5 Products Canadians Pay Way More For

AAA

With the Canadian dollar flirting with parity with the U.S. dollar yet again, Canadians can't help but consider shopping stateside to score some great discounts.

Keep in mind that there are limits you have to adhere to when crossing back over into Canada. Always declare what you've purchased, and the rule of thumb is: the longer you stay in the U.S., the more you are allowed to bring back without having any duties or taxes levied.

Finally, let's not forget to also factor those deep sales that happen, especially on Black Friday.

With the above in mind, there are certain categories of goods and services that are usually cheaper in the U.S. than in Canada, even without equal currency values, sales tax savings or major sales.

Books

The printed word tends to be cheaper in the U.S., partly because suggested retail prices are usually printed on the book itself, and retailers are not likely to want to reprice their books based on currency fluctuations. If Canadians don't want to head over to the States every time you want to buy a book, buying your books online will probably score you a better deal than going to your local bookstore.

Cigarettes

A vice to be sure, but many Canadians might find more of a financial incentive to quit or cut back on this habit than their American counterparts. Why? Because cigarettes are significantly more in Canada than in the States. A pack of Marlboro cigarettes costs around $10 in Canada, but cost only around $6 in the United States. To be fair, cigarettes are taxed heavily in Canada and this is one of the major reasons for the increased cost.

Tires

The duty to ship tires across the border is around 7%, but according to an article written by moneyville.ca, tires in Canada cost a minimum of 13 - 25% more than the price of their American counterparts and many tires even cost upwards of 50% more. What gives? Even tires made in Canada can be found for less in the U.S., even if you can see the factory right outside of your door. The solution? Buy your locally made tires online and have them shipped from the States right back across the border.

Food

There are rules and regulations of what you can and cannot bring over the border, and you will have to declare any foodstuff purchased in the U.S. With that in mind, even grocery shopping in the States can be cheaper than in Canadian supermarkets. Some examples listed on numbeo.com are: chicken breasts are roughly 40% less, 1 liter milk is around 50% less, rice runs about 38% less and loaf of white bread runs over 12% less in the U.S.

Gas

Unsurprisingly, gas is also cheaper in the United States by about 25%. Don't be fooled by that gallon-to-liter conversion, just multiply what Canadians pay per liter by 3.78, to get the American equivalent. So if gas is about $1.31 per liter in Canada, it should be $4.95 per gallon in the United States. But are Americans paying those prices? No.

Average gas prices hover around $3.74 per gallon range, which translates into roughly 99 cents per liter.

Conclusion

This is just a comparison between Canada and the United States. For many people visiting Canada, the prices in their home country tends to be a lot more expensive, and they consider Canada to be a haven of great deals. As a Canadian, you can save a lot by spending stateside, but don't forget to factor in the extra costs of lodging, travel, food and taxes/duties.
Related Articles
  1. Trading

    The Canadian Dollar: What Every Forex Trader Needs To Know

    Canada is becoming an increasingly viable alternative to the U.S. dollar, making it more important in the forex market.
  2. Markets

    3 Reasons Canada's Economy Matters in 2016

    Discover why Canada's 2015 recession matters and why the United States is particularly dependent on a healthy Canadian economy.
  3. Markets

    Is Now the Right Time to Buy Canadian Stocks?

    Learn about the Canadian stock market and why it has declined over the past five years. Understand if now is a good time to invest in Canadian stocks.
  4. Markets

    The Canadian Economy, At A Glance

    The 12 economic indicators described here together provide a comprehensive picture of the state of the Canadian economy.
  5. ETFs & Mutual Funds

    Canada's Commodity Currency: Oil And The Loonie

    When the price of oil goes up, don't worry about how much gas is going to cost - get even by making a play on the Canadian dollar.
  6. Markets

    Looking for Good Investments in Canada? Try These Stocks (BAM, CTC.A)

    Discover why investing in Canadian stocks makes sense and which Canadian companies to invest in even with oil prices at multi-year lows.
  7. Markets

    Canadian Dollar Continues To Drop, But Why?

    The Canadian dollar-US dollar exchange rate is positively related to oil prices partly due to crude oil's big share of Canada's total FX currency earnings.
  8. Insights

    Target Finally Escapes Failed Canadian Experiment

    After years of cash infusions into a failing Canadian operation, has Target financially recovered? What are the long-term effects of Target Canada?
  9. Markets

    How And Why Oil Impacts The Canadian Dollar

    The value of the Canadian dollar, or the loonie, has a strong correlation with oil prices.
  10. Personal Finance

    Canada: A New Frontier For Real Estate Investors

    This property market is easy to access and provides profitable opportunities.
Hot Definitions
  1. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  2. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  3. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  4. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  5. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  6. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
Trading Center