Hi,
Are there any Canadians considering a trip to the US to buy a bike now that the Canadian dollar has been trading at or above par? My LBS is selling many of their tri bikes well above US prices, even Cervelos which I consider to be a Canadian bike. Any thoughts on this?
i know one girl who has either gone, or will be going down to buy a bike.
I am considering getting one for the gf.
How much duty did she have to pay?
Even without the dollar being so strong, bikes are always cheaper in the US to begin with. I had a friend who got quoted for a Guru in Lake Placid, We live in Montreal where Guru’s a MADE, and the bike was almost $800 cheaper.
As for Duties, most people just drive in with one bike on the roof, and drive out with two…
Probably none if done correctly.
I bought a bike off ebay in California and picked it up when I was on vacation, I traveled by camper with no other bike so it worked out perfect, I saved about 40% off Cdn prices, no duties. I plan on doing it again, I buy most of my stuff off ebay and also have access to a p.o. box in the US, usually save about 50% off cdn prices
like mtlrunner says, even before the strong dollar a lot of people bought stuff below the border. With almost 10x the population, there’s a MUCH larger market for goods (as well as competition) so stuff is cheaper down there. If anything, the dollar gives me incentive to pay the damn duties and crazy shipping fees some of the american on-line retailers demand because I still come out saving lots of bucks.
I also bought a new car in US this year and saved 13K on a 33K car.
With the CDN dollar going up to par with the USA it’s a bit of a scam that the prices of many things are still comparatively higher in Canada. Then throw on the GST/PST purchase taxes and there is reason for Canuks to be annoyed. I can understand that the USA is a much larger market and therefore some things can be sold cheaper due to volume, but I certainly don’t understand why CDN made bicycles would be cheaper in the USA.
But then I’m just ranting since I buy almost all my bike stuff on ebay from US sources any ways.
I can’t peak for other brands, but Blue Competition bikes are on par with the US.
Cheers,
Paul
www.rideblue.com
I was buying bikes and tri stuff in the US even when the Canadian dollar was at it lower (lowest?) points a few years ago, and still coming out ahead!!! so, with the current rates, the value is overwhelming, and yes, we’re (I’m) acting with our (my) wallet(s).
Sure, I should feel bad about not buying Canadian, or not buying from Canadian dealers, but in my illogical world, i justify my actions with the rationale that despite Cervelo HQ being a km or two from where I am here here in Toronto, it is cheaper to buy one in from the states, pay duties and taxes and have it shipped here instead of buying in a Canadaian lbs. (at least it was when i crunched numbers a few months ago.)
Why it is ok for a US company to sell cheaper bikes in the US and not for a CDN company?
Fred.
I’m sure a lot of things are on par but you have to pick and chose since it’s not uniform across the board.
Anybody who went to the Toronto Bike Show clearance sale last weekend probably could have got a better deal on on a 2007 bike than most anywhere else.
When I was in Lake Placid in early June one of the LBS quoted me $3K for a P2C. I’m inclined to wait for the 2008 Cervelo P2C then travel down to LP. The service there was excellent which makes it an even better idea.
I went and was quoted $3200 for a Cervelo P2C 2007
.
I was talking with a buddy of mine who happens to own a bike shop the other day, and this is an ugly position for any retailer. They don’t really benefit from the stronger dollar - it’s the wholesalers who are able to take advantage of this strength. But instead of passing even some of that along to the retailers (and hopefully the customers), they keep the wholesale price jacked up and the retailers have no choice but to purchase their goods at artificially inflated prices. Because of “grey market” and various other import regulations, Canadian dealers cannot for the most part just buy their stuff from whoever has the best pricing (or availability) - they go through their local reps and distributors. They are then forced to sell the goods at significantly higher prices than they know the stuff is selling for South of the border in order not to lose money.
“I don’t even want to go into 2008” was the memorable quote from that conversation…
I’m not saying that everyone should shop locally and pay more, I’m just trying to shed a little light on why the prices are what they are, and hopefully reduce the resentment that some people feel when they see item x at 20-50% more than they can find it in the US.
I think you’ll see increasing numbers of people doing that. Either that, or retailers close to the border (or those recognizing that they are going to lose at least a few sales in the season(s) ahead) will try to pressure manufacturers to lower prices to remain competitive with US mail-order and cross-border stores.
From my very superficial scan of headlines, it looks like such pressures are already being exerted by large Canadian retailers - I think a paper was reporting on Zellers yesterday. but I can’t think of any real ‘large’ bike retailers in Canada that would be able to sway manufacturers’ pricing to the extent that, say, a country-wide, big box chain could.
In any event, probably will be advantageous to get the CerveloGuru in LP. And you might want to pick up a plasma and laptop at a stateside Best Buy while you’re at it.
Dave
So, how do you do it correctly? I understand that duty does not apply to products made in countries which Canada has a free trade agreement with (like the US) but I assume most bikes are made in countries where no such agreement exists.
Scott
The items upon which actual duties apply aren’t that many these days, but you’ll still be paying GST and PST.
Things that are manufactured in the USA are almost always exempt. Things manufactured overseas and then imported may face duties - you’d need to look up the act or phone Canada Customs (they have a massive book) to know for sure. When I was paying tax for a kayak I bought, there was a guy ranting away that he wasn’t going to pay duties on some shoes and clothing that he was bringing back. The agent very calmly explained that his options were to:
- pay the duty
- abandon the goods
- turn around and head back to the US
This dude kicked up a huge stink (with his wife and kids standing there pleading with him to just pay it) and when he finally asked what the cost would be, he was looking at $50 all in. My guess is that for the privilege of that tirade, he’s never crossing the border hassle-free again.
Looks like the 2008 P2C and P2SL spec’d with Ultegra will be at a price that is tough to beat. Here is a quote from the Cervelo forums by Gerrard:
“So now the P2SL at the old price of the Dual is an even better bang for the buck. The P2SL Ultegra is USD 1650, the P2C Ultegra is USD 2500. Plus sales tax of course.”