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Ford of Canada Offers Discounts

Last week, it was reported that Ford will be offering discounts for their light trucks as the Fourth of July holiday approaches. And recently it was announced that it is the Ford of Canada who is offering discounts on almost all of the vehicles in its lineup including the Ford F-Series - the best selling model for Ford in Canada and in the United States.

According to reports, Ford of Canada offers discounts from $953 to $6,375. After the announcement of the discount, it is expected that Chrysler Canada will follow such a step taken by Ford. According to sources, Chrysler will be giving their consumers gasoline discount cards as part of their incentive scheme.

Analysts agree that it is typical for auto manufacturers to sell discounted vehicles during the summer season. This is due to the fact that they are making room for the introduction of new model of vehicles. And since auto buyers are turning away from large vehicles, the summer season is a perfect chance for car manufacturers to sell slow selling models.

Ford and Chrysler are known for their lineup dominated by large vehicles. With the price of gasoline increasing, they are forced to sell these large vehicles at discounted price to get them out of their hands. The two Michigan-based car manufacturer's lineup of light trucks is also ageing and their competitors, General Motors and Toyota are introducing redesigned light trucks. This would further turn customers away from Ford and Chrysler if not for the discounted prices.

But the discount offer is not only aimed at getting rid of the ageing light trucks in their lineup. Ford and Chrysler are trying to attract the attention of Canadian auto buyers who are thinking of buying cars across the border in the United States than buying in Canada. According to figures, a typical automobile sold in the United States costs about $5,842 less than when it is sold in Canada. That is equivalent to about 17 percent in price disparity. The Ford Escape Limited in fact costs 21 percent more when sold in Canada compared when marketed in the United States.

"It's much cheaper to buy vehicles in the States than it is in Canada," said Alex Rosten, an analyst for Edmunds. "(Automakers) are probably offering more to get people to buy the cars in Canada. A friend of mine bought a Porsche Cayenne in Seattle for about US$20,000 less than what it would have cost him in Vancouver," he added.

David Nay, a dealer principal at CSL Ford in Cardston, Alberta, has this to say about the trend in pricing in the United States and in Canada for not only Ford rim-equipped Ford vehicles but also for other models from other carmakers: "I cross the border quite regularly and I've imported used vehicles in. And the comments that I get at the border are that there are hundreds of vehicles crossing into Canada. It concerns me. Prices need to be adjusted to take care of that."

According to Mr. Nay the process of buying a vehicle in the United States and taking it into Canada is easily done. This is why many Canadians are buying their vehicles in the United States which of course hurts the Canadian auto industry. Even if a Canadian buys a car in the United States and is dictated by law to pay taxes for the imported car, the cost is still less than what one can save by buying in the United States.

About The Author Anthony Fontanelle is a 35-year-old automotive buff who grew up in the Windy City. He does freelance work for an automotive magazine when he is not busy customizing cars in his shop.
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