Forum Discussion

cvbdsl's avatar
cvbdsl
Explorer
Feb 26, 2017

Canadian prices too high on used units? Cheaper to import?

Ok, this applies to us living north of the border. I'm starting to get frustrated with a lot of Canadian dealers, especially in Ontario. Long-winded post so please bear with me.

When I'm looking (as I'm seriously doing this week) I use the NADA low and average retail as aguide- stress guide and 30% added for the CAD dollar difference. However dealers seem to be adding 40-50% on to their prices with a take it or leave it attitude.

So my question is, is it getting to the point where I can bring a MH into Canada cheaper myself?

Here is my thought process on how the dollars work out. Same theoretical motorhome in Canada and US, priced at $100K USD in the US and should be priced at $130K in CAD using NADA as a guide.

If I buy in the US I loose any sales tax credit on my trade so I'm thinking it works as follows;

Buy in the US (using an exchange rate of 30%)
Asking price $100K USD
Maybe get $45K USD in trade (taking $5K of off NADA low)
I pay $55K USD or or roughly $71,500 CAD
Add sales tax of $16,900K CAD (13% on the full value in CAD - $130K)
Total cost before any misc fees for import $88,400 CAD

Buying in Canada ideal price
So asking price $130K CAD (assuming realistic markup)
Maybe $45K CAD in trade (even though avg NADA is more like 58K)
I pay $85K CAD plus
sales tax on $85K = $11,505 CAD
Total cost should be = $96,505 CAD


OK, a $8100 CAD difference cheaper in the US based on NADA average.
(The trade in value above in CAD is based on current discussions with lowball dealers offer not NADA average with 30% )


Based on what I've been looking at Canadian dealers are not using NADA average (though they actually say they use it), actual asking price on the MH in Canada for a $100K USD MH is usually around $150K, so potentially I can save $20K going to the US right of the bat.

Actual example on a MH I asked a dealer about. NADA plus 30$ put it at $179K CAD, dealer told me it was $220K CAD. Where did the extra $40K come from? Oh yeah, he told me a tag cost $80K more than non-tag, even used.

So is anyone else thinking of going this route? Also any idea on the import cost? I know there will be at least a couple of grand extra.

Any flaws in my thinking?

Ok, end of my rant.

thanks

Chris