With the Falling Canadian Dollar, does it make sense to buy Canadian Vehicles?

[XDCX]

With the Falling Canadian Dollar, does it make sense to buy Canadian Vehicles?

Largely due to the huge drop the market has experienced with oil prices, the value of the Canadian Dollar as contrasted to the U.S. Dollar is at an almost 10 year low - trading for just .79 cents as I type this post.

While the high value of the Canadian Dollar in the past allowed some U.S. dealers to profitably sell cars to Canadian customers, the current situation may provide profit opportunities for dealers who are willing to wade through the bureaucratic process of buying Canadian vehicles at a wholesale auction and then importing them into the U.S.

While I don't have any experience associated with importing vehicles from Canada, I know that at least one of our members does and I wanted to create this thread so our members could discuss the opportunities and headaches associated with importing vehicles from Canada.

[XDCX]

Here are the questions I would have if I were thinking of importing vehicles from Canada:

• Does it make financial sense? Are the prices of Canadian vehicles purchased with U.S. Dollars low enough to make it worth the time and effort?
• How difficult is it to get the vehicle across the border and then titled with a state issued local title?
• Are there any taxes you have to pay as a result of importing a Canadian vehicle?
• Are there any issues with U.S. EPA or NHTSA Safety standards?
• Should a dealer expect any "pushback" from their OEM if they're importing nearly new vehicles from Canada?
• Are there any warranty issues? Will the OEMs still honor a warranty issued to a Canadian vehicle that's now titled in the U.S.
• How much does it cost to fix the speedometer to read in MPH as opposed to KPH?

I know it's a long list so please don't feel obligated to answer all the questions. If any of our members have insight into the above questions or others that haven't been asked, please feel free to jump into this thread and share your thoughts.

[mryan55]

Here are some first thoughts for those of you who may be in border markets where importing is a possibility.

With the current strength of the USD versus CAD, you can end up ahead just on exchange rate. This link is to the used inventory of a Windsor, Ontario CDJR dealer right on the US/Canada border. Look at the 2012 Grand Cherokee SRT-8 that's done 38,000km (23,500 miles). It's retailing for $46,000 -- probably the same dollar amount it would retail for in the midwestern states. At today's exchange rate, that C$46,000 Jeep would cost US$36,500. You're $9,500 ahead before the other costs of importing, and that's using another dealers retail price!

With the US Federal safety standards and EPA requirements virtually identical to the Canadian Motor Vehicle Safety Standards and Environment Canada emission regulations, most any vehicle built in NAFTA and exported from Canada to the US shouldn't need any testing. You would have to pay gas guzzler tax if the EPA said so -- however our Grand Cherokee example is a light truck and exempt...

At the order you just inform the US CBP officials that you are importing a vehicle, you take a trip to inspection, fill out some forms, and go on about your day most of the time.

Since any vehicle we would import is 'conforming' there is no need to use a registered importer or have the vehicle tested for emission and safety. We have a wholesaler title the vehicles in Michigan, where it's an every day occurrence, and we only apply for Indiana title after selling the vehicle.

We have never heard anything from any of our OEMs regarding importing, but we usually stick to 3 to 6 year old vehicles, for a reason I will mention below...

...FCA US LLC, General Motors Co., and I have to imagine any other OEM will not honor the Canadian warranty in the United States unless the vehicle is still owned and registered to a Canadian resident at a Canadian address. If the vehicle is still under warranty, we usually stay away simply because, in the case of FCA US LLC, this vehicle is also ineligible for ANY Chrysler-branded warranty. Our sweet spot in vehicles that are just out of warranty.

A new gauge cluster, reprogramming, etc. will depend on the vehicle... Figure $1,000 on the absolute high end, $200 if it's something like a JK Wrangler where there's a ton of used parts available.

[XDCX]

mryan55 - Thank you very much for the information.

I spent a few minutes searching the inventory of the CJDR Dealer you linked and the prices seemed cheap when you convert the dollars at .80 and the kilometers to miles at .62.

If you would, I'd still like more information about getting the vehicle over the border. Do you buy most of your vehicles and have them shipped across the border or do you occasionally drive a vehicle back from the auction?

When I've looked into importing vehicles from Canada it appeared it was a major cluster where the end buyer had to contact the EPA and NHTSA and fill out a bunch of forms. There was even some verbiage that suggested the undercarriage of the vehicle needed to be pressure washed to ensure there were no plants or seedling that could be imported to the U.S.

I think many of our members who are close to the border would be interested in importing vehicles from Canada if the process wasn't too burdensome.

[57years]

As a follow-up question, I am looking at a used Toyota Tacoma with a "Canadian" title in its Autocheck history. (can't get a carfax, but why would it be different?) Should I be concerned?

[mryan55]

I wouldn't worry about it too much. If you want to private message me the VIN I can run a Carfax for you... but there's really not too many knocks against the Canadian units. In my experience with Wranglers in particular there's a bit more rust here and there if they are 8-10 years old or older.

I don't know what it is with Quebec, but units that come from Quebec seem to live tougher lives than others.

[XDCX]

Originally Posted by 57years

As a follow-up question, I am looking at a used Toyota Tacoma with a "Canadian" title in its Autocheck history. (can't get a carfax, but why would it be different?) Should I be concerned?

Is the vehicle still under warranty?

The only concern I can think of would be if the OEM limited the length of the warranty if the vehicle was exported from the country it was originally sold in.

I know in the old days Chrysler was trying to clamp down on the number of vehicles that were being imported from Canada by reducing/restricting the warranty coverage.

[57years]

No, 2007 unit. But mryan22 answered all my issues. Forum is smart and generous place. All of you should be aware of just how valuable each of you is to every other one of us!

[mryan55]

Originally Posted by XDCX

Is the vehicle still under warranty?

The only concern I can think of would be if the OEM limited the length of the warranty if the vehicle was exported from the country it was originally sold in.

I know in the old days Chrysler was trying to clamp down on the number of vehicles that were being imported from Canada by reducing/restricting the warranty coverage.

I can't speak to every OEM, but Chrysler totally scraps the warranty when the vehicle is imported to the US from Canada. Not a big deal on 2010 and older which would be out of warranty any how, but a bit more of a concern on late model.

[XDCX]

Originally Posted by mryan55

I can't speak to every OEM, but Chrysler totally scraps the warranty when the vehicle is imported to the US from Canada. Not a big deal on 2010 and older which would be out of warranty any how, but a bit more of a concern on late model.

Thanks for the update.

It would be interesting to know how each OEM handles vehicles that were initially sold in Canada and then exported to the U.S.

I know in Chrysler's case the problem of vehicles being exported from Canada was such a problem at one point that it was a front-page story on Automotive News. To the extent the problem wasn't as large for the other OEMs I wonder if they are more lenient?

[XDCX]

Ii thought of this thread on Saturday when I saw a banner ad on the Internet indicating that Adesa Richmond was having a live auction and guests could watch for free.

I watched the auction for a bit and noticed that 100% of the vehicles being sold were from Canada. I mistakenly assumed the auction was U.S. based but it was actually based out of Richmond BC in Canada - near the border of Western Washington.

I thought it was interesting that the auctioneer was disclosing the total dollar amount of accident/repair work each vehicle incurred while it was on the road. In some cases the dollar figure was upwards of $10,000 - $15,000 in other cases it was nothing. I'm wondering if the Canadian Government collects that data from the Insurance Companies and requires its disclosure?

In the event you're curious, here's a link to the auction - click here

The next auction is on Wednesday at 7:00 PM West Coast Time.

[XDCX]

Originally Posted by XDCX

The next auction is on Wednesday at 7:00 PM West Coast Time.

Well that information is WRONG....

The auction's banner ad mentioned a 7:00 PM auction on Wednesday and the auction is physically located in the Pacific Time Zone.

When I went to check out the auction last night at about 7:30 PM the auction was already over - that's when I noticed the small print on the website that indicated the auction would start at 7:00 PM New York Time.

It's not a huge deal but I bet I'm not the only one who missed an auction because they assumed the time used in the banner ad was the local time, not New York time.