Canadians Buying More Cars Across The Border

Anthony Fontanelle
November 13, 2007

Earlier this year, it was reported that Canadian auto buyers prefer purchasing new vehicles from the United States instead of buying them in Canada. To combat this trend, automakers like Ford and Chrysler have offered large discounts. But the number of vehicles being bought by Canadians across the borders still continues to rise.

Last month, 24,873 vehicles were bought by Canadians in the United States and were brought over across the border. With the Canadian dollar reaching its highest level, the trend is expected to continue. The number of vehicles bought by Canadians in the United States increased by 68 percent last month compared to September.

Last year, the number of vehicles going across the border to Canada bought in the United States numbered more than 100,000 - the first time that it happened in history. This year, from January until October, there have already been more than 136,000 units of vehicles bought by Canadians in the United States. It is expected that by the end of the year, that number will rise to more than 164,000 units.

Brian Osler, the president of North American Automobile Trade Association, has this to say: "I suspect there is an added psychological boost in having a dollar that trades at par. After rounding or approximating numbers, consumers probably feel a little more confident in comparing prices."

But while the number of Canadians buying vehicles in the United States is increasing, the majority of Canadian auto buyers are still buying vehicles and auto parts like the control arm Canada in the local market. Buying from United States dealership entails a lot of hassle compared to buying vehicles locally.

But luxury car buyers are the ones benefiting from buying vehicles in the United States. By buying sports cars in the United States, Canadian consumers can save as much as $14,000. That is a really huge discount. As a result, Porsche is one of the most enraged automakers at the ongoing trend. As a countermeasure, they have decreased prices of their models in Canada by an average of eight percent.

Porsche is not the only automaker offering discounts to Canadian consumers. Chrysler, BMW, and Mercedes-Benz also offer discounts on their vehicles. Chris Travell, vice-president of Maritz Automotive Research had this to say: "This is really getting on the radar screen for all the manufacturers. It's not just a flash in the pan. The product planners and so on are looking at their cost structure to see how they're going to respond."

Source:  Amazines.com