Leasing, financing, and paying cash? Volvo Canada wants to give you a deal. Today’s Canadian dollar is worth about $1.07 USD, and says Volvo Cars of Canada CEO Steve Blyth, “We realize Canadians are looking to the US market and comparing prices of vehicles with the same nameplate.”
And that’s a problem for every Canadian consumer right now. Volvo’s most inexpensive vehicle is almost $5,000 cheaper in the States. Blyth wants to remind Canadians however, that “they also notice that Canadian Volvo vehicles have a longer list of standard equipment, a more comprehensive warranty offer and a retailer network equipped with parts to service built-for-Canada vehicles.”
Not that’s he’s blind to the problem. Volvo Canada is offering some huge discounts. “… We recognize that the price is perhaps the most important factor in a purchase decision,” the CEO says. “Our plan is that this new rebate program will help customers avoid considering the added cost, hassle, time, and intricacies of importing a vehicle from south of the border.” Canadians importing an American-sold vehicle must pay 6.2% extra as an import duty. That importing cost is built into the cost of Canadian-sold Volvo’s as well as all cars from other models not built in Canada. (Volvo’s were at one time built in beautiful Halifax, Nova Scotia.)
Don’t get too hyped up on the $5,000 figure you’ll see, Canada. You won’t be saving more than $2,000 on a 2008 C30, and that involves combining the rebate and $500 worth of Loyalty Bonus if you already own a Volvo.
The best deals can be had on remaining 2007 models. That same C30, as marked ’07, has a rebate of $2,000 and a potential Loyalty Bonus of $1,000. Also, for your knowledge, base MSRP differentials from the US market to Canadian market are as follows: $16,290 for the S80, $14,785 on the XC90, XC70 at $9,720, $6,180 for V50’s, S40’s at $7,130, and $17,555 for the C70 seen below, all prices rising for the Canadian market. Although direct exchange rates apply to the importing of… basically nothing, directly applying today’s exchange rate would make the $39,240 American C70 just $36,728 in Canada, rather than $56,795. Have a look at the full roster of Volvo Canada deals below.
2007
S80 Rebate – $5,000
S80 Loyalty Bonus – $2,500
C70 Rebate – $5,000
C70 Loyalty Bonus – $1,000
C30 Rebate – $2,000
C30 Loyalty Bonus – $1,000
2008
S80 Rebate – $2,000
S80 Loyalty Bonus – $2,500
XC90 Rebate – $4,000
XC90 Loyalty Bonus – $2,000
S60 Rebate – $3,000
S60 Loyalty Bonus – $1,000
V50 Rebate – $2,500
V50 Loyalty Bonus – $750
Porsche’s drop in Canadian pricing averages around 8%. Chrysler and Ford are using heavy incentives to make up “some” of the difference. Bill Osborne, CEO of Ford in Canada, said, “We hear what people are saying – they prefer to purchase in Canada.” The Porsche discount doesn’t cover up the disparity, but do remember, Porsche customers, that 6.2% importing fee.
Porsche's drop in Canadian pricing averages around 8%. Chrysler and Ford are using heavy incentives to make up "some" of the difference. Bill Osborne, CEO of Ford in Canada, said, "We hear what people are saying – they prefer to purchase in Canada." The Porsche discount doesn't cover up the disparity, but do remember, Porsche customers, that 6.2% importing fee.