Lower U.S. car prices steer shoppers across border

A growing number of thrifty Canadians are crossing the border for new cars and trucks as the dollar continues to rise in value.

Consumers, like Winnipegger Kevin Partridge, say the trip is worth the effort, even after factoring in import taxes, duty and the PST. Partridge purchased his 2006 Toyota 4-Runner on holiday in Dallas.

"We saved ourselves close to $10,000 — worth the trip," he said. "We're very happy with the vehicle and our experience has been good."

U.S. auto sales to Canadians have climbed significantly as the dollar has gained in strength, with sales last year exceeding 65,000 — a 50-per-cent increase over the previous year, according to the Registrar of Imported Vehicles operating under Transport Canada.

'As a consumer, someone looking for a certain vehicle, I can save thousands buying exactly the same thing in the U.S.' —Andrew Turner, consumer

George Iny, president of the consumer advocacy group Automobile Protection Association in Montreal, said the auto industry failed to change their prices as the Canadian dollar rose.

"Well, the industry just simply didn't adjust," Iny said. "They were just caught looking the other way."

Some carmakers are saying warranties may not be valid if the car leaves the U.S., although Toyota has confirmed it will honor the guarantee. Meanwhile, other companies are trying to deter American dealers from selling to Canadians, he said.

"You know, it is a little bit ironic that people in the industry beat their chest to promote free trade and are now engaged in certain forms of trade restrictions," Iny said.

"There are dealers in the border states in the U.S. who have been told that their franchises might be jeopardized if they were repeatedly caught exporting into Canada."

Consumer Andrew Turner of Winnipegsaid he's conflicted about the prospect of crossing the border to buy a new truck

"I'd much prefer to buy a vehicle here in Canada and stimulate the local economy," he said.

But, Turner noted that he estimates a cross-border shopping trip could save him about $6,000 on a new truck.

"As a consumer, someone looking for a certain vehicle, I can save thousands buying exactly the same thing in the U.S.," he said.