Looking to import from US

333 4 ME · 03-22-2011, 08:22 PM

Markup on a brand new car is in the 6-9% range from factory invoice...this is average. However, dealers will always get a kickback from the Manufacturer of about 2% MSRP to ensure they make something on the sale even if they sell the car at MSRP. Plus they charge you an arm and a leg for Freight and PDI in this country - about 1800 or so, when really it only costs them about 3-400 per car. So now they have made over 2 Gs on a car that sold at a 35k MSRP.

Oh also, dealers get kickbacks from the manufacturer for meeting certain sales targets which is another revenue stream on new car sales. Aside from that, dealers also make their money by selling add ons (tint, rust proofing), extended warranties from 3rd parties, accessories (which are marked up huge), and of course the biggest of them all, service.

One thing you have to consider when importing vehicles that are not NAFTA exempt is that the 6.1 duty is also subject to tax. So the calculation is Vehicle Price in US * Conversion Rate * 6.1% * Provincial/Federal Sales Tax + all the other fees for importing the car.

Also, buying in the US doesn't give you the option to lease the vehicle, which means you have to pay cash up front or finance through a bank loan, which typically doesn't offer as good an interest rate as through dealer financing.

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03-22-2011, 08:22 PM	#23 (permalink)
333 4 ME Base Member Join Date: Mar 2011 Location: Toronto Posts: 1 Drives: G37 Rep Power: 15	Markup on a brand new car is in the 6-9% range from factory invoice...this is average. However, dealers will always get a kickback from the Manufacturer of about 2% MSRP to ensure they make something on the sale even if they sell the car at MSRP. Plus they charge you an arm and a leg for Freight and PDI in this country - about 1800 or so, when really it only costs them about 3-400 per car. So now they have made over 2 Gs on a car that sold at a 35k MSRP. Oh also, dealers get kickbacks from the manufacturer for meeting certain sales targets which is another revenue stream on new car sales. Aside from that, dealers also make their money by selling add ons (tint, rust proofing), extended warranties from 3rd parties, accessories (which are marked up huge), and of course the biggest of them all, service. One thing you have to consider when importing vehicles that are not NAFTA exempt is that the 6.1 duty is also subject to tax. So the calculation is Vehicle Price in US * Conversion Rate * 6.1% * Provincial/Federal Sales Tax + all the other fees for importing the car. Also, buying in the US doesn't give you the option to lease the vehicle, which means you have to pay cash up front or finance through a bank loan, which typically doesn't offer as good an interest rate as through dealer financing.