"Drinking rum and Coca-Cola
Working for the Yankee dollar."
If you remember that 1945 hit by the
Andrews Sisters, you'll also remember a time when the U.S. dollar was the envy of the world, famed in both story and song. How times have changed. It's taken more than 30 years for Canadians to get back what our buck lost all those decades ago. But now, just when it seemed like we'd finally be able to enjoy cross border shopping at a discount, a new wrinkle has emerged.
Despite the new disparity in the dollar, cars in the U.S. are still significantly cheaper than they are in the Great White North. But an increasing number of Canadians are finding to their frustration that dealers down there won't sell to them if they're planning to bring the vehicles back here.
An example?
CityNews found a Jeep Liberty for the bargain price of $30,000 - a full ten grand less than what the same model sells for here. But when we tried to buy it, a dealer in Niagara Falls, New York told us it wasn't for sale to Canadians. Why? They've been ordered not to by the automakers, with the threat of losing their franchise.
The unfair nature of it all has led one Canadian couple to file a class action lawsuit in the U.S. against car companies that turn Canuck business away. Rhonda Chancey and Allan Coombs accuse General Motors, Ford, Chrysler, Honda and Toyota of colluding to force those north of the border to pay a higher price. Their lawyer,
Stephanie Jazlowiecki of Topsham, Maine calls it a blatant form of discrimination based solely on a country of origin.
It's important to note that
class action lawsuits must first be certified by a judge and rarely get to trial. And nothing has yet been proven in court.
Still, this is the U.S., where if there's money to be made, someone will find a way to make it. And some dealers are discovering methods to bend the rules.
"You need an address and insurance in the United States. I lose my franchise if they found out," one American dealer complains on a hidden camera. "The only way I can sell you one is if you had a U.S. address that we could register it in the United States. Then what you do with it after that, that's your business."
Their suggestion: use the address of a friend or a relative down south and drive it off the lot, even though that violates the agreements they're under. Just don't tell anyone or you could both lose. "They're cancelling dealers all over the country for it," he admits.
Another possible bypass: buy it slightly used. Then there's no problem getting your name on the sales slip.
A third solution to this problem will cost you a lot more time and a lot more gas. The prohibitions seem to be aimed mostly at dealers near the border and in the northern parts of the U.S., which Canadians can reach in a day trip. Head down south to places like Florida and they'll be happy to take your money, no questions asked. Especially now that it's worth so much more.
But be aware you still may run into warranty issues that could affect how much you'll have to shell out if something goes wrong with it over here.
If you are planning to take your chances buying a new car in the U.S. - and you can find someone who'll sell it to you - go with the knowledge you could still wind up in trouble on this side of the border, because not everything they sell there is allowed back home. Now can you be sure?
Check here to find out which cars can be imported and which can't.
And then
look here to see all the red tape you have to go through to ensure you make it all legal.
Related stories:
Buying online may be your best option
Can you still get good value by staying in Canada?
Cdn. shoppers rejoice as buck hits $1.04 U.S.