The Redeye Complex
Wednesday, November 28, 2007
High Canadian car prices explained?
The Truth About Cars has been watching the situation with automobile prices in Canada and reaction to the higher prices here than in the US.
And they may have found something.
auto makers are reluctant to cut MSRPs in Canada because a record 550k vehicles are coming to the end of their leases next year, up from last year's five-year low of 470k units. Cutting prices would reduce the vehicle's residual values leading to huge losses for the dealers and auto financing companies obliged to buy them back from the lessees.... repeated from a Globe and Mail/Scotiabank special article.
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