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Importing Canadian Vehicles to the U.S.

391 messages,  Last post on Dec 07, 2008 at 6:29 AM

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What is this discussion about? Car Buying


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#120 of 391
allchecks by dusti
Apr 16, 2002 (3:53 pm)
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looks like the ones along the border...
 
already have spoofed the racket.
 
forget 'em.
 
looks like to get all of the savings into your OWN pocket, you have to go into Canada.
 
like INTO Canada.
 
How far away is the capital of the Northwest Territories?...
#121 of 391
Gray Area by Car_man HOST
Sep 04, 2002 (2:02 pm)
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Replying to: dusti (Apr 16, 2002 3:53 pm)
#122 of 391
Gray Area by Car_man HOST
Jun 25, 2002 (9:37 am)
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Replying to: dusti (Apr 16, 2002 3:53 pm)

Could you be purchasing a vehicle imported from Canada? Read our guide to the gray market before you close the deal: Gray Area - What You Need to Know About Canadian Cars in the U.S.. As usual please feel free to use this discussion to post your thoughts on this particular article or Gray Market vehicles in general. Thanks.
 
Car_man
Host
Smart Shoppers / FWI Message Boards
#123 of 391
Thanks by masspector
Jun 25, 2002 (10:07 am)
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Replying to: dusti (Apr 16, 2002 3:53 pm)

for opening this discussion. I read the article and I think it is a crock what the manufacturers are doing. My points:
 
Why is the car so much cheaper in Canada? It should cost the same in both countries, they are both fairly similar.
 
And why not honor the warranty? Are canadian cars not made as good as american cars?
 
I do not understand why a manufacturer would do this...why do they care if they sell 10,000 cars in canada and 100,000 in the US or 100,000 in Canada and 10,000 in the US? Don't they make the profit on a sold car, whether in the US or Canada?
#124 of 391
by kirstie_h HOST
Jun 25, 2002 (11:27 am)
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Replying to: dusti (Apr 16, 2002 3:53 pm)

From what I could gather, it doesn't seem to be the manufacturers; rather it's the dealerships -- I could be wrong.
 
mass, I *think* the difference is in the profit. If a dealer makes, say, $1000 CAD profit on a vehicle, that's not worth as much as $1000 USD. And the demand for particular vehicles is different in the US than in Canada, and thus they can get a near-sticker price in one country and well below sticker in the other.
 
But it seems that, by not honoring the warranty, manufacturers are hurting the (seemingly) innocent consumer rather than the illegal importer, no? How could they hit the importer where it hurts?
 
kirstie_h
Roving Host
Edmunds.com
#125 of 391
How much does a Canadian car cost... by andre1969
Jun 25, 2002 (11:34 am)
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Replying to: dusti (Apr 16, 2002 3:53 pm)

...in relation to the average Canadian buyer's salary? For example, let's pretend my $20K Intrepid cost $15K in Canada, once you factored in the exchange rate. However, if the average U.S. worker makes $40K a year, but the average Canadian makes $30K a year (again adjusting for the exchange rate), then the U.S. and the Canadian workers both have it equal.
#126 of 391
by kcram HOST
Jun 25, 2002 (2:40 pm)
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Replying to: dusti (Apr 16, 2002 3:53 pm)

(today's exchange rate is CAD1.52 to USD1.00, or CAD1.00 to USD0.66)
 
Andre, you pointed out the problem. When adjusted, the Canadian car is less to the US buyer, and that's why they want it. Doesn't matter that domestically, the car's price-to-income ratio might be the same. It works both ways, though... ask a Canadian who lives near a US border crossing where they buy gas.
 
kcram
Host
Smart Shopper and FWI Message Boards
#127 of 391
reply by masspector
Jun 26, 2002 (3:22 am)
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Replying to: dusti (Apr 16, 2002 3:53 pm)

kirstie: It is the manufacturers that are making a big push to stop gray market. Yes they are getting pressure from their american dealers, but the manufacturers are the ones doing it. Read some of the QX4 boards or ask landru2 (he is in canada for Ford). They have been sent lists of known exporters and cannot sell to these people. The list comes from the manufacturers. There are also posts of letters from infiniti, ford, nissan about this matter on a number of TH borads. I am sure that the manufacturers are not getting equal profit for the cars in both countries, this would not make sense. They should be making more profit on the car in Canada to compensate for the exchange rate difference.
 
andre: I see what you are saying, but in MHO it is irrelevant. It should not matter what the countries average income is. The cost to produce the car is $xx,xxx. I want to sell it for $yy,yyy to the dealer. I should set my $yy,yyy price to equal the profit I want in my local currency. I do not think that manufacturers make a consious effort to sell at lower prices to dealers in countries that have lower average incomes. I could be wrong, but that does not make any sense to me. If I want to make $6,000 USD profit, I should set my selling price accordingly in whatever foriegn currency, so that it equals $6,000 USD profit when the car is sold to the dealership. Following this example, I guess I should find the country with the lowest average income and then try to buy a $100,000 MB for $5,000 and then ship it home.
#128 of 391
actually, mass, i think they do,.. by dusti
Jun 26, 2002 (4:36 am)
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Replying to: dusti (Apr 16, 2002 3:53 pm)

The manufacturers use the relatively wealthier markets (US) to subsidize their market incursions into relatively virgin or newer markets (Canada, et. al.), so as these markets develop, they already have a foothold.
 
Then they get all bent out of shape when free trade (which they're all for since then they can take capitalize on the cheaper markets for making their stuff to sell in the wealthier markets) means the customers in the wealthier markets can also BUY the stuff there.
 
Are they stupid or what...?
 
nah, just hypocritical as all get out.
#129 of 391
Mass .. by rroyce10
Jun 26, 2002 (5:25 am)
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Replying to: dusti (Apr 16, 2002 3:53 pm)

....... We have spent months going over this subject .. I'm sure there is a topic open on it somewhere.
 
       The bottom line is: The manufacturers won't allow it. The Canadian dealers were dropping the vehicles through NY, MI, WI, etc. Most were, and are showing up at the auctions and as late, the traffic has slowed down.
 
       See the point is .. the Canadian dealers will drop off, lets say 40 vehicles at the auction (they have to be declared) .. let's say they turn and burn 30 of them there. At that time, they have made at LEAST 30% more (per unit) than if the vehicles were sold up north. So there was droves of them popping up ... and that doesn't include the 2,000+ a week that go rolling through the border for US customers at stops in MI and NY, that folks pay 4/7/$10,0 less than American for.
 
      Well anyway, some have little difference .. some have some large differences, interiors, colors, options, warranties, etc. The most important difference is, the .. mileage. The speedo is on KM .. not MPH. So when these folks buy these vehicles from Canada the speedo reads in Km and they go to the local "converter" in NY, or wherever, pay $800 and have converted over to MPH.
 
      The one thing the customer has forgot is: the title ... The title will show Canadian .. KM when they go to sell it, the miles on the vehicle become TMU .. and the vehicle is worth about 1/2 of what a normal vehicle would be worth.
 
      As of late .. Honda, Nissan, Chrysler and a few others, have slapped the dealers in Canada with $250,000 fines, that seemed to slow em' down -- So Chrysler, followed Honda and all 03 Chryslers will void the factory warranty if bought here in the USA ...
 
      So that's the gist of it .. I would just recommend you don't purchase a Canadian vehicle. It's not that they have a bad product, it's as good .. if not better than ours. But, that is marketing and can cost a consumer big $$$ at the end.
 
         Terry.

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