[LBJay]

Open question I am addesssing with MNAO:

My opening E-mail:

I would like an explantion how Mazda Canada can sell (MSRP) the same
car, built in the same plant, for over $3000 (USD) less. Or the question
I should be asking is, why did you charge me thousands of dollars more
for my new US 6s then the same car in Canada??????????


MNAO Responce: #1

Thank you for contacting Mazda North American Operations. I appreciate
the opportunity to respond to you.

In regards to your e-mail, I am unsure of the business practices of
Mazda Canada. I will happily have this question researched for you, and
will update you as soon as I receive a reply.

In the meantime, I'd be glad to send you a couple Zoom-Zoom stickers
for your two Mazda's! Just let me know if you're interested, and I'll
pop them in the mail.

MNAO Responce #2

I've just received information regarding your MAZDA6 pricing questions.
Please understand that Mazda Canada and Mazda North American Operations
are two separate business entities. Each sets their own pricing; thus
Mazda Canada is free to decide MSRP for their vehicles. Please also
keep in mind that warranty coverage is less in Canada, and that there
are no loaner car programs in Canada as well. These are both factors in
deciding MSRP.

I hope this helps.

My responce:

Ashley,

Sorry, this explanation is far from satisfactory. $3,000 for a one year extension on warranty and loaner cars is absurd and an insult to someone's intelligence to even suggest it.

I know you are just a messenger. Is there someone at a higher MOA corporate level that I can seek further explanation from.

I am on several Mazda6 and Mazda Brand specific Forums on the internet and I will be posting my concerns there also.

-----------------------------------------------------------------------------------------

Unless Mazda Canada is selling a Mazda6 at a huge loss per car I think US customers are being raked over the coals.

Comments?

 

[Absolut]

Reading Topic: Is Mazda gouging US customers?

This is a very good topic to bring up.. I would be very interested in hearing more responses from Mazda on this issue as it will concern a good number of people in here.

 

[Kincaid]

Reading Topic: Is Mazda gouging US customers?

I'm with you on that. Hard for me to do anything in your favor though as I am Canadian. But I can agree with your point

 

[wongpres]

Reading Topic: Is Mazda gouging US customers?

The reason Canadian car prices are much lower than the US is because we have much more tax to pay (15% here in Ontario); and our average incomes (after currency conversion) is much lower than the US.

There's a great article about this from DesRosiers, a Canadian auto consulting group, that will completely answer this question:
http://www.desrosiers.ca/20026/2002-6.pdf

 

[MAZDA 6 FREAK]

Reading Topic: Is Mazda gouging US customers?

Yup, WONGPRES is right...

You have to add USA price with all fees and taxes. Then, do the same thing for the Canadian price. You'll see the difference is really small.

 

[LBJay]

Replying to Topic 'Is Mazda gouging US customers?'

Not even close in this case:

QUOTE

How can MSRPs be so much lower in Canada while relative transaction prices appear to be much higher? First, in order to keep MSRPs lower, the OEMs generally offer vehicles with fewer options and lower content in Canada. Consumers have to purchase these options in Canada, thus increasing the final transaction price. These options are often included in base prices in the U.S.[/b]

Not true in this case. In fact with the cars I compared, the Canadian version has more standard. Price a GT-V6 and a US Mazda6 with the same options, but note that the 17" wheels standard on the GT-V6 are not even an option on a non-Sport US 6.

QUOTE

Canada also has a seven percent GST added to the MSRP whereas in the U.S.
their federal sales tax is included in the MSRP.[/b]

There is no US federal sales tax. All other taxes vary by local and should be of no concern to Mazda.

QUOTE

It is important to understand the methodology I used to come up with these price differences because the analysis has some serious limitations. The problem arises from the fact that virtually every vehicle sold in Canada is different from its sister vehicle in the U.S. Most of these differences relate to different equipment levels in Canada
and/or option packages on base model vehicles in each market. But some also relate to different regulatory standards in each country. For example, we have metric, the U.S. has
imperial, we have different bumper standards, seat-belt standards, child safety seat anchorage, rear mounted tail lamps, and labelling standards.[/b]

All factors that should cause an increase in price not a lowering.

If the price difference was in the $1000 or less range I could understand. (Market price points and all things such) But over a $3000 difference!!!! Mazda tells it's US dealers that that there is only so much margin they give but yet they have $3000+ to play with in Canada?

Is Mazda using my US dollars to support sales in Canada? Are Canadians taxed so much that they are too poor to pay for their own cars?

 

[MAZDA 6 FREAK]

Reading Topic: Is Mazda gouging US customers?

Ok, then come and buy it in Canada!!!

 

[wongpres]

Reading Topic: Is Mazda gouging US customers?

MAZDA 6 FREAK brings up a very good point. Because of the different option packaging (mainly regarding getting the 17 inchs); over on Edmunds, many Americans were investigating buying in Canada. But no one has actually done it yet.

LBJay, yes in the case of the Mazda6, I admit the overall price is lower in Canada. But don't forget some of our disadvantages in this case as well. Aside from China, Canada is the last market to get the Mazda6. The first shipments just came in last week! Right now, I am praying so much that they don't do this with the car I'm going to buy (Mazda3).

BTW, relating to the much smaller amount of disposable income Canadians have, the Mazda2 is coming to Canada! The compacts are the best-sellers here, whereas the mid-sizes are the best sellers in the US.

 

[Blackbird]

Reading Topic: Is Mazda gouging US customers?

The 6i in the states seems to be on the same price level as the ones we have in Sweden - though our cars are shiped from Japan to here! Thats a cost + we have headlight washers installed as standard.

 

[MazdaForLife]

Replying to Topic 'Is Mazda gouging US customers?'

Although the cost of manufacturing the car is the major factor in setting the price, it is not the only one. It also depend on offer and demand, the consumers capability to pay for the car on that particular market,etc.

For example a piece of clothing may be sold 3x its manufacturing cost in one market because the company judge that people of that market want that piece of clothing and can afford to pay for it. So the price is fixed that high. The same item sold in a different market might be half price. It is up to the company to study the market and set the price so they can maximize their profit. It is what company are about ... making money. In that model, you have to exclude any additional tax (at custom) that a country may put on some item to protect its local industry.

Visit a store in your own town that target tourisms. You will find locally manufactured item at x time the cost you can buy two block further down the street. Look at airport how everything is more expensive. All that is the result of the offer and demand of that perticular local market.

I can only conclude that Mazda Canada can not afford to set the price as high as Mazda USA. Nothing to do about subsidizing the other market.

On a less rational point of view, American like to brag how they are rich, than now it is time to show it and pay for it (Oh!)

 

[MazdaForLife]

Replying to Topic 'Is Mazda gouging US customers?'

I forgot to be specific on one item. When I was taking about the price set by the company, in this cas (Mazda); is the price to which the car is sold to the dealer. So at the dealer level, the profit margin is probably the same for US and CND dealers.

To answer the initial question: Is Mazda gouging US customers? I will have to answer yes. As a result this is a nice exemple of true capitalism (which USA excels at). Capitalism is only great when you are on the right side of the fence (hops! again).

 

[applejax]

Reading Topic: Is Mazda gouging US customers?

Living in the US, this bothers me as well. I've seen other companies change prices due to markets, and it annoys me. I've had experiences with other companies such as Amazon - they change their prices corresponding to demand (I watched a DVD go from $13 to $20 in a week).

Marketing can be complex - things may be sold at a loss for a multitude of reasons, but I doubt that Mazda is taking a loss on the '6 in Canada, and therefore there should be no reason for a price difference.

Of course, the impression I am getting is that this is all based on MSRP. Is there a comprable increase in invoice?

 

[Hiro11]

Replying to Topic 'Is Mazda gouging US customers?'

QUOTE

Originally posted by MazdaForLifeAs a result this is a nice exemple of true capitalism (which USA excels at).  Capitalism is only  great when you are on the right side of the fence (hops! again).[/b]

I know you're probably kidding, but dammit, I'm going to take issue with this. Without turning this into a ridiculous political flamewar, capitalism has to do with efficient markets. An efficient market brings uniform pricing. Therefore, this is not a result of "capitalism".

Also, just because US people make more money (this is not bragging as you say, it's simply a statement of fact) does not mean that we should pay more for cars.

 

[CVette]

Reading Topic: Is Mazda gouging US customers?

<Insert discussion on Canadian prescription drugs cheaper than US prescription drugs here>

 

[LBJay]

Replying to Topic 'Is Mazda gouging US customers?'

QUOTE

Originally posted by applejaxOf course, the impression I am getting is that this is all based on MSRP.  Is there a comprable increase in invoice?[/b]

The Mazda CA MSRP for a fully loaded 6 is over $2000 below US dealer's invoice price.

 

[ChoppaBoy]

Replying to Topic 'Is Mazda gouging US customers?'

QUOTE

Originally posted by LBJay


            QUOTE

Originally posted by applejaxOf course, the impression I am getting is that this is all based on MSRP.  Is there a comprable increase in invoice?[/b]

The Mazda CA MSRP for a fully loaded 6 is over $2000 below US dealer's invoice price. [/b][/quote]

that is insane, i feel ripped but in all honesty, theres nothing u can do about it outside of buying the car in canada

 

[LBJay]

Reading Topic: Replying to Topic 'Is Mazda gouging US customers?'

Ahh, but there is a catch to that. The stories I read said that gray market cars could have problems with warranty service in the US.

 

[applejax]

Reading Topic: Replying to Topic 'Is Mazda gouging US customers?'

But does importing a car make it gray market? I wouldn't think so as long as you follow due procedure?

 

[Guest]

Replying to Topic 'Is Mazda gouging US customers?'

QUOTE

Originally posted by LBJay
Is Mazda using my US dollars to support sales in Canada? Are Canadians taxed so much that they are too poor to pay for their own cars?  [/b]

No and Partially Yes.

Mazda USA and Mazda Canada are seperate entities as stated earlier, one charging more for a car doesn't mean it supports the other seperate company.

As for Taxes, in the 2 main provinces of Ontario and BC you are looking at adding roughly 20% on top of MSRP for the car. Factor in the fact that these 2 provinces and the Feds have taxes on everything such as AC or luxury (sp?) models. No idea about Quebec.

You're probably getting gouged to some extent, but its not because of Canadian Buyers. As it stands we buy significantly fewer vehicles than Americans.

A V6 base model at 28K will end up upwards of 10K higher once you factor in taxes and some options/loaded. SUVs can go 10K+ once loaded up and then taxed.

It isn't cheap buying a car here, and financing is just ridiculus. If you're on top of your game you're looking at trading in a used car and saving up a good portion for a down payment. 3-5 year financing is extremely high, factor insurance costs and there are people paying close to 1K a month or possibly more in car+insurance monthly payments.

These are high credit purchasers and they still get hammered. Avoding this means going with a lease option, cheaper payments but its only good if thats your thing. And Leasing is something becoming more common due to the overall purchase costs of vehicles.

EDIT: In any case, if a yank finds it cheaper to buy up here, import and operate a car down there, then do it. Be interesting to see more people actually come here and then try to import it back into the US. Im sure you'll have fun dealing with the import/export taxes involved.

 

[CVette]

Replying to Topic 'Is Mazda gouging US customers?'

QUOTE

Originally posted by Divman
there are people paying close to 1K a month or possibly more in car+insurance monthly payments.[/b]

Holy crap.