Canadian $ vs. American $
11-19-07, 12:25 PM
#1
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Thread Starter
Canadian $ vs. American $
There's been a lot of press lately in Canada since the dollar achieved parity and beyond. Recently the loonie, as the dollar is called in Canada has retreated back to just above parity, but it is still a hot topic whenever disparities between the two currencies are aired, and none more than the dramatic impact on automobile prices. The LS in particular is priced much higher in Canada and this has left Canadian dealers in a lurch as sales have plummeted dramatically, displacing some share to US based fleet dealers and demo sales (Lexus USA has issued strict edicts to border dealers not to sell to those upstart Canadians). Lexus Canada unlike other luxury marques has held steadfast on its pricing and one could argue that they may be vindicated over the long term should the loonie turn south.
In the interim, with all this volatility, it seems they have been pressured to make some concessions, and these have been in the form of financing incentives - albeit always hard to measure, and now "excuses". Lexus Canada has given its website a facelift (Botox?) recently, and added the following:
I guess you guys don't get any of that stuff in the US, eh? 
I especially like the "Peace of Mind" category; we can always use more of that stuff, although it is certainly fuel for fodder for any armchair cynic. There are a lot of tangibles and intangibles in the list, so evidently they've been having sleepless nights over this topic, and it could get worse if the currency traders decide to really give the loonie loftier heights. If the above is a genuine attempt to bring buyers back to the showrooms, methinks they'll have to reach deeper into their pockets, as there's nothing shrewder than a tight-fisted Canadian when it comes to spotting a lousy deal.
In the interim, with all this volatility, it seems they have been pressured to make some concessions, and these have been in the form of financing incentives - albeit always hard to measure, and now "excuses". Lexus Canada has given its website a facelift (Botox?) recently, and added the following:
Made-For-Canada
Canadian vehicle specifications
When Lexus of Canada considers equipment on Lexus vehicles for the Canadian market, we select certain options and features, on a model-by-model basis, that we believe are best suited for Canada's challenging climatic and driving conditions. These may differ from equipment and options selected for vehicles distributed and sold in the U.S. market.
Customers might believe that the only real difference between Canadian and US vehicles relates to vehicle gauges (which are metric in Canada and imperial in the United States). Depending on model, however, made-for-Canada Lexus vehicles may include any of the following features:
* Heavy-duty heaters, batteries, and alternators;
* High capacity window washer fluid reservoirs;
* More robust weather stripping and seals;
* Added paint chip protection;
* Mudguards;
* Block heaters;
* All-season tires;
* An outside temperature gauge;
* Heated mirrors;
* Towing packages (for SUVs);
A streamlined purchasing or leasing process
Only Made-for-Canada Lexus vehicles are eligible for new vehicle promotions, programs, and incentives offered by Lexus Financial Services in Canada, including:
* Financing and leasing programs;
* Lease Renewal;
* Multiple Security Deposits.
Tax/government considerations
New made-for-Canada Lexus vehicles may be eligible for certain incentives provided by the Canadian federal and/or certain provincial governments. These include:
* The federal ecoAuto rebate for fuel efficient vehicles;
* Provincial sales tax breaks and rebates for hybrid vehicles.
Vehicles purchased in the United States will not qualify for the federal eco-Auto rebate. However, some provincial rebates may still apply. The purchaser of a US vehicle, once imported into Canada, may still be subject to the following:
* Green Levy (previously known as Excise Tax) on fuel inefficient vehicles;
* Excise tax on fuel inefficient vehicles;
* GST and provincial sales tax;
* Import duties on vehicles built outside North America;
* Any costs to modify or retrofit a U.S. vehicle to ensure it complies with Canadian regulations, including, for instance, the installation of daytime running lights; and the installation of an enhanced vehicle immobilization system (effective September 1, 2007).
Peace of mind benefits
Purchasing or leasing a made-for-Canada Lexus vehicle includes peace of mind:
* The Lexus Enhanced Alternate Transportation Program is only available in Canada to owners of made-for-Canada Lexus vehicles;
Warranty/servicing benefits
Made-for-Canada Lexus vehicles may enjoy certain warranty and servicing benefits not necessarily available in the US. These include:
* Special warranty policy adjustments and extensions from Lexus of Canada that are specific to made-for-Canada vehicles and which may include no-cost or reduced-cost replacements of components to ensure owner satisfaction;
* A streamlined warranty process: When a Canadian Dealer works on a vehicle covered by a U.S. warranty, it may take longer to confirm coverage, secure approvals and process the repairs.
* Access to Replacement Part and Components: Lexus of Canada only stocks replacement parts and components for Canadian-specified vehicles so that repairs can be completed in a timely manner. Lexus vehicles distributed in the U.S. may have equipment or components unique to the US market which may require additional lead time to secure replacement parts resulting in additional time to carry out any necessary repairs or servicing.
* Lexus of Canada offers optional extended coverage for servicing and repairs (ECP - Extra Care Protection). This coverage cannot be purchased for vehicles sold in the United States.
* Special Service Campaigns: Owners of Lexus vehicles purchased in the United States may not receive timely notification of safety-related service campaigns. In addition, where a safety recall is specific to a US vehicle, a Canadian Dealer may not be able to carry out any necessary repairs quickly if replacement parts are not readily available in Canada. Securing replacement parts from US sources may require additional lead time resulting in delays in carrying out any necessary repairs or servicing.
A trusted relationship
Buying or leasing a made-for-Canada Lexus establishes a trusted relationship that will last throughout the ownership experience:
* Guests gain access to Canadian Lexus Dealers' expertise on made-for-Canada vehicle specifications;
* Guests benefit from Canadian Lexus Dealers' knowledge of Canadian support and service programs;
* Guests are automatically enrolled in Club Lexus for online tracking of a vehicle's service history, participation in Dealer & Nationally sponsored events, customer financial information and warranty information.
Canadian vehicle specifications
When Lexus of Canada considers equipment on Lexus vehicles for the Canadian market, we select certain options and features, on a model-by-model basis, that we believe are best suited for Canada's challenging climatic and driving conditions. These may differ from equipment and options selected for vehicles distributed and sold in the U.S. market.
Customers might believe that the only real difference between Canadian and US vehicles relates to vehicle gauges (which are metric in Canada and imperial in the United States). Depending on model, however, made-for-Canada Lexus vehicles may include any of the following features:
* Heavy-duty heaters, batteries, and alternators;
* High capacity window washer fluid reservoirs;
* More robust weather stripping and seals;
* Added paint chip protection;
* Mudguards;
* Block heaters;
* All-season tires;
* An outside temperature gauge;
* Heated mirrors;
* Towing packages (for SUVs);
A streamlined purchasing or leasing process
Only Made-for-Canada Lexus vehicles are eligible for new vehicle promotions, programs, and incentives offered by Lexus Financial Services in Canada, including:
* Financing and leasing programs;
* Lease Renewal;
* Multiple Security Deposits.
Tax/government considerations
New made-for-Canada Lexus vehicles may be eligible for certain incentives provided by the Canadian federal and/or certain provincial governments. These include:
* The federal ecoAuto rebate for fuel efficient vehicles;
* Provincial sales tax breaks and rebates for hybrid vehicles.
Vehicles purchased in the United States will not qualify for the federal eco-Auto rebate. However, some provincial rebates may still apply. The purchaser of a US vehicle, once imported into Canada, may still be subject to the following:
* Green Levy (previously known as Excise Tax) on fuel inefficient vehicles;
* Excise tax on fuel inefficient vehicles;
* GST and provincial sales tax;
* Import duties on vehicles built outside North America;
* Any costs to modify or retrofit a U.S. vehicle to ensure it complies with Canadian regulations, including, for instance, the installation of daytime running lights; and the installation of an enhanced vehicle immobilization system (effective September 1, 2007).
Peace of mind benefits
Purchasing or leasing a made-for-Canada Lexus vehicle includes peace of mind:
* The Lexus Enhanced Alternate Transportation Program is only available in Canada to owners of made-for-Canada Lexus vehicles;
Warranty/servicing benefits
Made-for-Canada Lexus vehicles may enjoy certain warranty and servicing benefits not necessarily available in the US. These include:
* Special warranty policy adjustments and extensions from Lexus of Canada that are specific to made-for-Canada vehicles and which may include no-cost or reduced-cost replacements of components to ensure owner satisfaction;
* A streamlined warranty process: When a Canadian Dealer works on a vehicle covered by a U.S. warranty, it may take longer to confirm coverage, secure approvals and process the repairs.
* Access to Replacement Part and Components: Lexus of Canada only stocks replacement parts and components for Canadian-specified vehicles so that repairs can be completed in a timely manner. Lexus vehicles distributed in the U.S. may have equipment or components unique to the US market which may require additional lead time to secure replacement parts resulting in additional time to carry out any necessary repairs or servicing.
* Lexus of Canada offers optional extended coverage for servicing and repairs (ECP - Extra Care Protection). This coverage cannot be purchased for vehicles sold in the United States.
* Special Service Campaigns: Owners of Lexus vehicles purchased in the United States may not receive timely notification of safety-related service campaigns. In addition, where a safety recall is specific to a US vehicle, a Canadian Dealer may not be able to carry out any necessary repairs quickly if replacement parts are not readily available in Canada. Securing replacement parts from US sources may require additional lead time resulting in delays in carrying out any necessary repairs or servicing.
A trusted relationship
Buying or leasing a made-for-Canada Lexus establishes a trusted relationship that will last throughout the ownership experience:
* Guests gain access to Canadian Lexus Dealers' expertise on made-for-Canada vehicle specifications;
* Guests benefit from Canadian Lexus Dealers' knowledge of Canadian support and service programs;
* Guests are automatically enrolled in Club Lexus for online tracking of a vehicle's service history, participation in Dealer & Nationally sponsored events, customer financial information and warranty information.
I especially like the "Peace of Mind" category; we can always use more of that stuff, although it is certainly fuel for fodder for any armchair cynic. There are a lot of tangibles and intangibles in the list, so evidently they've been having sleepless nights over this topic, and it could get worse if the currency traders decide to really give the loonie loftier heights. If the above is a genuine attempt to bring buyers back to the showrooms, methinks they'll have to reach deeper into their pockets, as there's nothing shrewder than a tight-fisted Canadian when it comes to spotting a lousy deal.
Last edited by Johnny; 11-19-07 at 12:30 PM.
11-19-07, 01:25 PM
#2
I do think they are trying to more clearly differentiate between the Canadian and US Lexus products. IIRC most of those features are not on US models, except for the outside temp gauge.
With the US dollar at an all-time low that has given incentive to buy some US-priced products...
With the US dollar at an all-time low that has given incentive to buy some US-priced products...
11-19-07, 03:41 PM
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My .02 is that Lexus wants to reaffirm its logic with the Canadian consumer so that they might not join the droves of buyers heading south over the border for other consumer goods as evidenced by a recent news report from a Seattle TV station showing the longer vehicle lines at the border crossings.
Pat
Pat
11-19-07, 10:10 PM
#4
Interesting. Seems the extras for Canadian bound products would be good to many northern US folks. Doesn't matter to me much. Either this thread is to show Lexus is trying to get more sales out of Canada and less sales canabalization from the US or simply this thread is trying to start a Canada vs US thread.
I do wonder how the US dollar is called a Loonie though. If the US dollar were to collapse, the rest of the currencies would suffer tremendously.
Let's not start a Canadian-US war over this....
I do wonder how the US dollar is called a Loonie though. If the US dollar were to collapse, the rest of the currencies would suffer tremendously.
Let's not start a Canadian-US war over this....
11-20-07, 12:51 PM
#5
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Thread Starter
The engraved image is that of a common loon, a waterfowl that frequents the fresh waterways in Canada. There is no history on the origin the nickname that was tagged when it was first issued to replace the paper one dollar bill. The word on the street though was that it was a reflection of the weakness of the dollar and the somewhat loonie'ness the coin represented for some having been issued by those crazies in Ottawa (don't quote me on that one). Anyhow the name stuck. We also have a two dollar coin called the toonie - go figure.
11-22-07, 07:49 PM
#7
Nothing political here. The loonie is a term used to describe Canada's one dollar coin. The coin's obverse looks like this:
The engraved image is that of a common loon, a waterfowl that frequents the fresh waterways in Canada. There is no history on the origin the nickname that was tagged when it was first issued to replace the paper one dollar bill. The word on the street though was that it was a reflection of the weakness of the dollar and the somewhat loonie'ness the coin represented for some having been issued by those crazies in Ottawa (don't quote me on that one). Anyhow the name stuck. We also have a two dollar coin called the toonie - go figure.
The engraved image is that of a common loon, a waterfowl that frequents the fresh waterways in Canada. There is no history on the origin the nickname that was tagged when it was first issued to replace the paper one dollar bill. The word on the street though was that it was a reflection of the weakness of the dollar and the somewhat loonie'ness the coin represented for some having been issued by those crazies in Ottawa (don't quote me on that one). Anyhow the name stuck. We also have a two dollar coin called the toonie - go figure.
Thanks for the info Burnaby.
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11-24-07, 05:52 AM
#8
Lexus Test Driver
Some of those made for canada Lexus, should be in the North East of the US. Seeing Maine / NH / NY get similar winters like Ontario and Quebec.
It is interesting how so many things can add upto being like $30k extra.
It is interesting how so many things can add upto being like $30k extra.
11-24-07, 09:41 PM
#9
As long as you don't buy the car from the southern states, you're fine. Cause those states tend to equipped their cars with summer tyres and none of the stuff listed (EBH, mudguards, heated mirrors if opt.).
But then again, all of those are dealer-installed accessories (most Lexus models don't have mudguards anyway). Most Toyota SUVs in the Pacific NW come with a Towing Package too. I think the RX in WA state does too so that's another difference crossed off.
But yeah.. raising the price for 2008 doesn't help either.
Apparently someone in Lexus thinks that bluetooth adds ~$2k to the ES350. (The midrange used to be $45k now it's $47k.) The base price remains at $42,900 however.
Also, the IS250 AWD used to have premium leather as standard equipment. For 2008, it's the standard leather and you have to upgrade to the Luxury Package (at $50,000) before you get the premium leather.
A loaded US ES350 with UL package (but no PCS) is $44k. In Canada, it's $55k. Even with the 6.1% duty and conversion rate, it doesn't add to $55k.
But then again, all of those are dealer-installed accessories (most Lexus models don't have mudguards anyway). Most Toyota SUVs in the Pacific NW come with a Towing Package too. I think the RX in WA state does too so that's another difference crossed off.
But yeah.. raising the price for 2008 doesn't help either.
Apparently someone in Lexus thinks that bluetooth adds ~$2k to the ES350. (The midrange used to be $45k now it's $47k.) The base price remains at $42,900 however.
Also, the IS250 AWD used to have premium leather as standard equipment. For 2008, it's the standard leather and you have to upgrade to the Luxury Package (at $50,000) before you get the premium leather.
A loaded US ES350 with UL package (but no PCS) is $44k. In Canada, it's $55k. Even with the 6.1% duty and conversion rate, it doesn't add to $55k.
12-06-07, 04:32 PM
#10
If I was a Lexus Dealer owner in Canada I'd be pissed too when my customers would go buy cars across the border due to greenback weakness. So they're just saying hey, buy from me because even though it ain't as cheap as in US you get more. Fair game IMHO.
I believe the looney will go back to "normal" levels by mid 2008. There's another US rate cut on the way, so I'm hedging.
I believe the looney will go back to "normal" levels by mid 2008. There's another US rate cut on the way, so I'm hedging.
12-07-07, 07:54 AM
#12
Super Moderator
Loonie's current level is about right, Dodge says . . .
. haha.
12-07-07, 04:21 PM
#14
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Lexus is just playing damage control. 4,700 cars a day are being imported, I am sure a good number are Lexus vehicles. I just imported a Mini; like 30 (literally) of my clients have imported cars from SC430's to Z06's to F430's in the last two months.
12-07-07, 06:06 PM
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THE PERFECT MOMENT TO BUY YOUR LEXUS IN CANADA.
With recent changes in the value of our Canadian dollar now is a perfect time to purchase and enjoy the legendary luxury of a Lexus vehicle from your local Canadian Lexus dealer. The chart below outlines the Lexus Cash Credits available at your local Lexus dealer for both Cash purchasers (all retail customers except customers who lease or purchase finance through Lexus
Financial Services at a special rate of interest offered by Lexus as part of a low rate interest program. All advertised lease and finance rates are special rates) and to all retail customers who purchase finance/lease (customers who purchase finance/lease their Lexus vehicles through Lexus Financial Services at a special rate). A Cash Credit is a credit towards a reduction in the selling price of your Lexus vehicle.
See your local Lexus dealer for details today and savour the moment, while you still can.
ELIGIBLE 2007 MODELS Cash Credit
Cash Purchase1 Purchase Finance/Lease2
2007 IS 250 $6,000 $2,000
2007 IS 350 $7,000 $3,000
2007 ES 350 $7,000 $3,000
2007 GS 350 $9,000 $4,000
2007 GS 450 h $9,500 $4,500
2007 SC 430 $9,500 $4,500
2007 LS 460 $10,500 $5,000
2007 RX 400 h $5,500 $3,500
2007 GX 470 $7,500 $2,500
2007 LX 470 $15,000 $15,000
ELIGIBLE 2008 MODELS Cash Credit
Cash Purchase1 Purchase Finance/Lease2
2008 IS Series $5,500 $2,500
2008 ES 350 $5,500 $2,500
2008 SC 430 $7,500 $2,500
2008 LS 460 $8,500 $3,500
2008 LS 600h L $12,000 $5,000
2008 RX 350 $8,500 $2,500
2008 RX 400 h $5,500 $1,500
2008 GX 470 $7,000 $2,000
With recent changes in the value of our Canadian dollar now is a perfect time to purchase and enjoy the legendary luxury of a Lexus vehicle from your local Canadian Lexus dealer. The chart below outlines the Lexus Cash Credits available at your local Lexus dealer for both Cash purchasers (all retail customers except customers who lease or purchase finance through Lexus
Financial Services at a special rate of interest offered by Lexus as part of a low rate interest program. All advertised lease and finance rates are special rates) and to all retail customers who purchase finance/lease (customers who purchase finance/lease their Lexus vehicles through Lexus Financial Services at a special rate). A Cash Credit is a credit towards a reduction in the selling price of your Lexus vehicle.
See your local Lexus dealer for details today and savour the moment, while you still can.
ELIGIBLE 2007 MODELS Cash Credit
Cash Purchase1 Purchase Finance/Lease2
2007 IS 250 $6,000 $2,000
2007 IS 350 $7,000 $3,000
2007 ES 350 $7,000 $3,000
2007 GS 350 $9,000 $4,000
2007 GS 450 h $9,500 $4,500
2007 SC 430 $9,500 $4,500
2007 LS 460 $10,500 $5,000
2007 RX 400 h $5,500 $3,500
2007 GX 470 $7,500 $2,500
2007 LX 470 $15,000 $15,000
ELIGIBLE 2008 MODELS Cash Credit
Cash Purchase1 Purchase Finance/Lease2
2008 IS Series $5,500 $2,500
2008 ES 350 $5,500 $2,500
2008 SC 430 $7,500 $2,500
2008 LS 460 $8,500 $3,500
2008 LS 600h L $12,000 $5,000
2008 RX 350 $8,500 $2,500
2008 RX 400 h $5,500 $1,500
2008 GX 470 $7,000 $2,000