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2820 Princess St. Kingston ON 613-384-2005 |
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By way of introduction my name is Bill Fellows. I am the chairman of the New Car Dealer Association here in Kingston. The purpose of this contact is to inform Canadians of the realities of cross boarder shopping. The media is currently absorbed with this topic, however they seem to be simplifying the logistics of these purchases. Yes, consumers can visit the U.S. for the purchase of new vehicles. They should although be prepared for a multitude of challenges that will await them. Not all vehicles are NAFTA exempt. This simply means that the vehicle you purchase may be subject to a 6.1% surcharge upon entering Canada. In addition U.S. Bills of Sale, Certificates of Title etc. are all subject to a 72 hour title search at Canada customs arrival. This is not the time you want to find out about various liens against your new car. Consumers need to be prepared for an array of fees , such as, Transport Canada's vehicle import form $209.00, brokerage fees from $150.00 as well as additional import fees. U.S. vehicles may or may not comply with Canadian emission standards. This must be confirmed by the consumer and an additional fee will be charged by the U.S. manufacturer for letters of compliance if in fact they do comply. American vehicles are not required by law to have daytime running lights, and, as we are all aware Canada transport does require this in order to be licenced. Daytime running lights and modules can vary in cost depending on the model.....it can be expensive. The issue of warranty is another BIG consideration! Consumers need to know that most manufacturers have different warranties in different countries, not unlike many other industries. The majority of manufacturers honour warranty out of the country on a transient basis only. Your new American vehicle may be warranty exempt when you land it in Canada. Another consideration in your next new car purchase is financing. American Dealers are unable to offer discounted interest rates on conventional retail purchases ie: loans as well as any lease programs that you will be entitled to in Canada. Simply put, when you choose to purchase a vehicle in the U.S. you need to make your own financing arrangements. To validate these undisclosed costs, consider the purchase of a $30,000.00 vehicle. If a consumer were to put this on a line of credit @ a rate of 6% V.S. 0% available through most manufacturers for 60 months, they would incur $5282.80 in additional interest costs. These compiled expenses soon diminish any proposed savings. Last but not least, consumers need to consider what recourse they will have against an American dealer. "NONE" Even if a dealer was inclined to help, geographically it's not feasible. Many consumers make additional purchases based on their service experience, I can assure you there will be little to none. The Kingston New Car Dealer Association appreciates value. We are all consumers in one way or another. The purpose of this letter is to simply ask for consideration when our community looks for replacement vehicles. We have and will continue to contribute to a long list of Charitable Organizations within our community. I truly feel that visiting the new car franchise of your choice, may surprise you with the value they have to offer, as well as the long term service relationship you will need. Thank you for your time and consideration. Bill Fellows Chairman Kingston New Car Dealers Association. |
