7 Reasons to Buy a Canadian Import Auto in 2021
Are you looking for a new car in 2021? If so, you might want to consider buying a Canadian import auto. Here are seven reasons why:
1. You can save money on taxes and fees.
Depending on where you live in the US, you might be able to save money on sales tax, registration fees, and import duties by buying a car from Canada. For example, if you live in a state that charges 10% sales tax on cars, you could save $3,000 on a $30,000 car by importing it from Canada, where the sales tax is only 5%. You might also pay less for import duties, since the US and Canada have a free trade agreement that eliminates most tariffs on vehicles.
2. You can get more options and features.
Canadian cars often have more options and features than their US counterparts, especially when it comes to safety and comfort. For example, Canadian cars usually have daytime running lights, heated seats, heated mirrors, and rearview cameras as standard equipment, while US cars might charge extra for these features or not offer them at all. You might also find models and trim levels that are not available in the US market, such as diesel engines, manual transmissions, or hatchbacks.
3. You can enjoy better quality and reliability.
Canadian cars are known for their high quality and reliability, thanks to strict regulations and standards that ensure they meet or exceed the requirements of both the US and Canada. Canadian cars also tend to have lower mileage and less wear and tear than US cars, since Canadians drive less on average and have harsher weather conditions that discourage driving. Additionally, Canadian cars are subject to regular inspections and maintenance, which means they are less likely to have hidden problems or defects.
4. You can benefit from a favorable exchange rate.
The US dollar is currently stronger than the Canadian dollar, which means you can get more value for your money when buying a car from Canada. For example, as of August 2021, one US dollar is worth about 1.26 Canadian dollars, which means you can buy a $30,000 car in Canada for about $23,800 in US dollars. That’s a savings of over $6,000!
5. You can access a larger and more diverse market.
Canada has a larger and more diverse car market than the US, with more brands and models to choose from. For example, you can find cars from European and Asian manufacturers that are not sold in the US, such as Peugeot, Renault, Citroen, Skoda, Suzuki, Daihatsu, and Mitsubishi. You can also find rare and exotic cars that are hard to find in the US, such as Aston Martin, Bentley, Ferrari, Lamborghini, Maserati, Porsche, Rolls-Royce, and Bugatti.
6. You can avoid dealer markups and scams.
Buying a car from a dealer in the US can be a stressful and frustrating experience, especially if you encounter dishonest or pushy salespeople who try to charge you extra fees or sell you unnecessary products or services. Buying a car from Canada can help you avoid these hassles and scams, since you can deal directly with the seller or use a reputable broker or agent who can handle the paperwork and logistics for you.
7. You can have fun and adventure.
Buying a car from Canada can be a fun and adventurous way to get a new car in 2021. You can explore different cities and regions in Canada, meet new people and cultures, and enjoy the scenic drives and landscapes along the way. You can also make it a road trip with your family or friends, or combine it with a vacation or business trip.
If you are interested in buying a Canadian import auto in 2021, here are some steps you need to follow:
- Check the admissibility of the car on the Registrar of Imported Vehicles website: https://www.riv.ca/
- Contact the seller or broker and negotiate the price and terms of the sale
- Arrange for transportation and insurance of the car from Canada to the US
- Prepare the required documents for customs clearance on both sides of the border
- Pay the applicable taxes, fees, and duties
- Register and title the car in your state
The Canadian Import Auto Industry: Trends and Outlook
The automotive industry is one of the most important sectors of the Canadian economy, contributing over 100 billion Canadian dollars to the gross domestic product in 2019. Canada is the second-largest automotive market in North America, with over 1.7 million motor vehicle sales in 2021. However, the industry also relies heavily on imports of vehicles and parts from other countries, especially the United States, Japan, Mexico, and Germany.
According to Statistics Canada, the value of motor vehicle and parts imports in Canada reached around 53 billion U.S. dollars in 2020, a decrease of 18 percent from the previous year. This was mainly due to the impact of the COVID-19 pandemic, which disrupted the global supply chains and reduced the consumer demand for new vehicles. However, imports are expected to rebound in 2021, reaching almost 70 billion U.S. dollars, as the industry recovers from the crisis and adapts to the new market conditions.
One of the main drivers of the import auto industry in Canada is the consumer preference for light-duty vehicles, such as passenger cars, sport utility vehicles (SUVs), and pickup trucks. These vehicles accounted for 90 percent of all motor vehicle registrations in Canada in 2021, with passenger cars being the most common type. However, registrations of multi-purpose vehicles, such as SUVs and minivans, have experienced the most growth over the last five years, reflecting the changing tastes and needs of Canadian drivers.
Another factor that influences the import auto industry in Canada is the environmental awareness and regulation. Canada has committed to reducing its greenhouse gas emissions by 30 percent below 2005 levels by 2030, and has implemented various policies and incentives to promote the adoption of low-emission vehicles, such as electric vehicles (EVs) and hybrid electric vehicles (HEVs). According to Transport Canada, there were over 550,000 EVs and HEVs registered in Canada in 2021, representing 2.3 percent of all light-duty vehicles. The majority of these vehicles are imported from other countries, such as China, South Korea, and Norway.
The import auto industry in Canada faces both opportunities and challenges in the coming years. On one hand, the industry can benefit from the growing demand for new and innovative vehicles that offer better performance, safety, comfort, and efficiency. On the other hand, the industry has to cope with the increasing competition from domestic manufacturers, as well as the potential trade barriers and tariffs that may arise from geopolitical tensions or trade disputes. The industry also has to deal with the uncertainty and volatility caused by the ongoing COVID-19 pandemic and its variants.
To succeed in this dynamic and complex market, import auto companies need to adopt a strategic approach that leverages their strengths and addresses their weaknesses. They need to understand the preferences and expectations of Canadian consumers, as well as the regulatory and environmental requirements of the Canadian government. They also need to invest in research and development, innovation, and quality improvement, as well as establish strong partnerships with local suppliers, distributors, dealers, and customers.
References:
https://www.cbc.ca/news/politics/net-zero-emissions-1.5807877
https://www.bbc.com/news/world-us-canada-55006702
https://www.statcan.gc.ca/en/topics-start/automotive
https://www.statista.com/topics/7792/automotive-industry-in-canada/
https://www.statista.com/statistics/1229138/canadian-motor-vehicle-imports/
https://www.dirtlegal.com/blog/6-steps-to-import-a-vehicle-from-canada-to-the-us-by-yourself
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