Buying Advice Canadian vs USA prices

[dreads]

I'm looking for a tractor in the 50 to 70hp range and was wondering if anyone knew a brand that had a Canadian price in the same ballpark as the USA price (before taxes)?

eg the NH website allows you to 'build your own tractor' and gives prices:

YOUR SUMMARY
T4020 UTILITY TRACTOR:- STANDARD MODEL:- ROPS
TOTAL: $44,046.45 CAD
Taxes, freight, setup and delivery not included.

Same tractor and configuration:
CONFIGURED PRICE: $32,627.00 USD
TOTAL: $32,627.00 USD
Taxes, freight, setup and delivery not included.

I understand that Canadian prices are higher but 40% higher? I'm not picking on NH, they just happened to have both prices available (at least they put Canadian prices on their website unlike most others).

Anyway, I was hoping to find a tractor brand where the price difference was smaller. Anyone know of one?

Thanks.

 

[Carl_NH]

Dont know the tractor prices but appears this is a corporate pricing position across the board as in Dell Computer hardware - a Dell Server system in the USA is $6650 and in Canada is $9950 a 30% increase all things equal and when asked they stated "these are the Canadian prices" no rationale or reason provided.

These servers are even configured and built in Canada (albeit with components sourced in USA and Asia) which have some importation fees, but 30% is outrageous as in tractors as well.

The only explanation I can surmise is companies must have a separate Canadian branch with support and services for those customers, with fewer overall customers thus lower demand so the support staff and costs per unit are higher.

This is an assumption, but IMO these policies smell of two day old fish while the Mgmt is enjoying caviar.

 

[CreekBank]

I vaguely recall, a couple of years back, that Bombardier was selling their Canadian-made Skidoo snowmobiles cheaper to dealers in the US. This was allegedly because the US dealers have higher volume. The Canadian Skidoo dealers raised quite a stink about this when their Canadian customers started buying their snowmobiles across the border. It was cheaper to buy one in North Dakota and bring it back to Winnipeg.

 

[mrennie]

Every major purchase I have ever comparison shopped between the US and Canada has been cheaper in the US, even after factoring in the exchange. The reasoning I have always seen is that the US market has more volume and competition, thus more competitive pricing.

If it is significantly cheaper to buy in the US and ship back home, then it may make sense, but be sure to consider that many manufacturers do NOT honour warranty if the unit is bought in a different country.

 

[CinderSchnauzer]

I'm looking for a tractor in the 50 to 70hp range and was wondering if anyone knew a brand that had a Canadian price in the same ballpark as the USA price (before taxes)?
Anyway, I was hoping to find a tractor brand where the price difference was smaller. Anyone know of one?

Thanks.

Try the Deere site. A 4520 @ 60 hp is listed base US$ 28,999 and CDN$ 31,899 - about 10% difference. Keep in mind none of the companies is likely to change pricing in lock step with the US / CDN exchange rate.

 

[mjncad]

Part of the problem you are experiencing is the exchange rate, another issue is sales volume between the countries; but I've also heard that it's expensive to ship goods to Canada due to Canadian customs laws. How true that is I don't know; but I thought NAFTA was supposed to take care of that.

 

[dreads]

Thanks for the replies, I hadn't looked into JD yet but it looks good.

I just don't like the idea of paying significantly more when the exchange rates are almost at parity. The JD gap seems much more reasonable.

 

[dreads]

Thanks kubotafan, being able to buy an M-series tractor with low hours for less than 30k in the US sure is tempting (I don't need a cab).

We are thinking of buying new for the financing (we only have 15k in available cash right now) and also because it will be our first tractor.

 

[CinderSchnauzer]

Thanks for the replies, I hadn't looked into JD yet but it looks good.

I just don't like the idea of paying significantly more when the exchange rates are almost at parity. The JD gap seems much more reasonable.

You should have better luck with the exchange rate differential if you custom order, since anything sitting in dealer inventory was probably ordered before the rates changed. With JD if your store is willing to deal they can also call JD corporate and see if they are willing to help put a deal together. Probably also need factual data as to actual selling prices for US product. A couple of years back the JD warranty area was North America and I believe same for MF. If you live in Alberta don't count on getting a deal on anything

If you are looking at cross border shopping you'll need cash or Canada based bank financing. AFAIK you can't get US JD financing.

 

[CinderSchnauzer]

Part of the problem you are experiencing is the exchange rate, another issue is sales volume between the countries; but I've also heard that it's expensive to ship goods to Canada due to Canadian customs laws. How true that is I don't know; but I thought NAFTA was supposed to take care of that.

NAFTA has done a great job to create a free flow of goods across the US / Canada / Mexico border at the wholesale or manufacturer level. It's highly debatable whether significant benefits have been created at the consumer level. At one point, I had written to General Motors complaining about and asking for an explanation of the CDN / US price differential. The reply I got after decoding for the spin doctoring and BS was they charge more in Canada because they can.

Case in point, Silverado trucks made in Oshawa Ontario and then shipped to US market were model for model $6K - $10K more in Canada after adjustment for exchange rates.

 

[DGS]

NAFTA has done a great job to create a free flow of goods across the US / Canada / Mexico border at the wholesale or manufacturer level. It's highly debatable whether significant benefits have been created at the consumer level. At one point, I had written to General Motors complaining about and asking for an explanation of the CDN / US price differential. The reply I got after decoding for the spin doctoring and BS was they charge more in Canada because they can.

Case in point, Silverado trucks made in Oshawa Ontario and then shipped to US market were model for model $6K - $10K more in Canada after adjustment for exchange rates.

That is precicely why I don't care if it's foreign made anymore, if it's cheaper, has a real warantee and the price is cheaper I will buy the item whether it be a car, tractor or any other major item. After watching JD leave Welland Ont. for Mexico jobs I promised myself that that and any american brand is no longer any better or worse than any foreign one.
I will buy where my wallet tells me to from now on and buy Canadian or American be damned. For way too long the north american workers have been sacrificed for GREED plain and simple. Now it's my turn.
Sorry for the rant but it irks me to no end to hear all our poiticions tell us all that they have been doing on our behalf when what they really have been doing is padding their pockets along with big business for the last 40yrs and we and all our kids have a very bleak future job wise to show for it. Something to think about gents.
Regards
DGS

 

[flyingcow]

I've bought equipment in canada. Only when the exchange rate was in the %30 range. Yes, it was a while ago. For instance, bought a 9ft meteor snowblower for $2800, in the usa it would have been closer to $4,000.00. But that figures in getting the GST or HST back when i turned my paperwork in. This GST, I think was %18 +/-. (Goods and Service Tax.) Just recently i priced a 7ft lucknow blower, not much difference. No big exchange rate, and not really sure if I could get the GST back in a timely manner.

Back when the exchange rate was 30%, a lot of people I know purchased ATV's, snowmobiles, etc in new brunswick. A lot less money, but the only catch was if you wanted any warranty work done, you had to take it back across. But if you tried to purchase a car or pickup, the dealers would not do it. Franchise problems. Just like now, it's very hard for a canadian to buy a car over here. Plus the canadian border really looks out for their own citizens shopping over here.

Bottom line, everything in canada is more expensive, mainly because of taxes of some sort. Gallon of gas is about $1.04 a liter,about 4 liters to a gallon. Gallon of milk, about $7. I've seen pickups that cost $30,000 over here, identical set ups, cost $40,000 over there. 99cent burger here at McDonalds is $1.39 over there. Same burger.

I travel thru New Brunswick 4 or 5 times a week, nice people, but the tax man is beaten 'em down. Which we're headed in that same direction.

 

[dreads]

Yes, the taxes are definitely higher in Canada but those New Holland prices I originally quoted were before taxes. The total cost difference would have been even worse.

I'm originally from Australia and find many more 'made in Canada' or 'made in the USA' products here than I used to find 'made in Australia' back home. In Australia all the raw materials are shipped to asia to be shipped back as cars, electronics, etc.

 

[flyingcow]

i think you'll find they've already got the price increase due to taxes/import fees/etc that you don't see listed as sales tax. Tax before the sales tax. If that makes sense:confused2: It's a very regulated country.

 

[mjncad]

NAFTA has done a great job to create a free flow of goods across the US / Canada / Mexico border at the wholesale or manufacturer level. It's highly debatable whether significant benefits have been created at the consumer level. At one point, I had written to General Motors complaining about and asking for an explanation of the CDN / US price differential. The reply I got after decoding for the spin doctoring and BS was they charge more in Canada because they can.

Case in point, Silverado trucks made in Oshawa Ontario and then shipped to US market were model for model $6K - $10K more in Canada after adjustment for exchange rates.

Based on what you and other Canadians are telling the forum, and my conversations with Canadians via email, NAFTA hasn't done squat for the individual or small business.

As for NAFTA and Mexico...I better not get started, or this thread will get locked.

 

[dreads]

Good news, I went to a couple of dealers today and found out that if the tractor is over 60hp at the PTO then it is GST & PST (sales tax) exempt in Canada.

I was looking at a Kubota MX5100 but now have a reason/excuse to go for the M7040. My wife liked it too, especially the Hydralic Shuttle.

 

[ctlguy]

Good choice to purchase new in Canada if that is where you reside. Can't say for the other mfg but John Deere has barred US dealers from selling new equipment into Canada for the time being, not saying one will not, but at settlement time they will probably get caught and the potential headache after the fact could be substantial. I believe that if the $ accros the borders gets closer to each other they would then allow dealers to sell into Canada. But then again that may not have anything to do with why they are not to do that for now. Of course anybody can sell used equipment wherever they darn well please. Good Luck