Dollar Exchange Rate

[Niehart]

I know that my old shop in Montana is selling lots cycles to Canada, Wings mostly.

 

[bramfrank]

For some reason the US seems to have been somewhat immune to the effects of the devaluation of the US currency, at least as far as the pricing of vehicles from Japan. It appeared that we were a big enough market that the Japanese did not want to lose market share and were willing to reduce profits or pass costs to other markets. Whatever the reason, motorcycles are a bargain in the US compared to just about everywhere else in the world.

1. There are a couple of factors - but the reality is simply that the US Dollar and the Japanese Yen really haven't moved much relative to each other. However the dollar has sunk relative to the Euro and it's basket of currencies - this puts a LOT of pressure on the likes of BMW and it's continental cousins.

2. Duties? what duties? There are no duties on manufacturer or dealer imported motorcycles into Canada.

3. Dealer wholesale costs for their machines ARE that much higher.

4. Bikes in Europe are expensive, partly because there ARE import tarrifs into the E-U and BMW & Triumph & the rest take advantage of the protectionism to some degree. But there are also a lot of use taxes over there are well. Life is very expensive in Europe. But many get lots of annual vacation to compensate for it.

5. Bikes in India, Korea, Taiwan, China, most of Africa and so on are actually quite reasonable - but that's for basic transportation. Since relatively few luxury bikes such as the FJR are sold there, they tend to be a lot more expensive.

6. There's a lot more. But again; If you're a Canadian and if you're willing to take the warranty risk (and tolerate the slight differences between the country models) it is quite a bit cheaper to pay $12K to a discount US dealer plus 6.5% duty (because the bike wasn't manufactured in the US. ST1300 and Wing buyers don't pay that duty importing their Hondas) plus the regular GST and provincial taxes one would normally pay to bring up a bike than it is to pay $16.5K or more plus taxes up here for essentially the same machine.

The only cost to import is a $175 (or thereabout) fee to the RIV plus the cost of an inspection (less than $50).

 

[Dwavey]

It's always interesting that we Canadians will try so hard to be, and be seen as, different from Americans when it suits us, yet get our noses out of joint when things actually are different and it doesn't suit us. As other posters have noted, the fact is that Canada is a different country with different infrastructure, political, social and other costs than the US. If a Canadian thinks things are better in the US then they can take up US residence. Many Canadians do exactly that, either under NAFTA or another work visa, via applying for a green card (US immigration rules are rather liberal for Canadians relative to other nationalities) and many more simply spend half the year in the US and half in Canada, which allows them to enjoy both the social and medical benefits of being a Canadian and the market and other benefits that a non-resident living in the US are afforded.

Why is it that we're not hearing any complaints about the stuff we import that is now less expensive because of the exchange rate? Do you think there will be any media reports this winter about how Florida oranges or California lettuce is cheaper this year? I am old enough (barely, mind you) to remember when the Canadian dollar was worth more than the US dollar and things were pretty much the same then as they are now - some things were more expensive north of the 49th while some things were more expensive south of it, and people bitching about why the more expensive things here weren't cheaper.

Fact of the matter is, if you ask, many Canadian merchants will give you a better price which, when the cost of travelling south, warranty concerns, border wait times, etc, are considered, will make the two prices competitive. If they won't, shop elsewhere - I doubt that there will ever be enough cross-border shoppers to threaten Canada's social programmes, so shop where you think you need to and have fun doing it! But be careful, Canadian FJRs go faster and run better than US FJRs so if you import one be prepared to be passed :lol:

 

[Ignacio]

Sorry, but it seems people can't discuss this thread without turning political. It wasn't the author...they tried to keep it there, but I doubt this is a subject onion we can peel without hitting the third rail of politics. Thread closed.