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Cross-border car shopping: What automakers are doing about parity
DAVID COOPER//TORONTO STAR FILE PHOTO
Most automakers insist they are working to keep Canadian prices competitive.
The loonie’s surge toward parity with the U.S. dollar has once again sent some Canadians south of the border in search of a new car.
We asked every major auto manufacturer that sells vehicles in Canada how they are addressing the parity of Canadian and U.S. currencies, and if the U.S. warranty on their vehicles was transferable to Canadian residents. Here are their responses:
Audi
“Audi addressed the gap in 2007 when parity first became an issue. To date our pricing remains based on our competitive segment.”
Warranty: “Transferable with no exceptions.”
BMW/Mini
“BMW has a clear pricing strategy, which is followed on a global level. We have lowered prices on some of our most important and most popular models, while increasing the value of others by adding more equipment.”
Warranty: “Yes, warranty is transferable. However, U.S. standard maintenance coverage does not apply in Canada. U.S. BMW vehicles must be converted to Canadian specifications by an authorized BMW retailer.”
Chrysler
“We are addressing this issue by offering extremely aggressive incentive programs, in addition to financing options such as the industry-first variable prime rate of 2.25 per cent up to 84 months or zero per cent up to 36 months on nearly every 2010 vehicle.”
Warranty: “No. There is no warranty coverage on a vehicle once it leaves the country of origin and is further sold or registered in a different country.”
Ford
“Ford of Canada prices its vehicles to be competitive in the Canadian market. Also, it’s important to note that MSRPs in Canada and the U.S. are exactly that, ‘suggested’ retail prices that do not include consumer offers and incentives.”
Warranty: “Yes. Ford of Canada honours the warranties in both countries.”
General Motors
“At GM Canada we strive to offer superior value and competitive prices for our Canadian customers. The gap between the U.S. and Canada on new-vehicle pricing is not as wide as it is often perceived to be.”
Warranty: “Vehicles purchased in the U.S. must accumulate at least six months of service and must have at least 7,500 miles (12,000 km) to be eligible for warranty coverage in Canada. As well, the cluster must be converted to metric units by an authorized GM dealer (costs covered by customer).”
Honda/Acura
No response supplied.
Hyundai
“Hyundai Canada took the initiative to lower prices in 2008 during the last ‘par dollar’ rally and maintained these lower prices on our vehicles. Also, we have continued with our Smart Advantage program whereby you can combine financing as low as 0 per cent on these lower-priced models.”
Warranty: “No. There is no warranty on imported vehicles.”
Jaguar
“Jaguar has a much higher value proposition when viewed against competitors here in Canada. We will be monitoring our market closely and will consider extra incentives to support sales.”
Warranty: “Best-in-class ‘Jaguar Platinum Coverage’ customer care, standard for all 2011 Jaguar models sold in Canada and the United States, will give Jaguar owners increased vehicle warranty coverage and the best maintenance plan in the business valid on both sides of the border.”
Kia
No response supplied.
Land Rover
“It is not valid to cross-border compare, but more appropriate to look at Canadian Land Rover pricing in relation to our competitors’ Canadian pricing. We will be monitoring our market closely and will consider extra incentives to support sales.”
Warranty: Yes.
Mazda
“Mazda Canada equips its vehicles to meet Canadian consumer tastes and our pricing strategy is to be competitive with benchmark vehicles offered in Canada.”
Warranty: ”Yes. Mazda Canada will honour the terms of the U.S. warranty.”
Mercedes-Benz
No response supplied.
Mitsubishi
“Mitsubishi Motor Sales of Canada is currently continuing to carefully watch the market.”
Warranty: “No. Any vehicles registered and operating outside of Canada are not covered under the terms of Mitsubishi’s Canadian new vehicle warranty.”
Nissan/Infiniti
“Nissan Canada plans, prices and markets Nissan and Infiniti vehicles in Canada based on our judgment of the market conditions in the Canadian market and our expectations of the sales potential of our products.”
Warranty: “Yes. However, the warranty is void if, during the first six months after delivery to the original owner, ownership of the vehicle is transferred from the original owner, and the vehicle is registered outside of the United States. Infiniti vehicles are exempt from the six-month rule.”
Porsche
“A Cash Currency Credit program is in effect to offset the U.S.-dollar disparity, ranging from $2,500 to $10,500.”
Warranty: “Yes. Customers who bring cars across the border must go to a Porsche dealer and have an inspection performed for $500.”
Subaru
“Subaru Canada has repositioned the pricing of our vehicles to be more competitive in the Canadian market and better aligned with the United States. While there is still a gap, Canadian models are often equipped with more standard features designed to meet the demands of our diverse climate.”
Warranty: “Canadian residents who purchase a 2008 or newer Subaru in the U.S. and register the vehicle in Canada will have two viable options for obtaining warranty repairs: return the car to an authorized U.S. Subaru dealer at no charge; or have the car repaired at an authorized Canadian Subaru dealer, pay for the repairs, then submit a copy of the repair order for reimbursement by Subaru of America, Inc.”
Suzuki
No response supplied.
Toyota/Lexus
“Since February 2008, Toyota Canada Inc. has implemented three phases of reductions to the MSRP on select Toyota and Lexus models. In addition, as we’ve brought new products to market for the 2010 and 2011 model year, the majority have been equipped with more standard features with little to no price increase.”
Warranty: “Yes. However, certain additional benefits offered by Toyota Canada in conjunction with a new vehicle purchase (such as roadside assistance) may not apply to owners of U.S. vehicles.”
Volkswagen
“In 2008 we reduced the MSRPs on all Canadian Volkswagen models when the Canadian dollar reached parity with the U.S. dollar. When it dropped to $0.78 one year later, we maintained the lowered MSRPs, and we continue to do so.”
Warranty: “No. Coverage of Canadian and U.S. Volkswagen new-vehicle warranties is different. For example, our Canadian warranty provides longer coverage while the U.S. warranty provides no-charge maintenance.”
Volvo
“Volvo Canada currently has a currency allowance program offering up to $9,000 to cash customers for a limited time.”
Warranty: “Yes. All Volvo vehicles sold in North America have a standard manufacturer’s warranty for North America.”
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