Canadian customers getting shafted when buying E320's

[Spartan]

Amazingly, Canadian customers are the getting bent over when it comes to pricing by Mercedes Benz. As an example: E320 CDI is $74,400 Cdn. in Canada and $65,205 Cdn. in the US. A difference of 14% HIGHER COST for Canadian customers. It not as bad in the other models where Canadians pay "only" an 8% spread or the M-class where there is "only" 9%. Why are Canadian customers paying a higher price for the E-class then in the US? Does Mercedes think that it's fair to shaft their Canadian customers? It's not bad enough that we have to put up with a product that is only a shadow of it's past in reliability but we also have to put up with an extra dose of price gouging. http://www.x-rates.com/ http://www.mercedes-benz.ca/index.cfm?id=3637 http://www.mbusa.com/brand/models/E320CDI.jsp

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[BudC]

How about Japanese cars? How do they compare in price? Or Audi, BMW, VW, etc.

[HELL ONA HARLEY]

Originally Posted by Spartan

It's not bad enough that we have to put up with a product that is only a shadow of it's past in reliability but we also have to put up with an extra dose of price gouging.

Yea... Its seems unfair for sure, but I don't understand the market there so I won't comment on that aspect of your complaint. That being said, I will say you don't have to "put-up" with anything really..... Simply don't buy the car and buy something else... Perhaps if enough Canadians do this they will see the light.

[amdeutsch]

And how much of that price is hidden taxes and fees imposed by your government?

[BudC]

There are two things to consider. First of all is the value of the Canadian dollar in relation to the Euro. To buy a car that costs 50,000 Euros takes $79,118 CDN.

It takes far less U.S. dollars to buy that 50,000 Euro car ($62,757).

Also, the Canadian dollar isn't equal to the U.S. dollar, it's only worth .79231 of the U.S. dollar.

If the Canadian dollar had the same value against the Euro as the U.S. dollar, the car that cost $62,757 in the U.S. would cost $79,202 CDN. However, when you factor in the value these currencies have against the Euro, the difference is actually quite a bit more than that.

So you not only have to consider the relationship between the U.S. dollar and the Canadian dollar, you also have to consider the value of these currencies compared to the Euro.

[Spartan]

Originally Posted by amdeutsch

And how much of that price is hidden taxes and fees imposed by your government?

The government has another shafting that they call the GST (Goods & Services Tax). As far as I know, the only taxation is the GST and it is not hidden.

Mercedes has systematically bought up all the franchises and is now selling DIRECTLY to the public. Their stated reason was that it would help them give the consumer a better deal by cutting out the middle man. In reality, their sole intent was to control the market for their car and eliminate the pressure from their remaining dealers to sell at market value.

As long as the public is NOT aware of their practices, they will do what they can to screw a few extra dollars from their Canadian customers.

[Spartan]

Originally Posted by BudC

There are two things to consider. First of all is the value of the Canadian dollar in relation to the Euro. To buy a car that costs 50,000 Euros takes $79,118 CDN.

It takes far less U.S. dollars to buy that 50,000 Euro car ($62,757).

Also, the Canadian dollar isn't equal to the U.S. dollar, it's only worth .79231 of the U.S. dollar.

If the Canadian dollar had the same value against the Euro as the U.S. dollar, the car that cost $62,757 in the U.S. would cost $79,202 CDN. However, when you factor in the value these currencies have against the Euro, the difference is actually quite a bit more than that.

So you not only have to consider the relationship between the U.S. dollar and the Canadian dollar, you also have to consider the value of these currencies compared to the Euro.

Huh?

This has nothing to do with Euro's but everything to do with the price of the car being 14% higher then it's available from the US. I can travel to the US and buy the same car and have $10,000 left over in MY POCKET. Even though it's the same car, Mercedes will NOT warranty my car in Canada even though it's the same product from the same factory.

Other then a few very minor differences, the warranty is the lever they use to keep the market under CONTROL.

[Spartan]

Originally Posted by HELL ONA HARLEY

Yea... Its seems unfair for sure, but I don't understand the market there so I won't comment on that aspect of your complaint. That being said, I will say you don't have to "put-up" with anything really..... Simply don't buy the car and buy something else... Perhaps if enough Canadians do this they will see the light.

I am still a loyal but perhaps foolishly so. IF more knew about it and protested, then they would not think they could get "away with it".

As for buying another Mercedes? If their current quality problems do not disappear, I and many more other customers will disappear........

[Nevada Jack]

Originally Posted by Spartan

Huh?

This has nothing to do with Euro's but everything to do with the price of the car being 14% higher then it's available from the US. I can travel to the US and buy the same car and have $10,000 left over in MY POCKET. Even though it's the same car, Mercedes will NOT warranty my car in Canada even though it's the same product from the same factory.

Other then a few very minor differences, the warranty is the lever they use to keep the market under CONTROL.

After you buy the car in the US, would you not have to pay the Canadian GST or whatever they call it of 15% when you take the car into Canada? It appears to me the Canadian price reflects the 15% tax...?

[TPAbnz]

Other items are included in the Canadian model as standard or have been de-contented in the US:

Metallic Paint is standard, $680 US, $861 CDN
Full Premium Leather is standard, $1,500 US, $1,899 CDN
Puddle lights are standard, de-contented for US.

I'm sure there are other differences too.

[BudC]

You still haven't answered my question. How about Japanese cars or other European cars? Is it just Mercedes that you find overpriced?

[Spartan]

Originally Posted by BudC

You still haven't answered my question. How about Japanese cars or other European cars? Is it just Mercedes that you find overpriced?

I don't know. I have not looked into them basically because I normally buy Benz or Porsche. Besides, Mercedes always claims to be a company above the rest so they should do the right thing, the fair thing.

[Spartan]

Originally Posted by TPAbnz

Other items are included in the Canadian model as standard or have been de-contented in the US:

Metallic Paint is standard, $680 US, $861 CDN
Full Premium Leather is standard, $1,500 US, $1,899 CDN
Puddle lights are standard, de-contented for US.

I'm sure there are other differences too.

If this is true, then it should expalian SOME of the difference. But there is also another factor. It is almost impossible to negotiate a substantial deal with their dealer network. Since they own the majority of them and demand that dealers stay within their territory (or else), they can control the pricing and the discounts.

I read that there is as much as several thousand dollar discount in some US E-class purchases. The best I could muster was $1,500.

[Spartan]

Originally Posted by Nevada Jack

After you buy the car in the US, would you not have to pay the Canadian GST or whatever they call it of 15% when you take the car into Canada? It appears to me the Canadian price reflects the 15% tax...?

You pay the GST at the point of purchase or the point of entry. Regardless, the GST is paid on the value of the purchase. If I bought the car for less in the US then I would pay correspondingly less tax (it's 15% tax).

Yes, my self serving corrupt government will make sure they chain saw their pound of flesh regardless of where I buy the car.

[HELL ONA HARLEY]

Originally Posted by Spartan

Yes, my self serving corrupt government will make sure they chain saw their pound of flesh regardless of where I buy the car.

For the most part it sounds like your complaining to the wrong folks....

[Nevada Jack]

What I was saying is that the difference in the prices you site is about 15%...are you sure the Canadian price you site does NOT include the GST?