Buying a car in the U.S., is it a good idea?

Not so long ago, when the Canadian dollar was virtually equivalent to the value of the U.S. dollar, some consumers were thinking about ​​buying their next vehicle south of the border in the United States. Today, however, both currencies are no longer equivalent and it has become a lot less interesting to buy an American car.

Nevertheless, for certain vehicles, especially luxury vehicles and pre-owned models, there are still some situations where it remains financially worthwhile to buy in the United States. But even if we can save money on the cost of the vehicle, is it really a good idea to buy in the land of Uncle Sam?

“There are several things to take into consideration when purchasing a car in the United States. The majority of these elements have nothing to do with the price of the vehicle, but with the real cost associated with the purchase south of the border. Once you have added all fees and included some inconveniences, it is quite possible that it is no longer a good deal to buy an American car,” says a sales representative at Mercedes-Benz Ottawa.

For starters, check whether you have the right to import the vehicle to Canada. To do this, one must go to the Registrar of Imported Vehicles’ website (www.rvi.ca) which indicates which models have the right to drive on Canadian roads.

Then, check with Transport Canada to see if there are changes and modifications that need to be made to the vehicle. Even if two models looks identical on paper, there may be differences that need to be corrected for the vehicle to be eligible in Canada.

Thereafter, we must ensure that the manufacturer’s warranty will be honored in Canada. Many manufacturers discourage buying across borders by making it harder to rely on the warranty. Sometimes, you have to pay for repairs and wait to be reimbursed.

And finally, remember that the resale value of a U.S. vehicle will be greatly reduced compared to a Canadian model, and that there are import costs and waiting times at the border.