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-   -   Canadians!!! Wouldn't you buy E70s in the US? (https://xoutpost.com/bmw-sav-forums/x5-e70-forum/34017-canadians-wouldnt-you-buy-e70s-us.html)

briandwlee 07-09-2007 12:35 AM

Canadians!!! Wouldn't you buy E70s in the US?
 
Hi.

I am planning to buy an E70 in the US and bring it to Canada. Since all E70s are made in the US, we don't pay duty on them and we just pay GST !!! (We anyway pay GST on card we buy here) Thanks to the state of our Canadian dollars, my calculation indicates we coud save easy $10,000 CDN for a good-equipped 3.0.

Of course, we will experience some hassle; three-day window period to report at a border, inspection, km vs. mile, daytime running lights, and so on.... But... it's $10,000 !!!

I personally think BMW Canada is not treating us fairly even for the German-made BMWs. US impose duty, and we impose duty. Before sales tax, all the cost involved should be pretty much equal... But, why do we always pay more???

X5FX 07-09-2007 12:52 AM

oops...how are you going to license it?

JCL 07-09-2007 02:24 AM

Realize that the US model is sold and warranted by BMWNA.
The Canadian model is sold and warranted by BMW of Canada.
The warranties are not transferable. If you want warranty service on your US model you may need to return to the US to get it. So much for free service loaner cars.

Traditional reasons for the Canadian price premium are the smaller Canadian market, higher cost base, and resulting higher distribution costs. It is hard (if not impossible) to justify anything approaching $10k, but this isn't just a BMW issue, it also applies to TVs, digital cameras, and so on.

I think it is more an issue of BMW of Canada charging what the market will bear. Is there a waiting list for new in-demand models, or are they sitting on dealer lots? At least you are in Alberta, where the economy is firing on all cylinders (or on all oil wells). ;)

briandwlee 07-09-2007 03:52 AM

I've already checked the warranty policy of BMW NA and BMW Canada, and, as far as I know, BMW Canada is a subsidiary of BMW NA, and warranty is valid in both countries. If you drive your BMW to the US crossing the border and you have problems with you BMWs, you get warranty service in any dealer in the US. It applies to the US BMWs travelling in Canada, too. They get warranty service here. Only thing we/they cannot get in either country is free schedulled maintenance service. If we bring US BMW to Canada, that free schedulled maintenance service is void, but factory warranty is still valid.

In regards to licencing and getting a plate here, it's not a problem at all. If you well prepare in advance, it's darn easy. Check out the web site, www.riv.ca. It clearly lists all the vehicles that can be imported to Canada and what are needed to be modified to meet the Canadian regulation. Basically, for latest vehicles, day time running lights and car-seat holder or something like that are major parts. Day time running lights on BMW can be turned on by simple coding at dealer. No modification is necessary for E70.

I understand cost in Canada is bit higher than that in the US, but the difference has to be understandable.

Let's do the math. For BMWs, US retail + 6.5% Canadian duty + apprx. $3K~$5K, depending on models, is Canadian retail. Keep in mind that the US retail already and also includes import duty in the US. Even if we add Canadian duty one more time, which is already double the duty, it's still apprx. $5K cheaper.

But, here's the thing... for US made BMWs such as X5 and Z4, we don't pay 6.5% duty. Canada, US and Mexico are under NAFTA roof. It's duty free. So the difference stretches to $10,000.

As far as I concern, BMW Canada is telling us "Hey... Buy it here, it's only a few thousands cheaper. You'll have to fly to the US and stay there for few days, and you'll lose the maintenance package." Dealers add some more... "If you buy US vehicle, used price will be lower. (Sometimes they tell a lie...) Warranty voids!!!" Well... Warranty is valid.

I want to support Canadian industries, too, but let's be realistic. As Canadian economy gets better like this, we, as general consumers, are entitled to enjoy the benefit, too, not just the huge companies.

Don't you think so?

MD11F 07-09-2007 10:35 AM

Buy it in Montana and don't even pay US Sales tax.

briandwlee 07-09-2007 10:44 AM

Well... For vehicles being exported, there is no sales tax anyway.

grover432 07-09-2007 01:53 PM

Quote:

Originally Posted by JCL
Realize that the US model is sold and warranted by BMWNA.
The Canadian model is sold and warranted by BMW of Canada.
The warranties are not transferable. If you want warranty service on your US model you may need to return to the US to get it. So much for free service loaner cars.

Traditional reasons for the Canadian price premium are the smaller Canadian market, higher cost base, and resulting higher distribution costs. It is hard (if not impossible) to justify anything approaching $10k, but this isn't just a BMW issue, it also applies to TVs, digital cameras, and so on.

I think it is more an issue of BMW of Canada charging what the market will bear. Is there a waiting list for new in-demand models, or are they sitting on dealer lots? At least you are in Alberta, where the economy is firing on all cylinders (or on all oil wells). ;)

Who told you that (warranties are not transferrable)? Maybe you are thinking about Daimler Chrysler?? Sounds like a sour dealer post. In fact I know many people who have bought used BMW's in the USA and have had no problem getting warranty. One friend took the step of getting a letter from BMW Canada before he imported a 6 month old 645 Convertible. Oh, you were talking about a new car? Well get the dealer to title the car (now it is used) then sell it again as a used car. US dealers have been doing this for years. It's how they sell a "new" M5 for more than "list" - when they were selling for more than msrp.

The importing process is quite simple, but the buyer should be aware of the costs to "Canadianize" the car. The "Registrar of Imported Vehicles" in Ottawa can help. I'd contact a good broker who is in the business of importing vehicles. They know the ropes. As far as insurance; if you are not too far from the market you are buying from, why not have the car shipped for $500? It will arrive at your door with all of the paperwork completed. You can get a 30 day sticker, get it inspected, get the mods done (if any are needed) and register/insure and then enjoy your new car.

What you won't get from BMW Canada is the free scheduled maintenance for 4 years. Not sure what the $$ vaue of that is.

PS For those people who think this is too much of a hassle, a recent article in THe Globe and Mail said US auto imports are up 50% compared to a year ago, due mainly to the value of the $CAD.

Don't let people like this poster scare you. If you save $10,000, you likely had to earn $20,000 to pay the $10,000 you would otherwise have to pay if you were buying locally. (assuming you are in the rediculous 50% tax bracket).

mmouse 07-09-2007 02:59 PM

The waranty is not fully transferable. The (Canadaian) warranty booklet states so. You would, however, get a 2 year factory waranty not 4 and it isn't free schedulled maintenance service.

grover432 07-09-2007 03:57 PM

Quote:

Originally Posted by mmouse
The waranty is not fully transferable. The (Canadaian) warranty booklet states so. You would, however, get a 2 year factory waranty not 4 and it isn't free schedulled maintenance service.

On a used vehicle?

mmouse 07-09-2007 04:57 PM

Quote:

Originally Posted by grover432
On a used vehicle?

No, on a new one imported from US.


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