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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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#323 of 391 by kcram HOST Sep 02, 2002 (4:53 pm)
Replying to: dusti (Apr 16, 2002 3:53 pm) TB, your question was: So why is it ok for Ford to move cars across borders and not individuals?   Here's why titled versus untitled DOES make ALL the difference: Ford is "selling" the car to the dealership - the dealership is NOT the end user! They are the retailer who in turn will sell the car TO that end user. The dealership will not be driving the car. And Ford can't sell directly to a consumer.   As far as warranty coverage is concerned, your Beretta wasn't brought to Germany in an attempt to save money on the identical domestic product. GM was honoring warranty work on a US-spec vehicle, bought in the US buy a US citizen, who happens to be overseas in the military. It was a goodwill gesture for GM because parts needed would have to be flown over from the US at considerable expense.   The equivalent situation to the US/Canada gray market would be (and this is pre-Euro monetary unit), a German citizen goes over the border to Belgium and buys a BMW because it's cheaper there, then brings it back to Germany to register and drive it. The issue is, someone from a given country going over the border to buy a product that is domestic to them because the foreign country sells it for less. Because the auto industry does not retail directly to the consumer, they are losing money on a Canadian gray market car because the invoice price is ALSO less.   TB, make yourself the producer/manufacturer. You build Widgets in the US. You also sell these Widgets in Canada, but they're cheaper there because of the exchange rate and the market is substantially smaller, so you make less on a Canadian-sold Widget. You also have to mark the Widgets destined for Canada in Metric units. Aren't you the least upset that US citizens are going to Canada and buying your Widgets for less, which reduces your income on that Widget than if you had sold it in the US to the same person, the customer then goes to a fourth-party shop to install US measurements, then this consumer demands the same level of after-sale service despite the fact they are slicing your revenue stream that helps pay for that very service? "Morally right" is a nice idea, but it doesn't pay the bills in big business. Not saying I agree with it or even like it, but that's the way it works.   kcram Host Smart Shopper and FWI Message Boards
#324 of 391 kcram by tboner1965 Sep 02, 2002 (5:48 pm)
Replying to: dusti (Apr 16, 2002 3:53 pm) So you are saying it's ok for a company like Ford to take advantage of exchange rates and lower labor costs by moving production to whatever country they chose, but it's not ok for customers to try to take the very same advantage as the manufacturer.   Sorry, if it is right for Ford (or others) to produce where labor and exchange rates are in their favor, then they should allow their customers to do the very same.   I guess I'm just a big boy scout, expecting a company to act in a non hypocritical fashion.   Yes, I know businesses are in the business of making money. However, they should try to take advantage of their competitors, not their customers. It makes for happier customers.   And no, I wouldn't be upset. I would want smart happy customers, and stand behind my product. I would require a certification to ensure that the vehicle didn't get the odometer set back, requiring an authorized dealer of my product do any conversion at the price they set to keep the warranty in effect.   I think it is reasonable to put reasonable conditions on the warranty, but to simply deny coverage because your customer understands math and exchange rates doesn't earn any customer satisfaction.   If my production costs are the same, I do give up some profit margin to sell in a different country, or maybe I make more by selling in the country. But one would hope that I'm not selling at a loss in that country, because then it makes no sense to sell there at all in the long term.   TB
#325 of 391 So now it's morally right by landru2 Sep 02, 2002 (6:08 pm)
Replying to: dusti (Apr 16, 2002 3:53 pm) to take advantage of currency exchange rates for personal gain at the expense of other consumers (in this case Canadian consumers)! To heck with them right?   Yeah, you sure wouldn't want those big companies acting like hyocrites.
#326 of 391 landru - It's ALWAYS been OK by alfox Sep 03, 2002 (2:54 am)
Replying to: dusti (Apr 16, 2002 3:53 pm) to take advantage of currency exchange rates for personal gain. Individuals and corporations have been doing that for centuries. That's how money traders make their money. And, it's ALWAYS been at the expense of other consumers. Any monetary gain is at the expense of someone else. That's called economics.   When I vacation in Quebec I benefit from the advantageous exchange rate at the expense of US tourism locations who did not get my business. That's OK, right?
#327 of 391 landru2 by tboner1965 Sep 03, 2002 (4:02 am)
Replying to: dusti (Apr 16, 2002 3:53 pm) Yes, it is ok for people to take advantage of exchange rates.   Or would you have us believe that only Americans take advantage of exchange rates. You would have us believe that Canadians don't travel, or when they do, they make sure they don't take advantage if the exchange rate benefits them. Please sit down and get a firm grip on reality. Anyone will take an advantage as long as it is legal. And it is ok too.   Or should I complain if I go to an auction and someone with more money out bids me? That's your argument in a nutshell. US consumers have more money than Canadian consumers, so they shouldn't be allowed to buy goods in Canada.   So please make sure you don't travel to a nation where the Canadian's average income is higher, or your currency more valuable, than that of the nation you visit. Otherwise, you too will be taking advantage of your situation at the expense of those folks.   Oh, and Canada isn't really selling toilets to US consumers who can't get anything but low flow units here. Shouldn't Canadian plumbing supply shops refuse to sell toilets to US citzens since they can't even buy that type of toilet in the US? I say no, they have an advantage, so capitalize on it.   Puuleeeze. Businesses take advantage of these rates everyday when the have the chance.   My problem is when these very same businesses then prevent their customers from doing so.   Remember, free markets, that's my mantra. Let those who appear to be at a disadvantage find their areas of relative advantage.   TB
#328 of 391 Exchange rates ..? by rroyce10 Sep 03, 2002 (4:29 am)
Replying to: dusti (Apr 16, 2002 3:53 pm) ..... You can't knock any (legal) market that takes advantage of their product and that demand for that product ..          Canada has some great boat builders that are making some excellent products. Their retail prices are in line with most of ours (including Searay) .. the difference is, they pay about 1/2 the price in labor and materials .. plus they get a huge "tax" placement from the Canadian govt. So their profit margins are 30/40% higher than the American counterparts -- So should we trade them cars for boats ..?        No, that's their advantage .. so instead of the average US boat dealer making around 30%, the Canadian builders and dealers are making well over a 50% profit .. .. so who do we punish .? The buyer has the decision to purchase a Canadian boat or a US manufactured name -- it's the buyers decision.          Terry.
#329 of 391 Your arguments are with other consumers, not me. by landru2 Sep 03, 2002 (10:06 am)
Replying to: dusti (Apr 16, 2002 3:53 pm) The issue with cars is slightly different than with toilets or other products. If Americans were buying so many toilets that Canadians either couldn't buy them or would have to pay much higher prices for them, then yes, I think you'd see some backlash.   As you know, I sell the things. My paycheck doesn't depend on who buys them. Your justifications need to be made to your fellow consumers, not to me.
#330 of 391 But is it really the Canadian consumer by tboner1965 Sep 03, 2002 (10:16 am)
Replying to: dusti (Apr 16, 2002 3:53 pm) or is it the US dealers/carmakers that don't want the warranty.   I seriously doubt the Canadian consumers are lobbying the car makers based in the US and Japan to prevent US shoppers from crossing the borders to buy cars.   Instead, it is probably US dealers who are doing this.   Of course that is pure speculation, but I doubt it is far from the truth.   So if my speculation is true, it is the businessmen who are against this sort of free trade and not the consumer.   You probably don't see the backlash on the toilets because they probably are only made in Canada, so their are more jobs in the Canadian plumbing fixture industry   TB Who learned that even in Germany, plumbing is done on the "inch" system. Drives the Germans batty.
#331 of 391 No, the consumers are not lobbying ...yet. by landru2 Sep 03, 2002 (10:34 am)
Replying to: dusti (Apr 16, 2002 3:53 pm) But every one that comes in looking for an F-350 either knows already or knows by the time that they leave that they are paying higher prices because of U.S. exporters.   Regarding the toilets, I could be wrong, but aren't they only available in Canada because it is illegal to sell them in the U.S.?
#332 of 391 Yes by tboner1965 Sep 03, 2002 (11:04 am)
Replying to: dusti (Apr 16, 2002 3:53 pm) Canadian merchants are assisting US consumers who wish to skirt US law.   Not a good story for either party in the transaction.   TB

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