Car shoppers head south as loonie soars

Buyers say that Canadian autodealers haven't reduced their prices to reflect our strong dollar, so travelling across the border makes sense to those looking to save some money.

"Until the prices on the dealership lots change to reflect the parity in our currencies, there's a window here for car buyers to stretch their dollar," says Zabin Somani, a Vancouver Island resident who bought her car from the U.S. and imported it back to Canada.

Somani says she's been overwhelmed by questions from other Canadians wanting to do the same thing. So, she has set up a shopper's website to help others.

American dealers confirm they're seeing Canadians more and more.

"We're seeing Canadians here pretty much every day now," says Don Chahley, a car dealer in Bellingham, Washington. "Obviously, the Canadian who comes down here and saves several thousand on a car, when they get home they're going to show it to all their friends and neighbhours," says Chahley.

They then show others: "Look what I bought, look what I paid, they're going to come down here too."

But if you're thinking of going South to buy your next car, there are a few things you should know. Some dealerships won't sell to Canadians. Toyota, along with a number of other manufacturers such as GM, Audi, and Volkswagen, all have agreements with their dealers not to sell to Canadians. So, if you want their products you have to get them in Canada and you'll likely pay more.

Also, you'll have to pay duties and taxes, and some provinces will require an inspection for your new American-bought car. You will also want to make sure your car's warranty will be honoured in Canada.

But in the end, you'll save money, says Somani. The deals downs south are so good, she says she's already preparing a buyers guide for boats.

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frank
said
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Most of your comments are based on the premise that the Canadian dealers are not willing to reduce prices. This is wrong. Vehicles are priced by the manufacturer. Canadian dealers would like nothing more than to be able to sell for the same price as American dealers. Most vehicles have less than 10% mark up at full manufacturers suggested list price.

Chris Rumbold
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My wife recently bought a second hand Subaru here in Canada. We discovered last weekend when we were doing some shopping in Washington that we could have bought the same car there new for $3000 less.

It�s bad enough knowing that we earn less and get taxed more than our American neighbours, but to think that we have to pay more for the same goods and services is a complete insult. No wonder our standard of living is so much lower.

Even when our dollar was at the $0.62 cent level we were still being charged more. Until Canadian companies stop fleecing us and bring their prices into line with what they are charging in the US I am going to be shopping south of the line.

Furthermore, Europeans are now enjoying the benefits of a single market and prices that are starting to converge. It just makes you wonder what�s happened to the NAFTA agreement, and the same single market principals it was meant to foster here.

JF - Toronto
said
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Sure, why shouldn't Canadians be able to buy where they want? The tactics used by dealers and manufacturers to prevent Canadians from going south should be illegal anyway under the free trade agreement. It's the govt's fault for not enforcing the benefits of free trade for all of us. If the brand Mfg is being protectionist don't be a sap... buy another brand! There's lots of other quality brands out there. For ex. my understnading is that Toyota WILL honour the warranty on a new imported car. With such a strong dollar prices should be reduced here immediately and inflation should be zero at most. Its the consumer's fault here if it is'nt... as usual Canadians are too complacent. Be a bargain hunter. Also there are companies and even some used car dealers out there who will import new for you on an order basis anyway and they'll do all the paper work (for a profit of course).

LH
said
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To John:

Like many Canadians I live less than a 2 hour drive to my closest American city which has all the various new car dealerships, so driving south to the US to get something done on warranty isn't a big deal. Plus the new cars made today are pretty much problem-free. Secondly I keep my vehicles for 10+ years so depreciation isn't a concern either. If you can save several thousand dollars then why not consider this as being a viable option to paying higher Canadian prices!

Joe
said
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Hey John I saved Over $12,000 buying my car in the U.S. I talked to the company and they will honor my warranty in Canada but hell I can drive across the border and get the work done for less anyway. Even if its not covered by warranty. You car dealerships need to wake up. As for you short term savings I don't know what you're talking about. I don't think I will be losing $12,000 any time soon by having my car in Canada.

Ace
said
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Uh, sorry John, but you are also posting misleading information. Depending on the car's manufacturer, warranty is indeed honored here in Canada:

http://www.apa.ca/template.asp?DocID=253

Nice try to deceive us tho' :P

Jim
said
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John;
If I am reading your comment right, not only will you potentially lose the first sale to the U.S. dealer, but you also are going to lose the trade in deal on the next one. Car dealers must start to understand that using fear tactics will not work. You should be looking at fixing the inequity rather than scaring people back to you.

John
said
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2008 Subaru Tribeca

you can compare the prices on mns.com(american) and msn.ca(canadian)
It's like 31000 and 54000

this would be ok even with a 30% loss, but subaru gives warranty.

Jeffrey
said
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The name of the Case which states that Canadian dealers must do warranty work on U.S. cars is:

Toyota Canada Inc. v. Lipetz, 1998 CanLII 4473 (BC S.C.)

I recommend anyone purchasing a car print off this case to know what Canadian Dealers are OBLIGATED to do under warranty.

eber
said
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So what happens to free trade when it comes to consumers? It's alright for manufacturer to move their factory overseas because of cheaper labor but not okay for me to buy a car down south because of cheap price?
So people, ask your friend and relatives living in the state to buy the car for you. As for warranty, unless its a lemon or not a "reliable" brand, you won't need one. Just make sure you follow your maintenance schedule religiously.

Jeffrey
said
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As a lawyer, I can state that there is a Canadian Case Law which states that unequivocably car manufacturers cannot void warranties on the basis of the car being purchased in the U.S. It is a shame that dealerships continue to take this ridiculous position. The fact is we are being gouged and their is no justification for that whatsoever anymore.
Furthermore if their is indeed a 30% 'loss' on trading in your car, sell it privately. We all know that dealers do not give you fair market value on a trade in.

Harvey Corman
said
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My family went to the States 2 weeks ago and were shocked at how cheap everything we wanted or needed was. We even bought using Canadian dollars on par. Our neighours to the were just happy to see Canadians returning to help their economy.

Dave
said
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To John,
Not all companies will require your warranty to be done in the US. I bought a used US branded Kia at a Canadian dealship and I am covered at any Canadian dealership.
Perhaps you should consider selling US vehicles at your dealership?

Doug
said
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I don't like shopping in the USA just to save a few dollars.I have generally thought that if we want to have our standard of living,jobs, and things like "free" health care,we also need to support the Canadian economy.
However, having said that,in recent years I have become so disgusted by price differences that are so much higher than the currency difference,and the high level of taxes in Canada,that I am going out of my way to shop elsewhere. Most often the USA.
I buy most of my gas in the USA. It's a bit inconvenient, but I save quite a bit. And it's the only way I can register my objection to the level of taxes on fuel in Canada.
More and more I am convinced we should register our objections to unreasonable prices and taxes by voting with our wallets as often as we can. If enough people do it,the socialists will eventually catch on. Even they're not stupid enough to miss the point.

Dave Kroh
said
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Buying a car in the U.S.A. is often EASIER than buying one in Canada.

U.S. dealers are far more competition oriented than Canadian dealers. U.S. dealears typically sell UNDER invoice. Will quote you a firm price over the internet. No "admin fees", "glass etching fees" and other blatant extra cash grabs, and they provide a firm price quote via email.

Paperwork is extremely minimal, most dealers know how to handle it for Canadians. See www.RIV.ca. As far as the cars meeting Canadian specs, typically all that is needed is daytime running lights - about $50 at Canadian Tire, who will also certify the car to meet Canadian standards. Certification cost is included in the $190 import fee. That's the ONLY import cost. You pay no tax in U.S.A., just PST/GT in Canada based on the U.S. selling price - and then you get your plates. Your bank may be willing to finance you - if you have a good relationship with them.

I saved $15,000 CDN + tax on my Subaru Outback - and it was EASIER than purchasing the same car in Canada.

Car manufacturers attempting to stop Canadians from buying in the U.S.A. are arguably illegally violating trade rules, and are certainly guilty of egregiously unethical behaviour.

Extremely hypocritical of them too, as they lobbied hard to benefit from free trade for themselves and their manufacturing operations, but then want to turn around and deny that same benefit to their customers.

Our competition bureau seems to be nothing but a corporate lackey. Heads need to roll at that department for failing to protect Canadian consumers. In the U.S.A. consumers successfully sued Toyota for collusion, for trying to stop Americans from buying Canadian Toyotas, when the American dollar was worth $1.60 Canadian, and cars were cheaper in Canada.

If the manufacturer attempts to stop/dissuade you from purchasing in the U.S.A. then tell them to go you know where and instead purchase from another manufacturer. For example Subarus are significantly MORE reliable than Toyotas and are far superior cars. Toyota/Lexus does not even have ONE single car model on the IIHS top safety pick list, whereas EVERY car Subaru sells is on that list! Honda whines openly about new government fuel tax rebate rules, while simultaneously trying to force Canadian consumers into paying obscenely high Canadian prices by denying (arguably illegally) warranty coverage. WHY would you want to purchase anything from a manufacturer so intent on ripping you off that they will stoop to sleazy, unethical practices? I will never again purchase another Honda or Toyota.

Don't get mad, get even - take your business elsewhere to a car company that respects you as a consumer.

LS
said
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If I have a Canadian purchased vehicle and travel on holidays in the US, is my warranty not honored? Same for US citizen on vacation in Canada. Why then would the auto maker not honor a warranty, regardless of where it is purchased. If Toyota and others prevent their dealers from selling to Canadians...STOP buying Toyota! In many cases the vechicles are produced in the same plant, just shipped to different locations. Auto Manufacturers and Dealers need to wake up.

Sierra
said
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To the two dealers who commented, you're not convincing anyone.

The reason why dealers don't want to lower prices is that they had to buy the cars from the manufactures at a lower exchange rate, (most likely a contracted exchange rate for cross border transactions set once a year, probably around 0.85 cents to the dollar)

There's no way Canadian dealers want to take the loss on the exchange they want to convince their customers to do that.

But for a new car yeah there are lots of risks, lost warranty etc. but for a used car? I'd go across the border.

Toyota, GM, Audi, VW, what are you thinking?
said
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Fundamentally, what is wrong with Canada and Canadians. Our dollar has nearly the same worth as the US dollar. Yet we argue about warranty and return value. As far as I'm concerned, any Canadian who pays a higher price in Canada for a car that they could in the US is just stupid. Hello!!!!! Give it Canadian up dealerships. Demand your brands be fair to you and Canadians. I guess it just makes Canadians feel good to pay more than the US for things. Or, in this case it makes Toyota, GM, Audi and VW feel good because Canadians are stupid enough to keep buying them in Canada. Another B.O.H.I.C.A. specially for Canadians.

Dulak
said
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GregM, many of the cars sold in the States are build here in Canada. You're essentially getting the same product.

Darren
said
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A couple more things to correct from people:

- you will not pay DUTY on a vehicle produced in the US, Canada, or Mexico, due to NAFTA. The first digit of the VIN indicates where it was produced. You may end up paying duty on a VW, for example, but not a Dodge or Ford.
- If a dealer is going to try to rip you off by saying you have a 30% less resale value than a CDN vehicle, then tell this lying greedy nobody that you will sell it privately, or better yet, trade it back in down the US for another US vehicle
If companies like Toyota won't sell to CDNs, then we should be boycotting them. Buy a different vehicle (if you're fixated on imports, then buy a Honda, which happily honors the warranty in Canada) then drive to the Toyota dealership with it and say "You just lost another 20 grand due to your short-sighted sales issues."

Darren
said
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Mike
said
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The best deals are on daily rentals units which are 6 months old have had generous fleet discounts applied and are now sold 6 months later, brought into Canada many times thousands lower than CDN dealer cost! I'm sure your '2nd Chance Auto' will be happy to help you. Find a reputable used car dealer and chances are they have already been doing it and can take your order and process the paperwork for you making it real easy.

Al
said
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This website is also a place for Zabin Somani to help herself, it's another online marketing website. I'm sure she's thankful for the advertising CTV just gave her and will sell a lot of books!

Mike
said
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Buying a car in the States just makes sense. There is no justification for Canadian dealers to sell a car for up to $10,000 than a US car. If you tend to drive a car into the ground then you won't need to worry about depreciation. If you live close to the border then getting warranty work done in the States isn't that bad. I think that Canadian auto dealers need to learn that trying to charge "what the market can bear" no longer works. We have the internet and can see how much the same car costs just across border. We will be buying our next car in the US. It's a no brainer.

Kris
said
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John (The Franchise Dealer)

Since you are a dealer, perhaps you can tell us why we are being ripped off as our dollar continues to climb?

Dealership greed?

reid robertson
said
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It is too bad that these people have to go to the US and buy a car. What would have happened to our prices if we followed this mentallity when the dollar was 63 cents. Most of us couldn't afford to buy a Cavalier. Think about it people, if people went away to foreign markets and affected YOUR paycheck in any commodity, what would you do? I hope this person who bought in the States needs service at her local dealership, and consistantly falls to the back of the line!

EB
said
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Don't forget you'll have to pay 206$ to enter the car into the RIV program, GST and PST on the Cdn value, Duty on vehicles made outside North America, 100$ tax for a/c, possible gas guzzler excise tax, any modifications necessary to bring it up to Canadian safety standards, and Canadian Tires stamp of saftey approval.

Darek
said
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Hi John,

Who want to trade to a dealer? To get robbed again? Get a grip on situation. In general the importing vehicle is fairly painless process. I did it last months and could not be happier with my purchase. I got a 2006 top of the line Pathfinder LE SUV (leather, DVD, Navigation) for less money that brand new, lowest of the line Pathfinder in Canada. And that's including shipping the SUV! What really blows me away is the fact that in spite of truck being made in USA, the price in Canada is thousands of dollars more than in the US. What conversion rate are they using? Nice way to pad your profits.

richie
said
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I'm sorry John the car dealer, should we just agree with you? Should we just ignore the fact that the most over-taxed country in the world has worked and worked and worked, constantly being told, "Canadian productivity isn't so great"... And then now that it's time to reap the benefits, we get more tax and no relief? I'm sorry, maybe you should go sell cars in Moscow dude, this is supposed to be a democracy.

Consumers rule the day
said
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John, Please put down the proverbial crack pipe. Canadians aren't as stupid as you assume they are. There is as much as a 50% price difference between cars sold in Canada compared to the US. Three years ago, they were roughly equivalent. Is it really in the consumers' best interests if auto manufacturers can't stand behind their products regardless of where their owners live? I bought my car, a Nissan, in the US and dealers in Canada will happily provide warranty service. It's simply good business.

Mr Trade.
said
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Reply to John,

I've bought in the U.S on a couple of occasion now and I would like to add that you are also misleading the buyers yourself.
Your warranty work is only necessary if you buy a new vehicle. So no worries if you buy something that is a year or older.

On the subject of trading, well, I traded both vehicles in Sask.

And both times I ended up with the value that I wanted compared to what I've seen in the trader magazine.

The whole purpose of my purchase was to trade in canada for a new vehicle with warranty.
No problem so far.

Done the research
said
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It is not true what John said. He's trying to save his business.

Your car depreciates the same way.

I've found SUV 10-20K cheaper, with identical options.

I've also found dealers that will sell to Canadians, do the research.

RB
said
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Don't get scared off, do the research. Some manufacturers will honour the warranty. Call and ask the US office. Last I checked Volvo US will honor the warranty as long as the repair was done at a dealer. I'm sure there are others as well. I read somewhere Ford will as well (makes sense same family). have a look at the following

Buying as car in USA
http://www.importcartocanada.info

CAR IMPORT AND EXPORT REGULATIONS
http://autopedia.com/Export/ImportExportRegs.html

LIST OF VEHICLES ADMISSIBLE FROM THE UNITED STATES
http://www.riv.ca/english/US_vehicle_admissibility.pdf

IMPORTING A VEHICLE INTO CANADA
http://www.tc.gc.ca/roadsafety/importation/menu.htm

AUTOMOTIVE RECALLS AND TECHNICAL SERVICE BULLETINS, YEAR SELECTION
http://www.alldata.tsb.com/TSB/yr.html

Federal Registrar of Imported Vehicles: 1-888-848-8240

Canada Border Services Agency (Border Information Services): 1-800-461-9999

John
said
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Hi,

I am a Franchised Car Dealer in Canada. This article is full of misleading information people should now when they purchase a vehicle from the U.S. The person in their story will have to do warranty repairs in the U.S. and will take a 30% loss on top of the initial loss of depreciation when they trade it in to a Canadian dealer. Short term savings only.

GregM
said
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Don't worry about warranty. You will not spend the thousands of dollars on repairs that you would save by buying in the US. New cars are generally worry free.

Liberals Suck
said
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Finally Canadians fighting back. Good for them. Buy in the US until prices here drop like they should.

Sandra
said
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I am on my way to America.
Shop till I drop.

Ali
said
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This is great!
If Toyota dealers and company won`t sell new vehicles to Canadians, then buy used ones. What difference does it really make whether a vehicle is 0 year or 1 or 2 year(s) old?
Canadian auto dealers have to come to their senses before we all head south for sweet deals!

Steven Booth
said
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Cars? I've been doing this for my health care for years! Not because the price is better, but because of the rapid availability of medical care. No lines, excellent doctors & nurses, and treatments that Canada has as yet not allowed to be performed in this country.

Just more Canadian cash being infused into the American economy by shortsighted policies here at home.

Brian O'C
said
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What this website sells for 9.99 is available for free at:
www.riv.ca

A former dealer insider
said
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The main problem with buying a 'brand new' car from the states is that you may lose warranty coverage. With GM, they will void the warranty, unless the car is older than 6 months and 12,000 km's (10,000 miles). Unless that has now changed. For used cars in Canada...dealers greed will continue to prevail. They're already importing used cars (wholesale) from the US to max-out their Gross Profit margins, and of course "GROSS" the consumer. Take a trip yourself and don't let Canadian dealers excessively 'GROSS' you. Happy hunting. :)

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