Canadian Pricing - Will it be adjusted?

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Pricing of Rivian in Canada was first released back in November and was based on an exchange rate of about 1.34.

Since then, the Canadian dollar has appreciated significantly. And currently there is a $6000 difference between buying a base model R1S in the US and applying the exchange, vs buying it in Canada. The delta gets wider on the R1T and if you add options.

This is already fairly significant, and based on the trend rate and expected market moves on the dollar, it is going to get even wider before launch.

Do you think Rivian will re-price Canadian vehicles? I hope so... otherwise it is not going to make sense to buy in Canada, it will be cheaper to buy in the US and import them even if you account for a few thousand dollars in transport.





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Gshenderson

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Pricing of Rivian in Canada was first released back in November and was based on an exchange rate of about 1.34.

Since then, the Canadian dollar has appreciated significantly. And currently there is a $6000 difference between buying a base model R1S in the US and applying the exchange, vs buying it in Canada. The delta gets wider on the R1T and if you add options.

This is already fairly significant, and based on the trend rate and expected market moves on the dollar, it is going to get even wider before launch.

Do you think Rivian will re-price Canadian vehicles? I hope so... otherwise it is not going to make sense to buy in Canada, it will be cheaper to buy in the US and import them even if you account for a few thousand dollars in transport.
I would guess yes. But it’s only a guess. They still claim that all pricing is subject to change until you lock in your order, but I’d be surprised if the US pricing changed at this stage.
 
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And, of course, that difference in price is further exaggerated by sales taxes.

The Canadian dollar could continue to rise somewhat if the price of oil keeps moving up. The glut of oil that existed shortly after the coronavirus hit, has largely disappeared.

So, ironically, we have to hope that as we sit here waiting for our electric vehicles, the oil industry prospers.
 

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I'm a little less optimistic... I seem to recall companies like to suggest that because Canada is a different, smaller market, there are increased costs with marketing, service, etc. So, all the to say, I think the price discrepancy would have to get pretty significant before they look at adjusting things.

That all said, I'd LOVE if they knocked a few grand off the price. Guess we'll see?
 
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I'm a little less optimistic... I seem to recall companies like to suggest that because Canada is a different, smaller market, there are increased costs with marketing, service, etc. So, all the to say, I think the price discrepancy would have to get pretty significant before they look at adjusting things.

That all said, I'd LOVE if they knocked a few grand off the price. Guess we'll see?
$6000+ is already pretty significant.
 

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I'm going to look at my crystal ball and say, yes, the pricing will likely be adjusted closer to delivery to reflect the exchange rate. When they launched the configurator and its pricing for each country, it was the US price, at the current exchange at the time. so fingers crossed!
 

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I watch the exchange rate all the time. I preordered as soon as it was available. I put in for the $67,500 US dollar but would like the $75,000 us one but the exchange rate and no gov rebate will depend on what I end up with in the end.....
 

Drterreur

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USD to CAD is even more favorable, now that the Canadian Bank has announced that they would step in to lower inflation last week (1.23 CAD for 1 USD)
 

PostMinivanDad

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USD to CAD is even more favorable, now that the Canadian Bank has announced that they would step in to lower inflation last week (1.23 CAD for 1 USD)
I sent an e-mail to CS this week to see if Canadian customers could pay in USD (I think it had been asked before, I thought maybe I would get something new)...Got the standard your guide will tell you answer. I doubt it will get much better than. 1.23, maybe 1.21. I might transfer the amount just in case in the next few weeks - it might end up being a decent investment even if they force us to pay the higher rate in CAD or they end up adjusting the price.
 

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As it happens, I was just looking up the numbers on themoneyconverter.com.

The current rate, supposedly set today, is US$1 equals CDN$1.227.

Taking the American base price of US$67,500, that converts to CDN$82,823.17. Is that large difference from the $90,000, purely change in exchange rate? Or, is there something else affecting the Canadian base price?

The US$10,000 for the battery upgrade to a max pack (working on memory, but I think that is right), converts to CDN$12,270.10.

So, if the price will fluctuate with the exchange rate and if the Canadian dollar doesn't do another belly flop, we could see some pretty significant price drops coming our way.

I know, I know. Those could be big 'ifs'.
 

cwoodcox

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Is that large difference from the $90,000, purely change in exchange rate? Or, is there something else affecting the Canadian base price?
Mostly. They may adjust the price up above the exchange rate to cover risk in foreign currency, tariffs, or whatever else. In reality the biggest issue is they will charge what Canadians will pay. If Canadians are willing to pay more than Americans for a truck, then they’ll charge more.

Overall I think that it will be adjusted, but I don’t think it will ever be totally in-line with the current exchange rate.
 

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Mostly. They may adjust the price up above the exchange rate to cover risk in foreign currency, tariffs, or whatever else. In reality the biggest issue is they will charge what Canadians will pay. If Canadians are willing to pay more than Americans for a truck, then they’ll charge more.

Overall I think that it will be adjusted, but I don’t think it will ever be totally in-line with the current exchange rate.
Rivian's expenses in Canada may not be fully explained by only the exchange rate. There is additional government regulation/testing/compliance. Even employing Canadians will have some differences when compared to Americans.
 

cwoodcox

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Rivian's expenses in Canada may not be fully explained by only the exchange rate. There is additional government regulation/testing/compliance. Even employing Canadians will have some differences when compared to Americans.
This is all true, but isn’t something we see replicated across the rest of the car market. Some cars are cheaper in Canada than in the USA.

Apple has a similar problem where they can set a price for a product and then the exchange rate gets more favorable and they could adjust it down, but they don’t simply because sales are just fine with the higher price, why not make more money? 😏
 

CommodoreAmiga

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This is all true, but isn’t something we see replicated across the rest of the car market. Some cars are cheaper in Canada than in the USA.

Apple has a similar problem where they can set a price for a product and then the exchange rate gets more favorable and they could adjust it down, but they don’t simply because sales are just fine with the higher price, why not make more money? 😏
Right. My personal opinion is that we'll almost always see companies raise prices when their costs go up, but rarely reduce prices since customers have demonstrated they will pay.
 

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