It's all about meeting Canadian government regulations. Here's the latest list of cars that can be imported into Canada, and any changes required to make them street legal.
http://www.tc.gc.ca/media/documents/roadsafety/vafus.pdf
Some of the differences between Canada and US car specifications include the passenger restraint system, side reflectors, electronic immobilization system, and daytime running lights. There's also a requirement that the vehicle not have any outstanding recalls, or that any recalls have been resolved on the vehicle to be imported.
If the price difference between a Canadian and USA model of the same car is less than $2,000, that difference should be more than enough to cover the "Canadianization" of the vehicle. But when the price difference is significantly more than $2,000, something fishy is going on here.
All cars manufactured in North America fall under the NAFTA trade agreement, with no duties to pay for either import or export. What you DO pay however is the Canadian equivalent of VAT (GST, QST, PST and HST depending on the province), the $100 air conditioner recovery fee if applicable, and a few administrative fees to legally export the vehicle from the United states and import the vehicle into Canada.
It does sound like a complicated process to save some money. But with some Canadian vehicles costing as much as 40% more than their US counterparts, the savings can be significant.
The flood of Canadians heading to the States to buy cars dirt cheap has created a bit of a backlash. Some manufacturers will now penalize US dealers who sell cars to Canadian with the intention of importing them into Canada.
Also, Canada and the US have the world's longest undefended border (8,891 kilometers or 5,525 miles long), the Canadian population lives no more than two hours away from the US border, and most of the border goes over land. So geographically, Canada and the USA are basically a single gigantic land mass. And yet, as soon as you cross that imaginary line, the price of everything jumps a few digits.
Very annoying.
http://www.tc.gc.ca/media/documents/roadsafety/vafus.pdf
Some of the differences between Canada and US car specifications include the passenger restraint system, side reflectors, electronic immobilization system, and daytime running lights. There's also a requirement that the vehicle not have any outstanding recalls, or that any recalls have been resolved on the vehicle to be imported.
If the price difference between a Canadian and USA model of the same car is less than $2,000, that difference should be more than enough to cover the "Canadianization" of the vehicle. But when the price difference is significantly more than $2,000, something fishy is going on here.
All cars manufactured in North America fall under the NAFTA trade agreement, with no duties to pay for either import or export. What you DO pay however is the Canadian equivalent of VAT (GST, QST, PST and HST depending on the province), the $100 air conditioner recovery fee if applicable, and a few administrative fees to legally export the vehicle from the United states and import the vehicle into Canada.
It does sound like a complicated process to save some money. But with some Canadian vehicles costing as much as 40% more than their US counterparts, the savings can be significant.
The flood of Canadians heading to the States to buy cars dirt cheap has created a bit of a backlash. Some manufacturers will now penalize US dealers who sell cars to Canadian with the intention of importing them into Canada.
Also, Canada and the US have the world's longest undefended border (8,891 kilometers or 5,525 miles long), the Canadian population lives no more than two hours away from the US border, and most of the border goes over land. So geographically, Canada and the USA are basically a single gigantic land mass. And yet, as soon as you cross that imaginary line, the price of everything jumps a few digits.
Very annoying.