Canadian Car Dealers Fight For Business

With the Canadian dollar surpassing the value of the US dollar, thousands of Canadians flocked south to pick up their new vehicles often saving thousands, and in some cases tens of thousands of dollars.

Canadian car dealers are fighting back by offering incentives to buy locally through cash back, rebates, and reduced financing rates. While the price gap remains, many shoppers are being swayed back to the local dealerships as the complications of importing a vehicle are no longer worth it.

Nissan Canada Inc. has now given [dealerships] the tools needed to be a bit more competitive, in the form of manufacturer-to-dealer purchase incentives. Those incentives translate into customer savings, anywhere from $1,000 to $8,000 — depending on the model.

For example, $1,000 will be cut from the price of a 2008 Nissan Sentra, while $8,000 is trimmed from a 2008 Nissan Armada.

Even with these incentives, some consumers are still heading south of the border as prices are still cheaper with the rebates applied, especially on models where the rebates are slim. Dealerships caution consumers who are heading south to look carefully at all the details when purchasing a US vehicle as vehicle models are not the same across the border.

Hyatt’s Itzcovitch, whose dealerships include Hyatt Auto Gallery (Mercedes-Benz and Smart), Hyatt Infiniti and Fish Creek Nissan, adds that it’s important to note that cars equipped for the Canadian market often don’t carry the same content as their U.S. equivalents. Mercedes-Benz vehicles sold in Canada all have factory undercoating applied, and he says U.S. cars don’t come so equipped.

“That could be a big issue if you’re planning on keeping the car long term,” Itzcovitch says. He adds items that come standard in a Canadian Mercedes-Benz, such as heated seats and bi-xenon headlights, are optional equipment in the U.S. Buyers looking to the U.S., Itzcovitch contends, “are not comparing the same apples,” and there can be thousands of dollars difference in equipment alone.

If these rebates are not enough to keep you from heading south to pick up your new vehicle, the automotive industry has one final trick up their sleeves to try to keep you from purchasing a cheaper vehicle from the United States. By utilizing a loophole, the manufacturers have essentially stopped the flow of brand new vehicles (2008 model year) into Canada with the help of RIV (Registrar of Imported Vehicles). In short, many 2008 US vehicles do not have the proper immobolizer required by the Canadian Government.

Happy Shopping!