Canadians Gouged on New Car Prices
An American car built in Canada could cost more than $10,000 more up north than it does in the United States. While there have always been differences in US and Canadian car prices and selection (they get the Nissan XTrail and Acura EL, for example, which we don’t), much of the blame is placed on an anti-theft law from 2007 that prevents many new cars purchased in the US from being registered in Canada.
Technical differences include differences in bumper, security, and headlight standards. Here’s a list of modifications required to register a 2011 Ford Mustang GT in Canada:
– Immobilizer – Already installed when you order the Security System option
– Child Tether Anchors – Already factory installed on all Mustangs
– Recall Letter – Aquired from my U.S. Dealer on U.S. Ford letterhead. accepted by RIV.
– DRL’s – this is the tricky one….
The Daytime Running Lamp (DRL’s) Modules in the US sourced Fords are already in the vehicles, they just don’t turn them on.
My US dealer was happy to activate them, but was unable.
Reason, US Ford Dealer computers need a “password” from Transport Canada to activate the DRL module via the computers in their service departments. This “password” is not provided until Form 1 is filled out at the border.
That’s why we can only get them activated at a Canadian Ford Dealer as their computers can somehow access Transport Canada servers to retrieve the necessary password.
– Sales Tax – This issue goes out the window as there is no sales tax in Montana, and no sales tax in Alberta.
– GST – paid at the border.
– Driving Home
Total Savings: Over $8,000
Government officials are accused of using the law to manipulate the market to boost the profits of auto makers, creating unnecessary barriers to importation. Of course, using the word “import” is technically inaccurate as several cars sold in the US are actually built in Canada including top sellers like the Camaro, Chrysler 300, and GMC Sierra.
The Canadian auto market is essentially caged, driving up prices by artificially limiting the size of the market.
Here’s an example of a new Cadillac CTS coupe in Canada compared to pricing in the United States:
The Canadian price for the EXACT same CTS is $13,727 higher, a difference of more than 18%. Even before figuring in taxes, the difference in MSRP exceeds $10,000.
This Ford Explorer is sold in Canada for $7,164 or 15.55% more than in the US.
According to a commenter, Canadian authorities allow manufacturers to specify which vehicles can or cannot be certified for Canadian use.
“I spoke to woman at Transport Canada once I found out my Form 2 was not coming and my 08 Toyota Tundra is now inadmissible. TC told me the manufacturers give them a list of their vehicles they will not allow. Way to go Government let them police themselves!!
TC could not tell me why it is on the list and that the manufacturers do not need to give them a reason to place it on the list!! Wow!”
Even if you import a car, saving thousands of dollars, you’re faced with several restrictions:
–Canadians are ineligible for special financing deals. Some cars have to be purchased outright or with Canadian lines of credit.
–Most US dealers will not sell new vehicles to Canadians.
–A “recall letter” from the manufacturer is required from the manufacturer, which can come with huge fees.
–The warranty may not be honored by the manufacturer.
The situation has improved over the last three years:
Details on how to import a car from Canada:
http://www.riv.ca/ImportingAVehicle.aspx
This is yet another example of corporations using big, intrusive government to screw over consumers.
Follow this issue at Cars Without Borders
Canada sucks. I live too close to the border. Every time it gets really cold it’s because their weather invades across the border. Obama should declare war against Canada for weather aggression, which should be considered a WMD.
NUKE OTTOWA! NUKE OTTOWA!