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Why do Canadians pay higher freight and delivery charges than Americans?

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Khatir Soltani
CAA-Quebec recently asked the question. After extensive research, they came to the conclusion that freight and delivery (F&D) charges are 31-61 percent higher in Canada than south of the border. In some cases, Canadian dealers are asking up to $1,000 more for the same exact vehicle than their American counterparts.

Not only do Canadians pay nearly twice as much as the Americans, but they often do so for domestically-built vehicles. For instance, the Ontario-manufactured Acura MDX carries F&D charges of $1,855 in Canada and only $715 in the United States. What's more, these charges increase every year; for 2008, the hike is close to 10 percent with some vehicles. Only Toyota reduced its F&D charges.

Now that the Canadian and U.S. dollars are almost equal, such disparity should no longer exist. According to CAA-Quebec, this situation is simply inexplicable.
photo:CAA
Khatir Soltani
Khatir Soltani
Automotive expert
  • Over 6 years experience as a car reviewer
  • Over 50 test drives in the last year
  • Involved in discussions with virtually every auto manufacturer in Canada