How come the Mustang is cheaper in Canada?

[S650 GT]

Is the Mustang before tax really cheaper in Canada or am I missing something?

The Mustang GT Premium starts from 47.000 US Dollars in the USA

The Mustang GT Premium starts from 56.000 Canadian Dollars which is equivalent to 42.000 US Dollars.

That's a difference of 5000 US Dollars!

I know that the taxes in Canada are higher than in the US (In General), they have a 5% goods and sales tax (GST) and a Provincial tax which depend on the State you live, but most of them are around 10% and only Alberta has 0%. The total amount of tax on a car in Canada is around 12-15%

The national average of tax on a car in the USA is 5% (depending on the state you live in), where also a few states have 0% sales tax.

Is the Mustang GT Premium really 5000 US Dollars cheaper in Canada or is there something that I don't know about?

Sponsored

 

[Devon]

I haven't looked into it for the Mustang but the spec'ed features for cars are often different up here, with the Canadian version of a given trim being less generously equipped, accounting for some of that price difference. For example a car might come standard with a sunroof in the US whereas that would be an optional extra in Canada (or might not even be available).

 

[S650 GT]

I haven't looked into it for the Mustang but the spec'ed features for cars are often different up here, with the Canadian version of a given trim being less generously equipped, accounting for some of that price difference. For example a car might come standard with a sunroof in the US whereas that would be an optional extra in Canada (or might not even be available).

Okay, so let's take the base Mustang then.

Canada price: 49.000 Canadian Dollars is equivalent to 37.000 Amercan Dollars.

USA price: 42.000 Amerikan Dollars

Still 5000 US Dollars in difference, even on the base model.

 

[pozi240]

GST is 7% across Canada, and HST in Ontario for example is 13%, so, taxes add up fast. The cars are not "lessor" equipped as you suggest, but, the option packages are more expensive as well. But, yes, even with the higher taxes, higher option costs and even higher Freight and Transportation costs ($2300), when converted over to the USD, it will often still be "cheaper". (Not for much longer when remaining G20 countries no longer use the USD for hard currency trading and switch to BRICS officially).
Anyway, its always been that way, and not just with Ford. When we ordered our C8 Corvette years ago, the exchange rate made buying a new C8 MUCH cheaper up here than in the USA, so much so, flippers up here were selling for huge profits to US buyers. That is why many flippers up here now get "blacklisted" if they sell their brand new GM product within the first year of purchase and Ford is considering the same on certain models.
The reasoning for the lower price points (relatively speaking) on CDN models is due to the much smaller market and much lower demand. (I'm over simplifying, but, it is simple macro economics in a nutshell).

 

[Spectre]

The reason for the lower price is free trade. What used to be only for businesses was properly expanded to include individual customers who filed a class action up here against most automakers for artificially jacking UP the prices in Canada vs the US, and voiding warranties if we bought in the US.

Since the class action, the price drop is to ensure there aren’t more Canadians who buy their new vehicles in the US.

 

[S650 GT]

The reason for the lower price is free trade. What used to be only for businesses was properly expanded to include individual customers who filed a class action up here against most automakers for artificially jacking UP the prices in Canada vs the US, and voiding warranties if we bought in the US.

Since the class action, the price drop is to ensure there aren’t more Canadians who buy their new vehicles in the US.

I can understand the price drop so that Canadians would not buy it in the US. But then you can just make them the same price right?

Here you can see it's 5USD difference between the same car.

 

[Spectre]

I can understand the price drop so that Canadians would not buy it in the US. But then you can just make them the same price right?

Here you can see it's 5USD difference between the same car.

They probably set the currency exchange some time ago. They're not going to adjust it with every fluctuation.

And taxes. We get killed in taxes.

Let us have our victories where we can take them.

 

[S650 GT]

They probably set the currency exchange some time ago. They're not going to adjust it with every fluctuation.

And taxes. We get killed in taxes.

Let us have our victories where we can take them.

Oh sure. I even hope Canada will be even more cheaper compared to the US, cause once I saved my money, I'm going to buy a S650 in Canada

 

[dollybud]

I haven't looked into it for the Mustang but the spec'ed features for cars are often different up here, with the Canadian version of a given trim being less generously equipped, accounting for some of that price difference. For example a car might come standard with a sunroof in the US whereas that would be an optional extra in Canada (or might not even be available).

Sales tax in Ontario is 13%. I was hoping mine would come without the metric system. Should have thought of that before ordering it. Don’t know if you could buy US version in Canada from Canadian dealer.

 

[Mrswear2god]

Oh sure. I even hope Canada will be even more cheaper compared to the US, cause once I saved my money, I'm going to buy a S650 in Canada

Sorry to burst your bubble I'm from Canada and a dealer legally can't sell to anyone from the usa right on any window sticker it says "this veh not intended for sale or registration in the us" and when a dealer becomes a ford dealer they sign a contract saying they wont sell to the us or they will no longer be with ford.

 

[dollybud]

Sorry to burst your bubble I'm from Canada and a dealer legally can't sell to anyone from the usa right on any window sticker it says "this veh not intended for sale or registration in the us" and when a dealer becomes a ford dealer they sign a contract saying they wont sell to the us or they will no longer be with ford.

Thanks for answering. I’m happy with my Canadian version. At 75 I never liked the metric system for all these years.

 

[Mrswear2god]

Thanks for answering. I’m happy with my Canadian version. At 75 I never liked the metric system for all these years.

you can change it to imperial in the settings

 

[S650 GT]

Sorry to burst your bubble I'm from Canada and a dealer legally can't sell to anyone from the usa right on any window sticker it says "this veh not intended for sale or registration in the us" and when a dealer becomes a ford dealer they sign a contract saying they wont sell to the us or they will no longer be with ford.

I'm not from the US and there are coming tons of new vehicles from Canada to our country through another company.

 

[sjerven]

Yes, the new mustang is cheaper in Canada, at least before taxes. I love my Dark Horse!

It really comes down to economics, and there is way less demand for American sports cars up here. We don’t have the freeways, population etc and it’s market based pricing. Prices of goods in most countries aren’t usually based on currency conversion; they are what the market dictates with supply/demand.

So many people here want to drive Tesla’s and imports over muscle cars. They must be nuts. Lol, but Gas is more expensive in Canada, at least where I live.

 

[dollybud]

you can change it to imperial in the settings

Thanks. I get a lot of questions answered on this forum. Bring a US back to Canada. Pay in higher US dollar, have to be in US 3 days, and a travel permit for car.Canadian border prove u were there 3 day, pay Canada taxes 10-15% depending on Province, and 30 days for Canada safety at Canadian Tire. Expenses for 3 days. Not really worth it unless you are on a holiday.

Sponsored