Many Canadian retailer always cite this as the reason when ask to slash their price when Canadian Dollar cross parity. But how they explain most of the them see their profit go up during the period CAD parity.
The truth is the total number of automobile in Canada maybe only second to US, most car manufacturer consider North America market as whole. not separate one. Canadian Market maybe vast, but rather concentrate around several big cities.
Also considering those cars actually made here in Canada, hard to believe the price should be cheaper cross the border.
Canadian auto regulation are more similar to European one. Many car maker roll out their newest model in Canada to test the water. Eg. SMART car. Giving the lower take home income in Canada, higher selling price from car maker does not make sense.
This only impact cars made in US or import from US. How about those cars import from Japan/Europe? Strong Canadian dollar should mean lower price, benefiting Canadian consumer.
So what is the other factor or main factor? Is this SFU商學院的經濟學教授 wanna mention the competition environment in Canada as whole? How many car dealership Jim Peterson have in Vancouver area? How many media group we have in Canada ( this is for Auto Advertisment)? How come Edmunds.com could provide invoice price for US consumer totally free while Canadian can't?
Compare to US, Canadian live around several big cities. 3 major cities all are very accessible. Commercial real estate and labor cost are also very very low compare to US This are 2 largest cost for dealership.
It's always interesting to notice who are those people on the Richest list and what business they are in. No american dealership owner made that list as far as I remember.