There has been a lot of talk in the Canadian media these days regarding cross border car shopping. The topic has become a daily discussion within the industry, as dealers try to benefit from the cheap prices to the south and manufacturers try to stem the flow of cars into Canada.
Recently we discussed the problem of the price differential from the US to Canada, but we didn’t go into any real dollar details other than the Porsche 911. Most of us will never buy a new 911, so that’s not a real world comparison. Why don’t we see what the differences are for the rest of us and see if it really is worth the effort to buy from south of the border.
As regular readers know, we are fond of Nissan’s Xterra here in The Garage so it’s a great place to start. The 2007 Xterra with Off Road package and a 6 speed manual transmission starts at $36,548 here in Canada. The same vehicle in the States sells for $26,200. With the current exchange rate of only $1.06 that works out to $27,772 Canadian dollars. That is a difference of $8,776 or 25% savings. Let’s consider that the Xterra is one of the most reliable vehicles Nissan builds and most owners have few if any warranty concerns. If it means that it can’t receive warranty service here in Canada, is it really an issue? Nope, not for us. For our needs it would definitely be worth the trip to Buffalo to pick up a new truck with no warranty.
Not everybody is into the Xterra though, so let’s check out a bunch of popular current models. Bear in mind that some vehicles we get up here aren’t sold south of the border and likewise there are some US only models. All prices are for the basic vehicle before options.
Infiniti G35 Sedan
Canada $39,990
USA $31,450 ($33,337 cdn)
Lexus IS
Canada $36,550
USA $30,255 ($32,070 cdn)
Acura TL
Canada $42,500
USA $33,725 ($35,748 cdn)
Chrysler 300
Canada $29,515
USA $25,120 ($26,627 cdn)
Toyota Camry 4 cylinder
Canada $25,900
USA $18,570 ($19,684 cdn)
Toyota Camry Hybrid
Canada $32,000
USA $25,200 ($26,712 CDN)
Honda Accord 4 cylinder
Canada $24,800
USA $18,625 ($19,742 cdn)
Honda Accord Hybrid
Canada $38,090
USA $31,090 ($32,955 cdn)
Nissan Altima 4 cylinder
Canada $24,398
USA $20,080 ($21,284 cdn)
Nissan Altima Hybrid
Canada $32,998
USA $24,990 (26,489 cdn)
Ford Taurus
Canada $30,899
USA $23,245 (24,639 cdn)
Chevrolet Impala
Canada $25,230
USA $21,490 ($22,779 cdn)
There are 13 cars, all are sold in Canada and the United States. On average, the difference (with the dollar at par) is a whopping $5345 per car. These are average, middle of the road cars. As we’ve seen, on vehicles at the upper end of the stratosphere the gap can be more than some folks earn in a year.
The question is: Is a $5345 savings on an average car worth the trip south of the border? The answer isn’t as simple as it might seem.
In part Deux of this post, we will visit the ups and downs of cross border shopping.
18 comments ↓
How much is a Primus?
I have had it explained to me that the warranty issue is complete BS. If the companies were taken to court they would all lose.
Also the only company right now that is not honouring warranties is Honda.
As far as pricing goes these are not choose’s the dealers are making, but decisions coming straight from Ford Canada, GM Canada, VW Canada etc. The dealers are getting the raw end of the stick here. Some GM dealers are even using there ability to move cars across the border as a way to save their customers money, and as well just get a sale.
Given my position within the industry, I have to be careful what I say, but there are far more than Honda who are playing the warranty game.
J- how about $22,175 vs $31,280!!!
Hi,
Recently traveled to N. Carolina. E-Class Mercedes costs $13000 CAD less after conversion. The dealer was very clear that if we bought this car and took it across the border (declaring it) he would have the right to sue us. (They make you sign a waiver). This to me sounds like a NAFTA violation; has anyone got any information on this.
Chatterjee - I’m not sure about that either way. I do know that dealers for some brands can get into trouble with their manufacturer for knowingly selling cars to cross border shoppers. Many do not care, as they want to move units.
I’ve investigated the issue and contacted the Lexus dealership in Buffalo (where I could save up to $13000 on a fully loaded ES with a 94 cent dollar). This despite paying the penalty of 6% GST and 6.1% duty because it’s not North American made. I was informed that Lexus policy is not to sell NEW vehicles to Canadians (unless they have a US address too) but that they are perfectly willing to sell any used vehicle to Canadians for export back to Canada (they’ll even do the paperwork for customs).
Does anyone know if this is a common policy amongst other auto makers / authorized dealerships?
i am thinking of going cross border shopping for a mew car,honda,toyato,volkswagon.where would be the best place to check out and what do i have to watch out for.thank you harvey
Harvey, follow the links at the bottom of this post: http://thegarageblog.com/garage/cross-border-car-shopping-bringing-it-home/
Hello
I have been told that their is a company in Toronto On.They will do all the leg work, and paper work ,for the customer,is this true.
Thanks.
Hi Gary,
I intend buying a Nissan Versa auto with cvt transmision in the USA and bringiing it home to BC Canada. Please would you give advise on the warranty applicability on page 4 of there booklet as it seems to be interpreted as that there warranty holds good for USA and Canada as long as the ownership is not transfered within the first 6 (six) months. I look forward to your reply,
Kind regards Carlo.
PS What is your opinion on there CVT transmition?
I will say: Let’s stop shopping then! It is a fact that Canadians consumers are being reaped off, and retailers are reaping the benefits. As consumers what are we getting? The grief ! that’s it. And yes it is worth it to go south and shop. If we continue doing it, eventualy retailers will lower their prices to stay competive. Therefore, let’s stay together against unfair prices, we are not dumb, and we deserve a better quality of life, “THE REST OF US”
Why are the prices of new cars in Canada not the same here as in the U.S. now that are dollar is worth more than the U.S. dollar and the same for goes for a new Harley motorcycles in the US.
I just bought a brand new Honda S2000 from a dealership in Nevada for $29,500. The same car starts here (Edmonton, Alberta) for $53,000.
It cost me $3,700 at the border for GST and 6.1% duty. Then I had to pay an RIV fee of $206 for the Federal inspection. It cost me nothing to bring the car up to Canadian standards because the it already had daytime running lights and a digital speedometer that you can change from Miles to Kilometers at the push of a button. The only annoying thing is that the outside temperature gauge is in Farenheit instead of Celcius.
So I got a car worth over fifty thousand dollars for $33,406. I saved just under twenty thousand dollars.
I don’t care about the warranties because Honda cars are bullet proof (nock on wood) and even if I have twenty thousand dollars worth of car trouble over the next 5 years I still will have saved money.
I don’t care about the Canadian car dealers because when I bought my first car here they didn’t hesitate to take advantage of my youth and stupidity and now I don’t mind returning the favour and taking advantage of them and their recent weakness.
It seems like cars are a little cheaper in the areas hardest hit by the mortgage crisis going on there and the dealerships in those areas seem a little more willing to play ball with Canadian customers. My dealer even showed me the warning letter from Honda USA about them losing their authorized dealer status if they sold to foreign buyers but he said he was willing to ignore the letter until they got really serious and gave them an official warning.
So happy hunting fellow Canadians. Do your homework and you will be fine. Plus the Canadian Dollar has improved quite a bit since I bought my car so you stand to save even more!
So, I am going to buy a Nissan Xterra. I like drove the car and I like the part time 4×4, low range, frame on body, tough cargo interior, power, ride, I could go on and on. I could buy a used 2007 (these are US cars at Canadian Nissan dealers with remaining warrantee) up here in Canada for the same price a a new 2008 in Nevada or Washington state. Has anyone heard of any new developments since this thread started in the summer of 2007, this is Jan 2008? My sweet dependable Jeep Cherokee is still running but sadly it is time for a new car. I am looking forward to your replies.
I Just purchased an American used 07 Mazda CX-9. ( touring edition 2wdr)
Found it on our local Ford dealers lot here near Windsor Ontario.
They brought it in, and had it listed at $29,000.00 can.
I purchased it at $28,000.00.
They took care of all the paperwork. I am to have the odometre and speedo changed this week at their expense. Waiting for the parts.
This car is listed at $ 40,000.00 canadian for colateral purposes. My bank even gave me prime lending rate 6% as I financed part of it.
Figuring out the details of the warranty. Am being told by Mazda Canada, that the US warranty’s are being honored in most cases after these vehicles are being brought over.
The “Canadian” Dealer, Sales Rep. made money.
The local canadian Mazda dealer will make money.
Revenue Canada got their money.
This is made in Japan.
How can the list price NEW be 20% + higher in Canada than in the U.S.?
I feel no grief for not paying the going canadian price.
I purchased it from a Canadian Ford Dealer!
I say “KUDOS” to my local dealer. He did all the work…
I scored!
Try looking at the Canadian “border citiy” dealer, at the “almost new” stock. You might be surprised. I was!
Zoom, Zoom, Zoom
Carlos (#12) couldn’t be more ignorant on a subject he thinks he’s an expert on. Canadian retailers and being screwed more than consumers. Retailers have no choice but to buy there inventory from canadian distibuters, where consumers have a choice. Ratailers are watching there busineses go down the drain, while consumers think they are making a killing! I m not suggesting that we all pay more because we feel sorry for the retailers…just asign blame to the right party - honda, mazda, vw ect canada for letting this happen. They feel if they lower their prices now, they will only have to raise them big time in the future, when the dollar balances out. Blame corporate, not your local retailer trying to make half as much profit on a sale as an american retailer!!!!!
Solid Dean(#14) doesnt care about the canadian dealer either (because of a bad experience in the past) Did you ever stop to think that the people who work at canadain dealerships (and other retailers) are your neighbours, friends, family members. They ARE your local economy! If we all can’t wait to cross the border to shop at american businesses, who are we really hurting? When your home drops 20% in value, don’t wonder why - its attitudes like yours that forced your community into a economic decline. There other ways to make a protest. Start with finding out why the cost of doing business in canada cost so much more for car companies …I for one will feel good about picking up my new Nissan Murano next week from my local canadian dealer. Hopefully the salesman who sold it to me (and gave me a very FAIR deal) has some dispossable income now that he can spend at my local shop.
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