Items Cheaper In The US Than Canada
Posted on by Forest in Saving Money & Finances, Vacations
Items Cheaper In The US Than Canada
Items Cheaper In The US Than Canada
For as many years as people can remember Canadians have headed south, over the border, to USA to do certain types of shopping, especially around holiday and sale time. The Canadian dollar sat at somewhere between 50%-75% worth of the USA dollar and pricing in CA$ was adjusted for this but some items such as cars were still cheaper in USA. However for nearly 2 years now the Canadian dollar has been equal, just under or above the US$ and oddly enough many Canadian prices have not adjusted to accommodate for this. This leaves Canadians in many cases paying somewhere between 15%-30% more for almost all consumer goods. Retailers claim that the costs associated with bringing goods into Canada go somewhere to explaining this and some say the price will equalise but very slowly. Others say that the USA economy is more competitive means that it generally has lower prices.
Canadians obviously feel a little disillusioned by all this. It doesn’t make a whole lot of sense and everyone could do with a nice 20% price drop however it’s not likely to happen quite like that if retailers can help it! The situation does present shoppers a great opportunity though.
Items Cheaper In The US Than Canada
An average of around 20% saving on all your shopping, especially larger items, is nothing to be snuffed at and if you live along the parts of Canada where a drive south over the border is possible then a shopping expedition and short break may well be on the cards.
Standard items such as books, clothing, electronics and even vehicles will all be a lot cheaper in many cases. Whilst down there you will probably save on hotels and eating out is often a lot cheaper.
In my experience you will like save on every aspect of the trip, including fuel (roll over the border empty!) which is often around $0.20 per litre cheaper. However watch out for toll roads and tourist traps such as car parks in major shopping destinations.
Of course there are tax implications. A journey under 24 hours theoretically allows you $0 tax exemption and under 48 hours (more than 24) just $50 exemption. 48hrs to 7 days allows $400 and 7days+ gives you $750 exemption. Of course often border agents don’t bother collecting the tax but that can’t be relied upon! Better Dollar has an excellent article on the details.
So, are you going to head down over the border (or even across in some parts of Canada) for your holiday or big-ticket shopping? Where will you be heading and what are you hoping to save on?
I’d love to hear your thoughts and experiences with cross border shopping.
Related: Family Budget Tips
Thanks for reading - Items Cheaper In The US Than Canada
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12 Responses to “Items Cheaper In The US Than Canada”
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bab
09. Nov, 2011
Correction: after being away for 24 hours you can bring back worth $50.00 Cdn. After being away for 48 hours you can bring back worth $400.00 Cdn.
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Forest
10. Nov, 2011
Hey Bab, I think my wording was bad but I was giving the under 24 and under 48, I have cleaned it up in the article now.
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nick1946
09. Nov, 2011
The best times are when the seasonal sales are in full swing(remember they start their seasonal sales much earlier then we do in Canada. A great time for gifts and winter clothing is after the US thanksgiving( I do not go until after that weekend because the Thanksgiving crowds at the stores are unbelievable).
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Forest
10. Nov, 2011
Absolutely Nick, best time to enjoy a good USA festive feast too
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Lisa
13. Nov, 2011
Here is another thing to get if you live in ie sarnia , windsor, another bordertown. If you buy a cell phone for me it is boost mobile. 50.00. you can get unlimited talk,text, web and depends on phone two way calling. you can use your phone in canada only on the border. The cost???$50.00 us per month this is for calling anyone northamerica. CHEAP. Now if you give to friends or parents (who seem to like it in florida or arizona during the winter) tell them to take that phone and go on a monthly $50.00 plan if you have not already paid it. . now you can talk to them or they can call you free. Best way to keep track of them.and talk to your friends while they travel the usa.
Just one way I beat things
Happly truckin along.
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Forest
15. Nov, 2011
Wow Lisa, that is an awesome, awesome tip
. Thanks so much, will be sharing that.
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kent turner
09. Nov, 2011
under 24 hours CBSA allows you $50 per person
48 hours CBSA allows you $400 dollars per person
and in some cases, if you go for a couple of hours, and come back with up to $200 worth of groceries, CBSA will not charge you anything, unless one or two goods are over $50
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Forest
10. Nov, 2011
Thanks Kent.
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harold caudron
10. Nov, 2011
i do some shopping on line in the us and china at a great savings.and intend to continue.tired of being r***d in canada.h.c.
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Forest
10. Nov, 2011
As long as they don’t throttle you with postage it can be a great option
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Terry
13. Nov, 2011
Yes you might save a few bucks,but look at it this way,
U.S. stores dont pay taxes in Canada llike our stores do.
So the next time you need a hospital or uic welfare etc.
remember who helped pay for it.
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Forest
13. Nov, 2011
That’s an interesting point Terry, theoretically though you should pay most of that tax coming back over the border and often you still save money.
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