Post by plaoliang;2634569
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Post by plaoliang;2634575
Should you buy your new car in the U.S.?
You may save loonies, but the process might drive you loony
Despite the alignment of the Canadian and U.S. dollars, there's a big difference in car prices across the border, especially when it comes to luxury models. The average sticker prices for new cars and light trucks is about $8,000, or 26 percent, less in the U.S. than in Canada, according to a recent Consumer Reports analysis. The difference on some luxury models runs to tens of thousands of dollars. With such gaps, it's hardly surprising that the number of new and used cars Canadians imported from the U.S. in 2007 has more than doubled in recent years, to 189,738 vehicles.
In response, some automakers are dropping prices and adding extra incentives on vehicles purchased in Canada. Many cars remain cheaper to buy in the U.S., however. Should you buy there? Here's what to consider:
Q Can I export the model I want?
Some manufacturers, including Acura, BMW, Chrysler, General Motors, Honda, Lexus, and Toyota, prohibit their U.S. dealers from selling vehicles for export. Such prohibitions, along with generally higher Canadian car prices, have spurred Canadian consumers to file a $2 billion class-action lawsuit and a discrimination complaint against automakers and dealers. While Subaru permits cross-border sales, it's making them less appealing by eliminating incentives to its U.S. dealers for cars sold for export, and Canadians who export U.S. Subarus no longer qualify for rebates or other incentives, says Joe Spitz, Internet sales manager for a Seattle Subaru dealer. As a result, he says, the savings for Canadians buying an Outback 2.5i from his dealership rather than in British Columbia dropped from $12,000 to $7,000. Moreover, we couldn't find a single carmaker willing to finance the purchase or lease of a U.S. vehicle headed north, which means you may not be able to take advantage of some promotions.
Q Will the car meet Canadian standards?
Canada prohibits outright the import of some 2008 and earlier U.S. vehicles because they can't be modified to meet Canadian vehicle standards. Other vehicles can be imported only after they've been modified to address Canada's safety requirements.
Q Can I get warranty coverage in Canada?
The U.S. warranty might be invalid in Canada or, as with Chryslers, invalid on both sides of the border once the car is exported. Even if the U.S. warranty is valid in Canada, some benefits might differ or be unavailable.
Q Are U.S. models and trim lines the same in Canada, and can I easily compare them?
Canadian and U.S. models might have different options, even when their options packages bear the same names. Some examples: Canadian-bound Toyotas come standard with heavy-duty alternators, batteries, and weather stripping, as well as extra paint protection. The base Volvo XC70 costs $9,720 more in Canada than in the U.S., but any potential savings are offset by features that cost $1,700 extra in the U.S., including heated front seats and heated windshield-washer nozzles.
Q Am I ready for the paperwork?
Importing a car involves red tape on both sides of the border, including advance notifications and inspections, that can take a week or longer. Erring along the way can delay or even undo the importation process.
Q Have I factored in taxes and fees?
Those could offset potential savings by thousands of dollars; see the checklist on the next page for details. For example, importing a gas-guzzler makes you subject to Canada's "green levy" of up to $4,000, and yet an imported fuel-efficient vehicle is ineligible for the federal ecoAUTO rebate of up to $2,000. Dependin
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