The Dreaded Exchange Rate (CAD/USD)

[dchuck]

Hi Pieter, Your missing the most obvious advantage you have. As a resident of Ontario you already get an 13k rebate. Your car is dirt cheap in comparison to us poor saps out west. see

for a nice concise list of the rebates in Canada.

Even using your worst case scenario your already back to the US price: $49k - $13k = $36k

As a hedge I purchased Tesla stock in my Online trading account. That way when i sell in US dollars the conversion doesn't hurt me as much. Plus if Tesla is successful and it goes up to $500 a share (good luck) i may even be able to afford a couple of options on the car instead of a base model.

I plan to spend no more than $50k on the Model 3. If i have to I will subtract options to make it fit that number. If i cannot get to that number at the base price i will simply move on to some other vehicle.

The car itself might get cheaper. Right now all the batteries used by Tesla come from Japan so Canada adds a 6.1% duty on each car because less than 55% is made in Canada/US/Mexico. With the Gigafactory now producing batteries Tesla should be able to apply to have that duty waived. Part of the $20k difference in the cost of the Model S/X in Canada vs the US is that duty.

The bad news is the import duty may not be lifted before your Model 3 becomes available, that or Mr Trump with his stance on NAFTA may put a monkey wrench in the works.

As others have said we may be waiting until Q1 2018 to get our Model 3's by then who knows what the exchange rate will be. You could pay as little as $22 for your Model 3 (exchange at par with the 13k rebate)

 

[dchuck]

sorry about the way the video posted folks i meant for the link and not the preview to be shown.

 

[sitter_k]

Sorry, I don't get your question.

As long as the Liberals win the 2018 Ontario elections, I suppose the EV incentive will remain in place. The party made it up. If they lose, then the Conservatives make them that away.

I don't know if I want the Liberals to be reelected just to be assured of the rebate.

 

[internalaudit]

I don't know if I want the Liberals to be reelected just to be assured of the rebate.

Me too but we have to find out what the different parties' platforms are before we can make an informed decision especially with Trump as the new president elect. Could mean lots of changes affecting Canada.

 

[Scifi_tv_fan]

I don't know if I want the Liberals to be reelected just to be assured of the rebate.

I'd love to see the other parties offer similar incentives as well, that way we don't lose the incentives no matter which party wins election!

 

[sitter_k]

Me too but we have to find out what the different parties' platforms are before we can make an informed decision especially with Trump as the new president elect. Could mean lots of changes affecting Canada.

I'm not too sure what could possibly be in the Ontario Liberal platform.

I might be happy to pay full price... But either way I think everyone receiving their car in 2018 will have the rebate.

 

[Pieter Knispel]

Hi Pieter, Your missing the most obvious advantage you have. As a resident of Ontario you already get an 13k rebate. Your car is dirt cheap in comparison to us poor saps out west. see

for a nice concise list of the rebates in Canada.

Even using your worst case scenario your already back to the US price: $49k - $13k = $36k

As a hedge I purchased Tesla stock in my Online trading account. That way when i sell in US dollars the conversion doesn't hurt me as much. Plus if Tesla is successful and it goes up to $500 a share (good luck) i may even be able to afford a couple of options on the car instead of a base model.

I plan to spend no more than $50k on the Model 3. If i have to I will subtract options to make it fit that number. If i cannot get to that number at the base price i will simply move on to some other vehicle.

The car itself might get cheaper. Right now all the batteries used by Tesla come from Japan so Canada adds a 6.1% duty on each car because less than 55% is made in Canada/US/Mexico. With the Gigafactory now producing batteries Tesla should be able to apply to have that duty waived. Part of the $20k difference in the cost of the Model S/X in Canada vs the US is that duty.

The bad news is the import duty may not be lifted before your Model 3 becomes available, that or Mr Trump with his stance on NAFTA may put a monkey wrench in the works.

As others have said we may be waiting until Q1 2018 to get our Model 3's by then who knows what the exchange rate will be. You could pay as little as $22 for your Model 3 (exchange at par with the 13k rebate)

Hey dchuck, no for sure, I am aware and thankful for the 14k rebate (and there is talk of the HST being waived as of 2018), and while I will be happy *settling* for a base Model 3, I really wanted to add some options, the bigger battery and dual motor to help hedge against range loss in our Canadian winters, and then some 'frill' options like premium seats, sound system, and glass roof. When I add that all up and account for the exchange rate, even with the rebate, its really going to be a borderline call for me... this, especially when I think back a couple years back when our dollars were at par, and I would have been able to afford those things without question!

Very good to know about the import duties though, as I was totally ignorant to that element... hoping somehow the situation improves and that a couple smart investments further help me fund the Model 3 of my dreams!

 

[Pieter Knispel]

Me too but we have to find out what the different parties' platforms are before we can make an informed decision especially with Trump as the new president elect. Could mean lots of changes affecting Canada.

As long as we take delivery in the first 3 quarters of 2018, we should be save. Given that the election occurs in October 2018, I would maybe even expect that we will likely have until early 2019, before any incoming party removes the rebates... given that there are probably a few other legislative things they would prioritize to introduce/resolve first...

 

[River]

7-year/160k km extended warranty

7 years extended warranty on a Toyota? Personal opinion, well... You just lost money. But, its your choice, not judging you. But I will definitely take the extended warranty on the Model ≡.

 

[internalaudit]

7 years extended warranty on a Toyota? Personal opinion, well... You just lost money. But, its your choice, not judging you. But I will definitely take the extended warranty on the Model ≡.

That is quite possible but it is still cheaper than leasing every three years. We tend to keep our cars until they are too costly to maintain and that hasn't happened yet but we've had to use the extended warranty on our Honda's. Problem with car issues is many don't come out until after the original factory warranty expires and I'm sure these things manifest themselves exponentially over time. That's why I take the longest period but not necessarily the highest kilometers.

 

[stephenstohn]

Just ordered a 100D... the additional $ to upgrade from 90D to 100D (which I did) was Cdn$7,200 which is roughly US$5,500 -- far more than the US$3,000 that it appears is the additional price in the U.S. Since the exchange rate has been about the same for the past six months or so, not sure why the difference... I'm not complaining, just observing, I can't wait for the delivery!.

 

[S'toon]

Just ordered a 100D... the additional $ to upgrade from 90D to 100D (which I did) was Cdn$7,200 which is roughly US$5,500 -- far more than the US$3,000 that it appears is the additional price in the U.S. Since the exchange rate has been about the same for the past six months or so, not sure why the difference... I'm not complaining, just observing, I can't wait for the delivery!.

There's an additional duty since the S doesn't have the necessary requirements of North American parts, namely the batteries. When the Gigafactory comes online that'll solve that problem.

 

[JeffK]

Since the exchange rate has been about the same for the past six months or so, not sure why the difference... I'm not complaining, just observing, I can't wait for the delivery!.

The 100D was the first model to reflect the current currency differences. The other models will likely follow suit soon.
Elon Musk on Twitter

 

[ex-bimmer]

Ontario restored the $14k incentive on BEV's up to $150k ($CDN) by removing the $3k cap.
Main beneficiary appears to be Tesla buyers

Ontario Making Electric Vehicles More Affordable

Of note: they will re-examine the incentive yearly, next review is Fall 2017.

 

[sitter_k]

Ontario restored the $14k incentive on BEV's up to $150k ($CDN) by removing the $3k cap.
Main beneficiary appears to be Tesla buyers

Ontario Making Electric Vehicles More Affordable

Of note: they will re-examine the incentive yearly, next review is Fall 2017.

Wait a min Fall of 2017 is....

 

[Ski Krazy]

So the loonie has been going up fast since the Bank of Canada has increased its rate. I know this thread is under the Model 3 sub-accounts but this makes me wonder how long does it take for Tesla to update its prices based on the exchange rate (in reference to it's Model S/X prices)?

Currently, playing with their configurator, I get a price increase of roughly 37% when comparing the Canadian site to the US one. If the loonie can hit $0.80 US, that should drop it closer to 25% (crazy math, right?). I'm sure they wouldn't drop the price that far, but any idea as to when they could drop their prices if the loonie holds strong?

 

[sitter_k]

Model 3 should also qualify not to have the 6% import tax as well. It was my understanding the model s had the 6% tax because the battery components were from overseas.

 

[03DSG]

Model 3 should also qualify not to have the 6% import tax as well. It was my understanding the model s had the 6% tax because the battery components were from overseas.

I agree. Today the exchange rate is 1.00 usd = 1.27 cdn. Looking much better than earlier this year. With the batteries produced at the Gigafactory for the 3 we should also save the 6.1% Nafta import tax. I'm budgeting based on the exchange rate alone without the 6.1%.

 

[03DSG]

So the loonie has been going up fast since the Bank of Canada has increased its rate. I know this thread is under the Model 3 sub-accounts but this makes me wonder how long does it take for Tesla to update its prices based on the exchange rate (in reference to it's Model S/X prices)?

Currently, playing with their configurator, I get a price increase of roughly 37% when comparing the Canadian site to the US one. If the loonie can hit $0.80 US, that should drop it closer to 25% (crazy math, right?). I'm sure they wouldn't drop the price that far, but any idea as to when they could drop their prices if the loonie holds strong?

Tesla does quarterly adjustments based on exchange rates. Your 37% would be 31% without the 6.1% duty.

 

[Ski Krazy]

Tesla does quarterly adjustments based on exchange rates. Your 37% would be 31% without the 6.1% duty.

Thanks! Ah, I didn't know about the duty due to the overseas battery mentioned above. Aren't all of their batteries being made at the Gigafactory now, in which case shouldn't all of their cars save on the import tax? Something else to be updated perhaps...