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Canadian Car Buying (for Canadian Consumers)
I am from Canada and am in the market for a new car. How do I get to know dealer cost in this country? In the states, many companies offer this service but I've been looking all over for something similar in Canada and couldn't find a thing! Do the american companies offer such a service for canadian customers or is there a way to convert the american dealer cost into canadian dealer cost?
Help!
Help!
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Comments
I looked a bit more and Edmunds says, "There is no surefire method that can be used to calculate Canadian invoice from U.S. pricing because of market-specific models, trim levels, and options. However, you might want to try calculating the percentage of markup between U.S. invoice and MSRP, and then applying that percentage to the Canadian car, working backwards from MSRP to establish a ball-park invoice amount."
(The answer is in Edmunds' FAQ.)
Hope this helps.
Sascha
Think it's the only way to go!
Here's a government site that has very good crash test information. Probably the safest, most reliable car on the market, if there is such a thing all wrapped up in one car, would have a very nasty price tag...the crash testing helps to make a decision on safety, and you might try a site like intellichoice.com for reliability issues.
http://www.nhtsa.dot.gov/cars/testing/ncap/
good luck,
Host
PS: Keep in mind that there is no such thing as a "safe car"...but some are safer than others...
It is a scam compared to US where everything is here on the Web for all to see for free. In Canada, there is no competition for APA and no one putting on the Web.
It needs to be done, but we are repressed up here it seems!!
or lease my new vehicle , also I reside in Canada
What is the "APA"?
Thanks,
Allan Kennard
Co-Host
What relevance is it anyway?
I think you'd need to investigate all the customs regulations and duties on importing new cars...I feel pretty certain that the US government has figured out all the ways to make this unprofitable. Maybe some of our visitors have first-hand info on the obstacles involved?
Don't even think about it! Unless you plan
on having your daughter plate and insure the
car in the province she resides in....and then
sell the car upon her graduation in Canada
when she returns to the states.
My experience tells me that some, but not
all cars do meet both US Safety and Emissions
requirements. To check for compliance, look
for the EPA sticker in the engine hood or
strut tower area. It is marked by the word
"Catalyst" and there will be a written paragraph
on the situation. Secondly, a safety and theft
placard must be posted in the door jam of the
drivers side. If only one is present, no good!
Now, to complicate matters further, some
actually do comply...but manufacturers and
dealers near the border don't want US
residents buying their cars...it could upset
market conditions for the US dealers. So, I
believe they deliberately will not put proper
US stickers on...even though they do comply.
If you really want to go through this bad
enough, check with US Customs and a
representative who works in auto importation.
They will have a complete list of cars that do
and don't comply. If your car is on that list,
but does not have the right sticker...then you
must write the manufacturer and ask them to
provide one for you. Your US or Canadian
dealer could help you there. But it helps if
the car has already been plated in Canada
first...because then if you decide you do bring
it in...it is now a used car, and the process may
be a bit easier...as long as duties are paid.
Hope that helps you out!
Let us know what you do!
There are several topics dealing with the
differences of carbuying in Canada, but they are
scattered and there is some duplication. This
tells me that people are not finding the info they
need, so a little reorganization is called for.
For now, let's put all the discussions here and if
we need to branch out, we can.
Thanks, Bruce. your co-host
Canadian Car Buying
in the hopes that we can all get together in ONE PLACE to discuss the issues with Canadian Car Buying.
See you there....
Bruce. your co-host
I recently purchased a '97 Acura CL premium in Canada for about $5,000 less than I could have gotten it for here in Seattle. Though there was quite a bit of red tape involved, it wasn't impossible.
For the full story see my post in conference 1650.
Car_man
Smart Shoppers / FWI Host
Thanks Car_man, that was an interesting article in Canadian driver & I will certainly check with the APA.
But does anyone out there know whether the dealer holdback applies in Canada. 3 dealers I have spoken to all say there is no such thing. If there is no holdback then I've got to think its been replaced by some other benefit to the dealer. Help me please... knowledge is power.
I do have access to Fleet pricing. Should I just go with that or is it possible to beat fleet pricing by negotiating with a dealer?
Re many of the earlier postings about US vs Cnd prices... I believe the reason for the difference is very simple, the manufacturers price their product to meet the economic & competetive conditions in each market. The fact that Canadian prices are cheaper than in the US when converted at current exchange rates reflects the fact that Canadians cannot afford to pay the same prices. If GM tried to price their products at the $US price converted to $Cnd they would not sell enough cars, so they make them "cheaper" (lol) for Canadians.
Don't forget that we also pay about 15% in sales tax when we buy a car in the Great White North.
BTW it is nice to see some Canadian content on Edmunds.
We are moving to Canada for about 2 years from the US. We also need to buy a vehicle and have been trying to find out if it is cheaper to buy one here or when we reach Canada.
Now I know
1. Canadian MSRPs seem cheaper after conversion to USD.
2. 15% sales tax in Canada as opposed to 6% here. But are there other taxes to consider ?
Thanks
plus: $100 air conditioning tax
plus: luxury tax of $75
Incidently I saved almost $4,000 off MSRP by getting to a good fleet manager
thanks to all of you.
Even if you are one of the few who knows what the Canadian invoice price of a car is, virtually no other buyer does. While everyone else is willing to pay near sticker price, you're offering 2-4% over invoice. Why should a salesman take your offer if he/she is getting a much better offer from the rest of his/her potential buyers ... well, unless they're really desperate for a sale.
I received a large number of emails, and responded with:
This is a form letter I drafted due to the large response from the Edmunds site. It should be easy for you to find a US broker near you -- and with the larger dealers in Ontario anyway it may be easier -- the taxes would still apply but I don't know what Ontario's provincial rate is -- again you would get it back.
Here is the scoop on importing a new car from Canada:
This isn't easy, or says all the research materials I found -- so when/if you contact the dealer keep this in mind if they say it's easy. I have included some web-links below that point to US Customs, Dept of Transportation, and EPA -- all of whom have some bureaucratic rules that have to be followed in importing a vehicle into the US.
Some of the restrictions on pollution controls, safety equipment, etc should be okay as our Canadian and provincial laws are similar to the U.S. == in fact, here in British Columbia our EPA-type laws were based largely on California's strict standards.
Pros:
The Canadian dollar hasn't been too strong lately - based on conversion rates today a loaded 2000 i30 Luxury with all options except Communicator (options included s/roof, heated seats and mirrors, traction control) that MSRP shows as $ 30,185 US can be had here for about $ 27,500 US (I paid before tax $ 26, 535 US).
Cons:
1. Availability of 2000 i30 is now as bad as the Maxima GLE/SE (got mine just in time) (COMMENT 99/11/03 - more available now)
2. You have to pay upfront 7% Canadian tax and 10% B.C. provincial tax -- but you get them back - you have to send rebate forms in.
3. You will have to deal with a US import broker because of the US government requirements (you may need a US spec speedometer for example).
4. You will have to pay 2.5% US duty because the vehicle wasn't manufactured in Canada.
Having said all this, according to the dealer it would still work out that you would save about $ 1000-2000 US overall if, and the big if... they could get stock.
Similar savings would be apparent on the Maxima if you could get it. At first glance there are whopping big savings on Mercedes (how about a 1999 C230 Classic at $ 25,500 US) but when I enquired he said it doesn't work. M-B voids the warranty if you buy the car here and take it to the US. According to the local dealer the Nissan/Infiniti warranty would be honored in the US, but obviously this is high on the checklists.
More info:
<<A HREF="http://www.customs.ustreas.gov/imp-exp2/informal/car.htm">http://www.customs.ustreas.gov/imp-exp2/informal/car.htm>
<<A HREF="http://www.nhtsa.dot.gov/cars/rules/import/">http://www.nhtsa.dot.gov/cars/rules/import/>
<<A HREF="http://www.epa.gov/OMSWWW/cert.htm">http://www.epa.gov/OMSWWW/cert.htm>
For more information on cars in Canada, one of the best sites I have found is:
<<A HREF="http://www.canadiandriver.com/index.htm">http://www.canadiandriver.com/index.htm>
Dave.
Now 2-4% might not be enough in the Canadian car market, I would use 3% as a starter and see where that gets you. I ended up paying 6% over but it was still $1200 cheaper than the best deal I was quoted without the invoice prices in my hand.
For car buying, I was told that if you use ratios and whatever you can find the approximate Canadian invoice price. Is this correct? Well...I used percentage...I found that for the Subaru Legacy L, the MRSP is 110% of the invoice. Does this sound correct?
Also, one dealer offered me a 3% dealer markup off the invoice price. What do you think of that? Good? So-so? Bad? Let me know please.
Jeff
From Edmund's, the 1999's original MSRP was us$30,460 (~cd$45,700), and invoice was us$27,871 (~cd$41,800). Now, as an used car, Edmund's lists its market value as us$25,270 (~cd$37,900) and trade-in as us$21,300 (~cd$32,000).
With the 17% tax in BC, I paid cd$41,000 for the car in total. That means the effective sales price was ~cd$35,000 (~us$23,500). So, the price on this unregistered new Canadian car was almost us$2,000 lower than its estimated Edmund's market value as an used vehicle, and my base warranty lasts until mid-2003. Moreover, my price included a Ram-Air hood (just the hood, no air-induction system), which was part of an us$2,300 option which I did not apply for getting Edmund's prices.
Sounds like you did well for yourself - enjoy your T/A!
kcram
Co-Host - Smart Shopper & FWI Conferences
edmunds.com Town Hall
Car_Man
Smart Shoppers / FWI Co-Host
- - - - - - - -
Buying a new car in Canada is not a problem
at all, no matter what you hear. I just bought a 2001 Nissan Pathfinder in the Toronto area and took it home to Minnesota. The most painless buy ever for me and I saved close to $4000. You just have to do a little research. The big savings of course is because of the strong US dollar.
Emissions and safety. There has not been a single car sold in Canada for the last three model years that does not meet US requirements. The manufacturer will give you a compliance letter saying that.
Taxes. You do need to pay some Canadian sales taxes (depends on province). But the govt sends you back a refund check if you take the vehicle out within 30 days (new vehicles only).
Customs. Just show the compliance letter, get the paperwork from them and drive on. Pay duty (2.5% cars and SUV's, 25% on trucks) only if vehicle was not built in the US or Canada (remember NAFTA?).
Registration. Just like registering any other vehicle in your state. Same taxes as if you bought it down the street. You do need to show the Customs paperwork to prove it was imported legally.
Warranty. Most all manufacturers honor the warranty in the US. For me Nissan verified this and put it into the US system with just a phone call. (Honda is an exception here - they won't honor the warranty in the US).
Speedo/odo in km. Change it to miles if it bothers you. Both my local dealer and the state DMV said no big deal either way. A good speedo shop can do this and provide documentation that it was done legally and properly.
Dealers. Many in Canada ready and willing to do business. The dealer that I bought from sells a number of brands and will take all the US business he can get. I did the transaction over the phone. This dealer and a couple others I know across Canada will discount deeply to just over invoice.
I'll be glad to help anyone with the details. As I said, it's actually easy. Yes, there are a few forms and a little work on your own part. But potentially you can save a bundle.
-Jon
jonlofquist@aol.com
- - - - - - - - - - - -
I got the VIN's of a couple of cars that I was intersted in. Using CARFAX, the regisration for all three was Quebec. Furthermore there were two-three registration changes. The cars were Accords, 93, 94 with 70000km, 99000km and 140000km.
The prices on these cars are pretty good. Cheaper than I have seen around.
Has anyone heard anything about cars from Quebec? I though I heard that odometer rollback was quite popular there....
just though I would check.
Looking for a sedan...probably Japanese...probably Honda!
I've been around for the last week or two. Its really hard work!!
Here's what my shopping experience tells:
#1. Having the dealer cost info did for me what it does for our neighbours to the south - enabled me to start negotiations from invoice up instead of MSRP down. No anxiety wondering what to offer the dealer, no fear over the negotiation process. In fact, as soon as the dealers heard that I had been researching via the internet they didn't fool around with any of the usual pricing games, most just gave me their bottom line and let me decide whether I wanted to buy or not. Price was negotiated in a matter of minutes, no stress, no hassle. Just pleasant shopping.
#2. The dealer invoice price seems to be the actual dealer cost. No holdback beyond dealer invoice as there is in the US. Dealer invoice, plus ~9.25% mark-up, 3% holdback, 2% advertising, destination charge, and minus any factory invoice credits (the Canadian Driver formula), pretty much totals up to the MSRP. So buying at or below invoice like in the US doesn't seem to be realistic; these guys have to eat too.
#3. You can't simply convert $USD prices to $CAD
prices. Canadian prices are generally lower. GM acknowledged this when it raised 2001 prices to bring the profitablity of Canadian sold cars more in line with US sold cars. So unless the ratios are the same, we can't use the the pricing info available on the internet. Unfortunate, I really envy the Americans for having things like Edmund's TMV. Hope they realize how good they have it.
#4. While having the dealer invoice info greatly improved that end of the buying process, the hassle at the business office end is still there. And I haven't even experienced the high pressure sales for extended warranty, paint protection, fabric protection, etc, yet. Thank you Edmund's, Lemonaid, and all the other folks who educate consumers on this stuff, I'm prepared to say no to paint and fabric protection, and to negotiate for the extended warranty. Wonder how much cheaper and more pleasant buying a car would be if the number of unnecessary dealership people a buyer had to pass through were reduced?
#5. Canadian dealers like to run the documentation fee scam too. For some reason they don't seem to think that filling out the tax and registration forms, typing up the sales contract, etc., is part of the cost of doing business. Many are proud that theirs is only $95, and spring it on you as an added cost, well after you've negotiated your price. My dealer backed off when I refused to pay it but they weren't too pleasant about it. I seriously considered walking out and, looking back, maybe I should have. We'll see what transpires when the car actually arrives from the factory.
#6. Compared to Americans, Canadian buyers are really disadvantaged when it comes to 3rd party extended warranties. There are a lot of them available on the internet but not too many sell to Canadians. And those that do are US based, which raises the complications of paying $USD premiums and deductables, and I don't even want to think about consumer protection rights in the event there's a dispute. Canadian-based extended warranties seem to only be available through dealers, so you know that unless you can find a couple dealers willing to compete with each other, they've got us over a barrel. Carcostcanada told me they hope to make an extended warranty available sometime in the future, hope it's soon. I'd love to hear about other Canadian's experiences with extended warranties, both factory and 3rd party. Maybe we should start a topic on it in the Finance & Warranty section?
Can't wait to see what happens when the car arrives. In shopping I chose dealer quality over lowest price. Hope I didn't choose wrong.
This is just the basic model with the air conditioning, radio, cd, audio anti-theft and power locks group option.
Some sites to try:
AutoByTel.CA
Chariots.COM
CarPoint.CA
Cars4u.COM
All these sites will let you do comparisons on Canadian models, which is not always the same or available in the US (e.g. Civic Si-R, and Acura EL). Like they say "knowledge is power."
There are probably others, but these are the ones I look at most. My friend saved a couple of thousands (compared to the best dealer price he could've gotten on his own) on his Accord by going through AutoByTel. I am waiting for delivery of my 2001 Acura EL. I will probably write an article about my experience once the deal is complete.
Still waiting for the EDMUNDS.CA website ;-)
Carcostcanada was closest to the dealer cost data a dealer showed me. But the APA has counsellors to advise you if you become a member.