JAMII

As a Canadian, I'm tired of being taken advantage of by Canadian dealerships. Last year I purchased a brand new 2007 Honda S2000 from the US and saved approximately $12,000.00. This year my wife decided she wants a RX350 AWD w/ Nav. The price in Canada is nearly $58,000.00. I know there is a deal to be made in the US but Lexus dealerships refuse to sell brand new vehicles to Canadians!! Why?

RXSF

im pretty sure its illegal for US dealers to sell a canadian a car...

CK6Speed

iTrader: (1)

See if you can buy one from Hawaii then ship it to Canada. Seriously. Hawaii Toyota and Lexus don't comply with the US Lexus rules. We get out cars directly from Lexus in Japan through the importer Servco. That is why we have our own MSRP and option packages that may or may not be the same as those in the mainland. Not saying they would actually sell a car to you either, but it might be worth a phone call. Shipping to Canada would probably be under $2000.

catdaddylo

Maybe you could find a buyer's service that could save you some money.

Sugar3d

No it is not illegal. It is just very hard. Toyota Canada does not want Canadians buying from the US. So the put presure on all the dealerships in the north to not sell to Canadians.

Two things that might help.

1. www.fleetrates.com
I was going to buy my RX from these guys, but then I found a fabulous lease take over deal in Toronto. I found them to be good, BUT you should do your own research into them.


2. http://www.redflagdeals.com/forums/s...d.php?t=307601
By far the single best source of information for Canadians who want to save money by buying a vehicle from the US. Lists registration and import rules etc etc. Lots of info though so be warned.

Grumpa72

I have read that certain manufacturers prevent US dealers from selling to folks north of the border. This is an arbitrary decision based on economics and not law, as I under stand it. The whole reason, as I have read, is to protect the Canadian dealers.

JAMII

Canadian dealers have been gouging us for too long! How can Lexus create "laws" that supersede NAFTA? I had a pretty long chat chat w/ Lexus USA today and stated that Toyota/Lexus Canada and RIV have no issues in importing a RX350. Upon speaking to certain dealers they are "afraid" to deal w/ a Canadian since they will be fined in excess of $10,000.00 by Lexus USA!

Grumpa72

How about having a "ghost" purchase it for you? Someone you know in the states buys the car, drives it for a couple of days and then sells it to you as a used vehicle?

salimshah

Manufacturer can establish set of rules with its dealers ... code of conduct..., which can include penalties and even revocation of dealership rights. The key is that these rules can not be illegal (against rules and laws of the land). There is a margin between "what is legal" and "what is illegal" ... as long as the law does not exist it is not "illegal".

There are times when all this favors the customers and then there are times when it is disadvantageous. ... Lexus Dealers can not sell over msrp.

Salim

bob2200

Maybe a "ghost" in a no-sales-tax state like Delaware?

ZIN

I never saw said "pressure" stop any business from making money. There has to be legal issues or conduct issues because if there is a $ to be made they would sell you a car.

Bowlth

Being from Canada as well, I purchased my 2008 RX 350 from a broker, as I encountered the same issue of not being able to purchase a new vehicle directly from a US Lexus dealership. At the time, my purchase in the US saved me $16,000 over buying in Canada. However, since then, Lexus Canada has dropped the price about $10,000 with incentives and option changes. There is still about a $6,000 difference. There are a couple of ways to get around the rule that Lexus USA has imposed on its dealer network with risk of losing their franchise if they sell to Canadians (there is currently a class-action lawsuit dealing with this unfair practice of price manipulation):
1. Have a friend/relative who lives in the US buy the car for you and then you purchase the car from them and take it over the border. The US dealers will be happy to help you with this, as all they need for internal audit purposes is a copy of the purchaser's US driver's license

2. Use a broker as I did. While this is a good way to get a new car (a broker typically deals with a leasing company in the US who purchases the car and then sells it to the broker, who in turn sells it to you), as you can see by the chain of events, each touch point wants to take a big profit (usually about $1,000 each). So the dealer will take about $1,000, leasing company about $1,000 and the broker the same, so you are paying min $3,000 more than if you could walk into the Lexus dealership and negotiate your own deal.

I think the best answer is to try and negotiate with the Canadian Lexus dealership. While you will not get the same deal as you could in the US, there are advantages to paying for a Canadian car. You will not get a loaner car in Canada when you bring in your Lexus to be serviced. In addition, the dominant speed will obviously be miles over kilometres. Finally, dealer attitudes are more positive to cars bought in Canada. I've had to go to a few different dealers because of the poor attitude towards my US bought car (despite the fact that we all know dealerships make more on servicing than on new/used car sales).

Finally, be careful. I know continental US Lexus warranties are honoured in Canada (roadside service is not). However, if you buy in Hawaii, your warranty may not be valid in Canada. You should check before making your purchase.

Hope this is helpful!

Who_Me

Dealers have always been able to sell over the MSRP for hot selling models. Toyota has been doing it for years, with a little addition to the sticker that says, "Added Dealer Profit." I haven't checked lately but my guess is that everyone that sells a Hybrid has the "Added Dealer Profit" on their stickers already.

Bowlth

Remember, MSRP means Manufacturers SUGGESTED Retail Price. Nothing limits dealers from selling beyond MSRP as demand warrants.

salimshah

My view is based on my personal purchase experience (times two), where I bought two Lexus (hight demand and in short supply). In both cases, Lexus dealership did not add a cent but at the same time did not drop a cent.

Contrast that with VW new beetle and corvettes, nissan's GTR and there are rumors about above MSRP for BMW's new suv.

Salim