As the dollar approaches par we hear about people who think they are getting a deal by purchasing products from the United States when in fact they are not. Here is a little scenario that should make you think twice…

Let us say that you have a 2004 Corvette and you want a new license plate surround. Retail price for this part at Ultimate Performance Car is $30.45 while US pricing from a major US retailer is $29. Shipping from Ultimate is $12 while the shipping from the US retailer is $14.

If you were to purchase this part from the US, you need to factor in the following additional costs.

Exchange – current exchange rate is just under 3% right now.

Conversion charge – the credit card and banks charge an extra 2.5% to exchange US dollar purchases made on your credit card. This is a little known fee but it adds up. Check your statement, it is there.

Shipping – shipping into Canada is always about 10 to 30 percent more than shipping inside Canada.

Duty – this item is made in Taiwan, which means it is subject to 6 to 7 percent duty on the purchase price.

Brokerage – this item is subject to a flat fee of about $21 for the courier company to bring the item across the border.

Disbursement – the courier company charges a flat fee for paying the taxes for you. This is usually just under $7.

Taxes – you are subject to whatever taxes are applicable to your province. You are also subject to the GST on the brokerage and disbursement fees you pay the courier companies.

That same part from Ultimate Performance Car shipped to Ontario with taxes would cost $47.97 while the same part from the US to your door would be $80.10.

You would have paid 67% more for the same part if you bought from the US instead of Ultimate Performance Car. Thousands of customers have learned that even if the dollar is close to par, it is still a better deal to buy from Ultimate Performance Car.