Comments on: Toyota Slashes Canadian Prices to Reflect the “New Normal” http://www.thetruthaboutcars.com/toyota-slashes-canadian-prices-to-reflect-the-new-normal/ The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Sun, 22 Nov 2009 19:09:02 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Swervin http://www.thetruthaboutcars.com/toyota-slashes-canadian-prices-to-reflect-the-new-normal/comment-page-1/#comment-112492 Swervin Tue, 05 Feb 2008 03:30:52 +0000 http://www.thetruthaboutcars.com/news-blog/toyota-slashes-canadian-prices-to-reflect-the-new-normal/#comment-112492 mel23 I was commenting on the other thread but thought I would add my two cents here. I think that is a point that is often left out of the discussion. The cost and the price of the vehicles to canadians did not increase relative to there income. The strength of our dollar increased as the strength of the U.S dollar decreased. The manufacturers set a price point for the market and I believe they are loathe to move it too quickly. As I said on the other thread I think prices will and should come down. It is only matter of time. mel23

I was commenting on the other thread but thought I would add my two cents here. I think that is a point that is often left out of the discussion. The cost and the price of the vehicles to canadians did not increase relative to there income. The strength of our dollar increased as the strength of the U.S dollar decreased.

The manufacturers set a price point for the market and I believe they are loathe to move it too quickly.

As I said on the other thread I think prices will and should come down. It is only matter of time.

]]> By: mel23 http://www.thetruthaboutcars.com/toyota-slashes-canadian-prices-to-reflect-the-new-normal/comment-page-1/#comment-112282 mel23 Tue, 05 Feb 2008 01:26:05 +0000 http://www.thetruthaboutcars.com/news-blog/toyota-slashes-canadian-prices-to-reflect-the-new-normal/#comment-112282 Back when the C$ was seriously tanked, low 60s US cents, it amazed me how cheaply the car manufacturers were selling the stuff up there in terms of US currency. Otherwise, their sales would have followed the currency. Down. From that perspective, they're just getting even with what's going on now. Way off topic, I was just driving through a Toyota dealer's lot today. Monday, overcast with light drizzle, no customer traffic visible. A poor lonely salesman came walking up to my vehicle so I stopped. After talking awhile, out of the blue he asked me if I wanted to drive a Tundra. We hadn't even been talking about Tundras. "Hell yes"!. So I got to drive a 5.7L Tundra. Very nice indeed. I had made it plain I wasn't buying anything, but he just wanted to have some fun. And maybe get warm. Back when the C$ was seriously tanked, low 60s US cents, it amazed me how cheaply the car manufacturers were selling the stuff up there in terms of US currency. Otherwise, their sales would have followed the currency. Down. From that perspective, they’re just getting even with what’s going on now.

Way off topic, I was just driving through a Toyota dealer’s lot today. Monday, overcast with light drizzle, no customer traffic visible. A poor lonely salesman came walking up to my vehicle so I stopped. After talking awhile, out of the blue he asked me if I wanted to drive a Tundra. We hadn’t even been talking about Tundras. “Hell yes”!. So I got to drive a 5.7L Tundra. Very nice indeed. I had made it plain I wasn’t buying anything, but he just wanted to have some fun. And maybe get warm.

]]> By: oldguy http://www.thetruthaboutcars.com/toyota-slashes-canadian-prices-to-reflect-the-new-normal/comment-page-1/#comment-112272 oldguy Tue, 05 Feb 2008 01:20:31 +0000 http://www.thetruthaboutcars.com/news-blog/toyota-slashes-canadian-prices-to-reflect-the-new-normal/#comment-112272 Toyota has been selective with their "price cuts." A Prius has an MSRP of $29500 + $1240 freight in Canada, and even the Camry LE is $25900 + 1240 freight. Even though there is a $2500 cash rebate on the Camry, there is still a $2500 plus variance. When contacted about this, and the possibility of bringing in a US car, Toyota Canada had this response: “For your information, it is our understanding that Toyota dealerships in the U.S. are not authorized to sell Toyota motor vehicles to customers located outside the U.S. or to sell Toyota vehicles for re-sale or use outside the United States. The manufacturer's warranty (regardless of whether it is a US Toyota vehicle or a Canadian Toyota vehicle) is honoured in continental USA and Canada." Toyota has been selective with their “price cuts.” A Prius has an MSRP of $29500 + $1240 freight in Canada, and even the Camry LE is $25900 + 1240 freight. Even though there is a $2500 cash rebate on the Camry, there is still a $2500 plus variance. When contacted about this, and the possibility of bringing in a US car, Toyota Canada had this response: “For your information, it is our understanding that Toyota dealerships in the U.S. are not authorized to sell Toyota motor vehicles to customers located outside the U.S. or to sell Toyota vehicles for re-sale or use outside the United States. The manufacturer’s warranty (regardless of whether it is a US Toyota vehicle or a Canadian Toyota vehicle) is honoured in continental USA and Canada.”

]]> By: Blunozer http://www.thetruthaboutcars.com/toyota-slashes-canadian-prices-to-reflect-the-new-normal/comment-page-1/#comment-112262 Blunozer Tue, 05 Feb 2008 01:19:15 +0000 http://www.thetruthaboutcars.com/news-blog/toyota-slashes-canadian-prices-to-reflect-the-new-normal/#comment-112262 Not even close to parity. Still, its a step in the right direction. Hopefully Honda will follow suit, maybe even try to "one-up". So far Chrysler seems to be the only company <strike>desperate</strike> fair enough to have almost identical to U.S. pricing, and even then, its only on new products (Patriot, Calibre etc) Of course, their other products have rebates up the wazoo. Not even close to parity. Still, its a step in the right direction. Hopefully Honda will follow suit, maybe even try to “one-up”.

So far Chrysler seems to be the only company desperate fair enough to have almost identical to U.S. pricing, and even then, its only on new products (Patriot, Calibre etc)

Of course, their other products have rebates up the wazoo.

]]> By: CSJohnston http://www.thetruthaboutcars.com/toyota-slashes-canadian-prices-to-reflect-the-new-normal/comment-page-1/#comment-112082 CSJohnston Mon, 04 Feb 2008 23:46:39 +0000 http://www.thetruthaboutcars.com/news-blog/toyota-slashes-canadian-prices-to-reflect-the-new-normal/#comment-112082 Lowering MSRP's is great but at the end of the day, if someone can pay less for a competitive product with a higher MSRP with a lower net payment then they will opt for the lower payment. Lower MSRP also has nothing to do with actual retail prices unless there is a corresponding lowering of invoice costs. If invoice costs have remained static then all this has done is lower dealer margins to offset things like trade-in values and negotiating room. But this is Toyota, they aren't big on negotiating anyway. Lowering MSRP’s is great but at the end of the day, if someone can pay less for a competitive product with a higher MSRP with a lower net payment then they will opt for the lower payment. Lower MSRP also has nothing to do with actual retail prices unless there is a corresponding lowering of invoice costs. If invoice costs have remained static then all this has done is lower dealer margins to offset things like trade-in values and negotiating room.

But this is Toyota, they aren’t big on negotiating anyway.

]]> By: SkiD666 http://www.thetruthaboutcars.com/toyota-slashes-canadian-prices-to-reflect-the-new-normal/comment-page-1/#comment-111872 SkiD666 Mon, 04 Feb 2008 22:39:04 +0000 http://www.thetruthaboutcars.com/news-blog/toyota-slashes-canadian-prices-to-reflect-the-new-normal/#comment-111872 It's a little bit of smoke and mirrors, the prices have decreased a little, but nothing major. example: Sienna CE Jan. 31 - $31,750 - $1500 incentive = $30,250 Feb. 1 - $29,400 Savings = $850 (3%) However, there is still an $8,000 price difference between the US invoice price and Canadian MSRP (dealers aren't gonna budge from MSRP now) It’s a little bit of smoke and mirrors, the prices have decreased a little, but nothing major.

example: Sienna CE
Jan. 31 – $31,750 – $1500 incentive = $30,250
Feb. 1 – $29,400

Savings = $850 (3%)

However, there is still an $8,000 price difference between the US invoice price and Canadian MSRP (dealers aren’t gonna budge from MSRP now)

]]> By: Guzzi http://www.thetruthaboutcars.com/toyota-slashes-canadian-prices-to-reflect-the-new-normal/comment-page-1/#comment-111812 Guzzi Mon, 04 Feb 2008 22:20:39 +0000 http://www.thetruthaboutcars.com/news-blog/toyota-slashes-canadian-prices-to-reflect-the-new-normal/#comment-111812 Toyota can likely afford near-parity. Others, well some can, some can't, but the first domino has fallen. It's a stunner of a move that only they could have done first. Who'snext? Toyota can likely afford near-parity. Others, well some can, some can’t, but the first domino has fallen. It’s a stunner of a move that only they could have done first. Who’snext?

]]> By: AGR http://www.thetruthaboutcars.com/toyota-slashes-canadian-prices-to-reflect-the-new-normal/comment-page-1/#comment-111712 AGR Mon, 04 Feb 2008 22:02:04 +0000 http://www.thetruthaboutcars.com/news-blog/toyota-slashes-canadian-prices-to-reflect-the-new-normal/#comment-111712 Manufacturers in Canada were in denial in Sept/Oct 2007 to then offering all sorts of rebates, incentives, deals not to go shop in the US which lasted till the end of 2007. The concensus was that lowering MSRP's was going to have a negative impact on residuals, with leasing being very popular in Canada. January 2008 was close to a record month in Canadian sales and "sales management" on the part of manufacturers. The second best January in history with most manufacturers having an appreciable increase in sales, Honda had an over 60% increase, which surely did not go unnoticed by Toyota. Toyota executes a brilliant strategy in lowering MSRP's gaining a market advantage, and putting all the other manufacturers on notice. Manufacturers in Canada were in denial in Sept/Oct 2007 to then offering all sorts of rebates, incentives, deals not to go shop in the US which lasted till the end of 2007.

The concensus was that lowering MSRP’s was going to have a negative impact on residuals, with leasing being very popular in Canada.

January 2008 was close to a record month in Canadian sales and “sales management” on the part of manufacturers. The second best January in history with most manufacturers having an appreciable increase in sales, Honda had an over 60% increase, which surely did not go unnoticed by Toyota.

Toyota executes a brilliant strategy in lowering MSRP’s gaining a market advantage, and putting all the other manufacturers on notice.

]]> By: jazbo123 http://www.thetruthaboutcars.com/toyota-slashes-canadian-prices-to-reflect-the-new-normal/comment-page-1/#comment-111582 jazbo123 Mon, 04 Feb 2008 21:38:54 +0000 http://www.thetruthaboutcars.com/news-blog/toyota-slashes-canadian-prices-to-reflect-the-new-normal/#comment-111582 Please note the effect sales volumes have on electronics. Should cars be any different? If Canadians want the same prices, they just need to buy 10X as many cars. Digi-Key Part Number 296-1628-5-ND Logic chip QuantityUnit Price 1 - 0.56000 25 - 0.42000 100 - 0.31500 250 - 0.23240 500 - 0.19600 1,000 0.18620 5,000 0.17850 Please note the effect sales volumes have on electronics. Should cars be any different? If Canadians want the same prices, they just need to buy 10X as many cars.

Digi-Key Part Number 296-1628-5-ND

Logic chip

QuantityUnit Price
1 – 0.56000
25 – 0.42000
100 – 0.31500
250 – 0.23240
500 – 0.19600
1,000 0.18620
5,000 0.17850

]]> By: Kurt B http://www.thetruthaboutcars.com/toyota-slashes-canadian-prices-to-reflect-the-new-normal/comment-page-1/#comment-111532 Kurt B Mon, 04 Feb 2008 21:31:32 +0000 http://www.thetruthaboutcars.com/news-blog/toyota-slashes-canadian-prices-to-reflect-the-new-normal/#comment-111532 You hit the nail on the head. Nice to see some movement..but it's not parity. You hit the nail on the head. Nice to see some movement..but it’s not parity.

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