Lower U.S. car prices steer shoppers across border
Last Updated: Friday, July 6, 2007 | 4:45 PM ET
CBC News
Related
Video
- Reg Sherren reports for CBC-TV (Runs: 2:38)
- Play: QuickTime »
- Play: Real Media »
External Links
- Registrar of Imported Vehicles: How to import a vehicle into Canada
- The Automobile Protection Association
(Note: CBC does not endorse and is not responsible for the content of external sites - links will open in new window)
A growing number of thrifty Canadians are crossing the border for new cars and trucks as the dollar continues to rise in value.
Consumers, like Winnipegger Kevin Partridge, say the trip is worth the effort, even after factoring in import taxes, duty and the PST. Partridge purchased his 2006 Toyota 4-Runner on holiday in Dallas.
"We saved ourselves close to $10,000 — worth the trip," he said. "We're very happy with the vehicle and our experience has been good."
U.S. auto sales to Canadians have climbed significantly as the dollar has gained in strength, with sales last year exceeding 65,000 — a 50-per-cent increase over the previous year, according to the Registrar of Imported Vehicles operating under Transport Canada.
'As a consumer, someone looking for a certain vehicle, I can save thousands buying exactly the same thing in the U.S.'—Andrew Turner, consumer
George Iny, president of the consumer advocacy group Automobile Protection Association in Montreal, said the auto industry failed to change their prices as the Canadian dollar rose.
"Well, the industry just simply didn't adjust," Iny said. "They were just caught looking the other way."
Some carmakers are saying warranties may not be valid if the car leaves the U.S., although Toyota has confirmed it will honor the guarantee. Meanwhile, other companies are trying to deter American dealers from selling to Canadians, he said.
U.S. auto sales to Canadians last year exceeded 65,000 — a 50-per-cent increase over the previous year, according to the Registrar of Imported Vehicles operating under Transport Canada.
(David Zalubowski/Associated Press)
"You know, it is a little bit ironic that people in the industry beat their chest to promote free trade and are now engaged in certain forms of trade restrictions," Iny said.
"There are dealers in the border states in the U.S. who have been told that their franchises might be jeopardized if they were repeatedly caught exporting into Canada."
Consumer Andrew Turner of Winnipeg said he's conflicted about the prospect of crossing the border to buy a new truck
"I'd much prefer to buy a vehicle here in Canada and stimulate the local economy," he said.
But, Turner noted that he estimates a cross-border shopping trip could save him about $6,000 on a new truck.
"As a consumer, someone looking for a certain vehicle, I can save thousands buying exactly the same thing in the U.S.," he said.
Share Tools
Top News Headlines
- Air Canada confident it can reach deal with pilots
- Travellers flying Air Canada can keep booking their flights as negotiations continue with a new federally appointed mediator to help resolve an ongoing contract dispute between the airline and its pilots. more »
- Legalize pot, say former B.C. attorneys general
- Four former B.C. attorneys general are joining a coalition of health and justice experts calling for the legalization of marijuana. more »
- Whitney Houston's funeral to be held Saturday
- Pop star Whitney Houston's funeral service will be held Saturday in the New Jersey church where she first showcased her singing talents as a child. more »
- Online surveillance bill targets child porn: Toews
- A bill that would give police and intelligence agencies new powers to access Canadians' electronic communications is needed to protect against child pornography, says Public Safety Minister Vic Toews. more »
- Online surveillance critics accused of supporting child porn
- Whitney Houston's funeral to be held Saturday
- HMCS Corner Brook collision damage extensive
- Online surveillance bill targets child porn: Toews
- Legalize pot, say former B.C. attorneys general
- Mooning Queen proves costly for Australian man
- MacKay says submarine fleet has 'spotty' history
- Man kidnapped at Greyhound station escapes captors
- Stanley Cup rioter seen in brick attack on cop
U.S. auto sales to Canadians last year exceeded 65,000 — a 50-per-cent increase over the previous year, according to the Registrar of Imported Vehicles operating under Transport Canada.