Archive for the ‘Car News’ Category

Downward Trend Of Used Car Sales In Canada To Continue Until 2009

Tuesday, May 6th, 2008

Toronto, Canada (AHN) – Prices of used cars across North America will continue to decelerate until early 2009, according to the latest Global Auto report issued by Scotia Economics Tuesday.

Carlos Gomes, senior economist and auto industry specialist of Scotiabank, in a press statement, explained, “Used car prices have been declining across North America since late 2006, but the weakness accelerated in early 2008 alongside deteriorating economic conditions – especially in the United States… We expect used car prices to continue to soften through early 2009, pressured by rising unemployment in both the United States and Canada.”

According to the Scotiabank Used Car Price Index, the downward trend started in Canada by mid-2006 resulting from the rise in import of used cars from the U.S. sold at prices lower than local secondhand autos. The economic slump in the U.S. has prompted the sale of cars by Americans, affecting the Canadian secondhand car market, especially in areas near the Canadian-U.S. border.

Read the Full Article » 

Porsche border caper nets Lockport man hefty fine

Tuesday, May 6th, 2008

A Lockport man’s Porsche Carrera may be a fast car — but it wasn’t fast enough to help its owner avoid a stiff fine for trying to evade import duty and taxes when importing it to Canada from the United States.

Read the full story (Winnipeg Free Press) »

Government of Canada to harmonize bumper standard

Thursday, April 3rd, 2008

OTTAWA, April 2 /CNW Telbec/ – The Government of Canada has proposed an amendment to the Motor Vehicle Safety Regulations (MVSR) to harmonize the Canadian bumper standard for passenger cars with similar safety standards fromthe United States and Europe.

The proposed amendment would result in one set of globally regulated test speed requirements for the design of bumpers. This would simplify the bumper design for vehicles destined for the North American and European markets.

“This proposed amendment would offer more choice to Canadians who wish to import vehicles,” said the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities. “At the same time, it would help to maintain the safety of Canadian roads.” …

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Reader floored by price gap for Honda vehicles

Tuesday, April 1st, 2008

Len Dezoete was being driven to distraction.

He couldn’t understand why Honda Canada appeared to be charging thousands of dollars more for a Civic ELX than consumers pay for the same car when purchased in the U.S.

He found it more galling that Honda Canada and its dealers also appear to charge more for freight and delivery, especially since the Civic he wished to buy is made right here in Ontario.

But things aren’t as bad as they look.

“I have compared two vehicles with all the same features right off the official websites of Honda Canada and American Honda Motor Co.,” Dezoete told us. “Brace yourself! I certainly cannot understand the freight charges. And the MSRP (Manufacturer’s Suggested Retail Price) blows me away, considering our dollar has been at par for a long time now.”

He told us he priced a Civic EXL model with leather, automatic transmission, power windows, locks and mirrors, aluminum wheels, sunroof and 160-watt stereo system.

If purchased here in Ontario, the car has an MSRP of $24,680, with a freight and delivery charge of $1,295, he said. Using Honda America’s own website, Dezoete said the same car can be had for $20,710 in the states, with a delivery fee of $635. That’s a combined difference of $4,630.

Read the full Article by from  The Hamilton Spectator »

Car dealer launches lawsuit claiming unfair fees on vehicles purchased in the U.S.

Wednesday, March 26th, 2008

VANCOUVER – A Vancouver car importer has filed a lawsuit against several major automakers, claiming they artificially inflate prices for Canadians wanting to buy vehicles in the U.S.

Westport Motor Cars Ltd. says manufacturers clearly want to discourage cross-border car shopping by charging “unreasonable fees” for modifications required to make the vehicles comply with Canadian standards.

Westport owner Todd MacDonald said BMW, for example, has added new measures required before its U.S.-sourced cars can be driven in Canada – including changing speedometers to highlight kilometres per hour instead of miles per hour and changing modules to read Celsius instead of Fahrenheit.

He said the time-delaying modifications can cost up to $5,000.

“These measures are a crock,” MacDonald said in an interview. “I’ve finally had enough and that’s why this [lawsuit] is happening.”

Read the Full Article BY BRUCE CONSTANTINEAU, Vancouver Sun »

Car makers put brakes on pricing parity

Sunday, March 16th, 2008

Dealers slash stickers but costs still 20-30% higher than US

“It’s been a few months since the loonie took its wild flight to US dollar parity but it is still hovering at that mark. While Canadians may feel entitled to cash in on the strength of their currency, price adjustments here have been decidedly underwhelming.

The auto industry, in particular, has been slow to give the Canuck buck its due. And when Canadians started pouring across the border in search of cheap wheels, car manufacturers responded aggressively. They instructed stateside dealers to turn away bargain-hungry Canadians and threatened not to honour warrantees on cars purchased in the US. ”

Read Full Article by Anwar Ali at NRM Personal Finance

Canadians import record number of new and used vehicles as loonie soars

Monday, March 3rd, 2008

OTTAWA – A record number of Canadians imported vehicles from the United States this year, said a report released Monday as economists warned that an automotive shopping spree south of the border could drive down selling prices in Canada.

Scotia Economics (TSX:BNS), citing data from the Registrar of Imported Vehicles, said Canadians imported a record 137,000 new and used vehicles from the U.S. through October, after the loonie overtook the slumping greenback.

Scotiabank auto industry specialist Carlos Gomes said Canadians imported 24,873 vehicles in October alone – twice as many as in October 2006 and a 68 per cent jump over the 14,832 vehicles imported this September.

Read the Full Story on AOL Money

Ottawa sued over car import rules

Thursday, February 28th, 2008

Two vehicle leasing companies have launched a class-action lawsuit on cross-border vehicle shopping with a new twist, alleging Transport Canada and the Canada Border Services Agency were participants in a conspiracy to keep vehicle prices high.

The two arms of the government have been named along with BMW Canada Inc., Mercedes-Benz Canada Inc. and Mercedes-Benz USA LLC in a lawsuit that alleges actions they required of people or companies trying to import U.S. vehicles into Canada reduced competition and enabled prices of vehicles sold here to be 20 per cent to 35 per cent higher than similar U.S. models.

Read full article at ReportOnBusiness.com

2008 Tax Relief Means Cheaper Vehicle Imports for Canadians

Tuesday, January 1st, 2008

Effective January 1st 2008, the Canadian GST rate has dropped from 6% down to 5%. That means when you import a car into Canada, you will be paying less taxes and thus, the cost to import a vehicle to Canada just got cheaper. The amount your GST will be calculated on is, as always, based on the sale price of the book value of the vehicle, typically whichever is the bigger number. And, for non-North American vehicles, importers will still be paying the standard 6.1% duty.

For more information on the Tax change, see the Tax Relief information page on the Department of Finance of Canada’s website

Importation of U.S. Vehicles by Canadians: Government of Canada Announces Amendment to Clarify and Ease Importation

Wednesday, December 19th, 2007

OTTAWA — The Government of Canada has amended the Motor Vehicle Safety Regulations to make it easier for Canadians to import vehicles from the United States built on or after September 1, 2007, that are already equipped with an electronic immobilization system or that can be fitted with one.

Read full article at Transport Canada