Is Cross-Border Shopping Worth The Trip?

CROSS BORDER SHOPPING: Is it Worth the Investment? In the second quarter of 2012, spending by Canadians traveling outside the country increased 1.5% (compared to Q1), accounting for a seasonally-adjusted $8.5 BILLION $5.2 BILLION $gS Over half of this money was spent in the United States, Is jumping over the border into the U.S. really saving you money? • ACTUAL VS. PERCEIVED SAVINGS DUTY-FREE EXEMPTIONS " Canadians out of the Canadians out of the country for 24 hours can bring back country for 48 hours can bring back $200 $800 worth of goods duty-free. worth of goods duty-free. Previous rules allowed for Previous rules allowed for only $400 worth of goods. only $50 worth of goods. Canadian Dollar vs. American Dollar When visiting the U.S., the Canadian dollar usually goes further - depending on current exchange rates. COST COMPARISON BOOKS WOMEN'S SWEATER In Canada: | In the U.S.: In Canada: C$32.94 14| In the U.S.: $29.94 5 C$33.50 13 $26.95| 32"TV E MILK In Canada: | In the U.S.: C$2,50/half gallon In Canada: In the U.S.: C$249.991) $229.99 l $250/gallon CAR TIRES RUNNING SHOES In Canada: | In the U.S.: In Canada: | In the U.S.: C$145.99 lio) C$142/each $123/each s $105.99 lol TRANSPORTATION AND ACCOMMODATIONS Traveling to the U.S. costs $175-$225/DAY AND COVERS HOTEL ROOM GAS FOOD ENTERTAINMENT It takes thrifty habits to spend less than $100/DAY Are You Really Saving Money? Once you add the cost of goods to travel and lodging, you may actually save more overall by paying the slightly higher Canadian prices. But if you time it right (holiday sales) and plan ahead, you may be able to score some great deals across the border. CASHMONEY SOURCES [1]http://www.cbc.ca/news/business/story/2012/08/29/tourism-spending-abroad.html [2] http://www.thestar.com/business/article/1244644-new-duty-free-limits-send- canadians-on-overnight-shopping-trips (3]http://www.canada.com/story.html?id=1c60555f-94ae-4b21-a741-12d8a25ec5bl [4] http://oldnavy.ca [5] http://oldnavy.com (6] http://www.bestbuy.ca/ 7 http://bestbuy.com [8] http://www.marketwatch.com/story/got-milk-canadian-shoppers-get-it-at-us- costco-2012-08-16 [9] http://www.apa.ca/tireinfo.canadavsusa.asp (10] http://www.bmonesbittburns.com/economics/reports/20120517/sr120517.pdf (11] http://www.lonelyplanet.com/usa/practical-information/money-costs