Domainer

I was just at the bank earlier today and exchanged $5000 usd in cash and received about $5950 canadian .. Now, let's consider the msrp is about $32,500 canadian for a base mustang GT in Ontario ( so I have heard from salesmen here) . In the states I have heard ford came out with $25,000 usd for a base GT ..

And that's just for the base GT . The optional shaker 1000 unit in the states costs people in the US $1295 I hear.. This same option in Canada costs us $1995 canadian $'s .

Now, I went to a currency exchange site at xe.com which has a live currency valuation and it's updated constantly all day long according to the world currency market .. . And $25k US = $30,640 canadian . Yet, we are paying about $2k more here on msrp for the same car (and let's not include the higher taxes and higher gas costs here as compared to the states but that's really irrelevant here, let's just stick to the cost of the car).

And just to use the optional shaker 1000 as an example on the option prices, the exchange rate on the $1295 the US pays for their shaker upgrade- the conversion rate as of today is $1587 canadian. Yet we have to pay $1995 which is a difference of over $400 here..

Now, I understand there are shipping costs, but come on Detroit is right next to Ontario. We are alot closer to Detroit than Detroit is to Los Angeles for instance..

I understand we have a Ford manufacturing plant just west of Toronto in Oakville Ontario but I don't know if some mustangs are made there for the canadian market.

I am not here to basically complain about our prices, the mustang GT is a bargain even in Canada IMO and have ordered one. However, I want to know why the price gouging ? And I also want to know why canadians have to pay for the falling US dollar. The US dollar is falling to record levels and people see no end in sight to the lagging value of their dollar.

With that said , are we getting "screwed" so to speak ? Because I'd gladly buy a mustang here in canada and pay in american dollars with american pricing. Obviously I 'd rather use the difference in msrp costs on a set of nice rims if ya know what I mean..

Altoid

There maybe an import tax involved as the mustang is an import outside of the US.

adrenalin

I think you answered your own question. Yes, we are getting screwed. I think it's FORDs way of telling some of us that they want to screw us on purpose because when some of us married guys got home with our new cars we found out pretty quick that we will not be having sex for a long, long time.

I have had my car for over a month and the only foreplay I get now is when I wax the car before I take it for a ride.

Galaxie

The plant in Oakville builds the Freestar and had another line that up until recently built the F150. All Mustangs are built at Flat Rock

You are right, with the falling dollar, it is now cheaper to buy a Mustang in the US, using Canadian money. We had the flipside a few years ago, it got to the point where Canadain dealerships near bordertowns had to sign agreements not to sell to Americans.

It would be nice if Ford of Canada dropped prices to equalize things, but that will never happen.

This doesn't really affect me, as I am not paid in American dollars,

But it would be nice if they cut us a break on financing at the very least

Domainer

There maybe an import tax involved as the mustang is an import outside of the US. [/b][/quote]

Actually, I have viewed other american model cars just for the heck of it regarding this topic .. And the currency valuation rate on those msrp prices is more suited to the current exchange market between the 2 countries.. So I don't think that's an issue.

Fordracing200

isn't there another stang plant in canada? or all they all un michigan? yah base price american is 24,900 around here.

Domainer

Sure it affects you. It affects every canadian buying a mustang in Canada.. If the prices went according to the current exchange rate, you would have seen approximately a $2k discount on the sticker msrp price.

The price is set at $32.5K . With currency exchange valuations, the price should be at around $30.5k . Whether people get paid in canadian dollars or not.

adrenalin

Regardless we still have the government bending us over when we pay taxes

mr-mstng

XE lists the exchange rate as: $1 US = $1.2236 Can

Therefore $5000 USD = $6118 Can

That's just today too. If you look at the historical exchange rate Here , you will see that it was higher in summer, most likely when the Can. prices were decided.

Back in July when the exchange rate was ~1:1.33, you can figure this:

$1 USD = $1.335 Can.

$25,000 USD = $ 33250 Can

Altoid

<!--QuoteBegin- Fordracing200@ January 5, 2005, 2:22 PM
isn't there another stang plant in canada? or all they all un michigan?[/quote]

Fordracing200

ok, thanks. I skimmed through and didn't read everything. Sorry, lol

Galaxie

Domainer what are we going to do? call Ford and complain?

Its a win/lose situation, for a few years we had it good, as the currency difference made our cars cheaper than American ones. What would have happened had car compaines jacked up prices when the Canadian dollar was weak? Everyone would have freaked out to pay $40K for a focus.

Fordracing200

yah what is up with your 15% sales tax. Jeez. We have 10% here. It stinks

mr-mstng

Go Here and you can see that from July thru September the exchange rate was ~ 1.30 which works out perfectly to the $25K/$32.5K rate.

Domainer

You are forgetting the fact that every bank makes a percentage when someone exchanges money whether they are buying in canadian or american dollars. They won't exchange money on exact currency models. However, for big company accounts, the currency exchanges they make is set at market levels..

With that said, my initial post was based on the xe.com model anyways. So the numbers hold true.

I am not here to nitpick, I would gladly pay $5k more for the car since I love it so much .I am just curious why for other american model cars other than the mustang, the currency exchange regarding the msrp is more set to current market trends.

I thought the issue was worth bringing up as I have heard this from other canadian car buyers as well..

426H

This guy knows what he is talking about. The Canadian $ has appreciated against the USD and the prices has not been adjusted. Right now ford canada is making too much money imo!

Domainer

Read in my last post how other american models have set their canadian msrp pricing to current exchange valuations.

Domainer

No, that's what this board is for ! LOL

And like I stated in my initial post, i am not really complaining as I love the car and the price hike is fine by me ( although it may not be for others) .. I brought this up to raise discussion about the topic and it seems to be moving well.

Galaxie

Rob, for sure, I would be estatic to save $2000 of MSRP because of market adjustment. I wish there was something we can do about it.

I am thinking that Ford of Canada believes that the US dollar will bounce back.

The last thing car companies in Canada want is to anger customers by raising/lowering the prices every month for "currency adjustment"

If I didn't have to finance I would probably look at buying a car in Buffalo,

mr-mstng

Yes, the bank makes some money on exhanges, but its not like those at a hotel or other 3rd parties. I might be mistaken, but I think they usually go by the closing rate of the day before (unless there is a drastic market fluctuation).

With the USD taking a nosedive, they might have to readjust in the future, but as long as people are snapping them up, Ford of Canada isn't in too much of a hurry to change it.