P
2003 ZX5 CD Silver Track Rat - retired, but still in the driveway
New track rat: 2000 ZX3, Atlantic Blue * JRSC with lots more to come
* New Zetec crate motor - NFG - thanks Topspeed *
2003 Focus ZX5 infra-red Track Rat - R*I*P
2003 ZX5 CD Silver Track Rat - retired, but still in the driveway
New track rat: 2000 ZX3, Atlantic Blue * JRSC with lots more to come
* New Zetec crate motor - NFG - thanks Topspeed *