AUTO INDUSTRY REPORTER -- The long-standing advantage Americans enjoyed in cross-border vehicle shopping disappeared last year and now Canadians buying cars, trucks, minivans or sport utility vehicles in the United States hold the upper hand.

That's the conclusion of the annual price comparison of the two markets done by DesRosiers Automotive Consultants Ltd., which said the key reason for the change was the surge in the value of the Canadian dollar last year against its U.S. counterpart.

"Until this year, prices for vehicles in Canada, adjusted for exchange rates, have been considerably lower in Canada than in the U.S.," company president Dennis DesRosiers said yesterday in his monthly industry observations.

But for the 2004 model year, the average Canadian manufacturers suggested retail price was $34,323. The average U.S. price in Canadian dollars was $33,550.

The difference of $773 represents the first time since Mr. DesRosiers began making the comparison in 1999, that Canadian prices have been higher than U.S. prices after adjusting for exchange rates.

That compares with a difference of $5,168 last year and a peak of $6,236 in 2002.

The Canadian dollar closed yesterday at 76.51 cents (U.S.), up 0.17 of a cent on the day. At the end of 2002 the dollar was 63.39 cents.

The largest swing in prices was in large SUVs, which held an advantage of $8,426 (Canadian) for Americans when the Canadian dollar was low. In the 2004 model year, that had turned around to a $7,559 advantage for Canadians.

The increase in the dollar and hence Canadian prices has severely dented the so-called grey market, which involved brokers buying vehicles in Canada and selling them to Americans -- either because they were cars and trucks in limited supply or simply Americans looking for a bargain.

The increase has also wiped out the advantage Americans had in buying used cars in Canada, which has sent sales of such vehicles sliding to less than 100,000 from about 220,000 annually, Mr. DesRosiers noted.

"The increased supply of used vehicles in Canada is putting downward pressure on used vehicle prices in Canada," he said. "With these lower prices, the used vehicle market is actually up in Canada this year while the new vehicle market is very soft."