Cross Border Lexus Price Rx350

[solara]

I noted a subsciber from Montreal who was shopping for a new Lexus, as we are. I wish to share our experience in this venture. Our choices now span the BMW, Lexus and Lincoln SUV models. The Lexus RX 350 is built in Canada and when sold in the USA is priced at $37,100 (US$) while the same vehicle in Canada is sold at approx $52,500 in equilvalent currency. The Canadian Dollar trades at 5% less than the US$ and is predicted to be par this fall 2007. That price differential today is $15,000. The difference will be close to a 33% discount if one purchases in the USA. I spoke with Lexus locally and in Ontario Head Office where the vehicle is manfactured. Their reply to this disparity was the market differences between the USA and Canada, the need to keep pricing at a level expected by other Lexus owners who have already purchased, and competitive pushes such as incentives by BMW, Audi and other luxury manfacturers. I spoke with Lexus in Spokane and Salt Lake City who both advised their dealer agreement did not allow them to sell NEW to Canadian buyers. Lexus Canada was not aware of this exculsion however our local dealer suggested they knew this condition might exist. One representative suggested Lexus Canada may not honor a warranty for a US purchased Lexus. I think Lexus owners and potential owners should be aware of this pricing issue. Also I hope that Lexus HQ is aware that buyers are making decisions based on these policies and thay they will create the incentives we need.