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Robert Dexter, a spokesperson for BMW Canada, was more forthcoming with some answers as to why Canadians are paying more.
He says adjusting prices to reflect currency fluctuations can introduce “instability” in the marketplace, impacting the residual values of leased vehicles and ticking off owners who purchased earlier at higher prices.
Then there’s the negative perception of falling prices, Dexter says, which can hurt an upscale image.
“There’s a reluctance to discount, which can affect the `premium’ brand,” he says.
Rather than tinker with sticker prices, BMW and other manufacturers prefer to give Canadians more product features for the same price.
“We’ve made efforts to address the currency (valuation) by adding content to our products,” Dexter says. “Base models are better equipped in Canada than in the U.S.”
He explains the reason Canadians will never see identical prices on both sides of the border is because the cost of doing business in the Great White North is higher.
“The U.S. has economies of scale with 10 times the population. Marketing costs are higher here by doing everything in two languages. There is only one port of entry in Canada (for BMW), while there are three or four in the U.S. Taxes are higher here.”