So you’ve run the history report and discovered you car was a U.S. vehicle. Let’s take a look at a few of the reasons a car would be brought up from the United States. Obviously the car is being brought to Canada because there is some type of financial incentive to do so or because the model was not available here. When the Canadian dollar spiked at the rates it did last year you could go into the States and purchase brand new cars for a cheaper sticker price than they were offered here in the Canadian market. Financial benefits depending on the vehicle could be in upwards of $10,000; well worth the while of processing the paperwork and having the vehicle converted to Canadian Road Standards.
If the vehicle you’ve pulled the report on was brought in for this reason alone, the only negative effects it holds to you would be that it’s resale value will be lower than its’ Canadian counterpart and you will want to confirm that the specific manufacturer does allow it’s U.S. warranty to transfer over. Some manufacturers will not allow their warranty to transfer over as they use this as a deterrent in hopes that their vehicles will remain in the market they were produced for. You definitely want to confirm the warranty left on your vehicle via the service department at the dealer. You also want to know if you are guaranteeing the “end value” or “residual” of your vehicle at the end of the lease term. If it is a “closed ended” lease of which most manufacturers programs provide you will not have to worry about the resale value unless you intend to purchase it.
The main reason a U.S. vehicle will not hold as much value as its’ Canadian counterpart is for the unethical reasons for it coming north of the border. Some sellers may use the transfer of documents and paper trail to try and “lose” damaging history about the vehicle to sell it at a premium here. For these reasons alone it makes the public and even dealers skeptical about ALL vehicles previously registered in other jurisdictions. The vehicle history report is designed to try and “discover” any of these reasons and protect you as a buyer. Some vehicles may have been involved in major accidents; quite possibly they were written off or even branded. Of course the big story that was very public recently was the fact that some “Hurricane Katrina” vehicles had been brought into our market. The key is to just be “aware” of the different reasons a U.S. vehicle may have been brought to Canada.
Performing a Vehicle History report and having a mechanics inspection will give you the peace of mind that you are purchasing a “reputable” vehicle. You will most definitely save yourself some money by purchasing or assuming lease of these vehicle; you just have know what your risks could be and how to eliminate them.
Thank you for reading this second segment of my Leasebusters Lease-blog. We at Leasebusters encourage you to make your comments and we will publish your thoughts and continue these informative segments based on your participation and encouragement.
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