Comparison between U.S and Canada Vehicle Prices

It is a general understanding that Canadians pay more money on car purchase than their southern neighbours. But is that really true, partially true or downright wrong? Let’s find out in this guide:

Is There a Price Difference Between U.S and Canada Cars?

Yes, there’s a very clear price different between the Canadian and American automobile markets, well at least on the surface (more on this below). In general, you’d notice that car prices are higher in Canada as compared to the U.S and that’s what makes purchasing a car from the U.S so lucrative to Canucks.

This is the reason that in the past few years, we’ve seen a record number of vehicle transports and imports in Canada from the U.S. Even though the exchange rate between the USD and CAD still favours the USD, increasing car costs for them in the U.S, there are many reasons Canucks still buy cars from their southern neighbour.

How Much Price Difference Can Be Expected in U.S vs Canada Vehicles?

This is something that you can quickly find out by calling the auto dealers of both countries and asking for quotes. However, we can provide you with a general idea about what to expect when shopping for cars in both markets.

According to a report, on average, there’s a 20% difference between the prices of vehicles in Canada and United States, with the latter being on the lower side. So let’s say you like a car that costs $30,000 in Canada then you may find it for $24,000 in the U.S.

One of the reasons for this price difference is that most car manufacturers are in the U.S so locals obviously benefit from this in the form of low pricing.

However, there are some factors you need to take into account and that are the fees, duties and taxes. Here are some of the costs:

  • Import duty can be 6.1% on the declared value
  • GST can be 5%
  • PST depends on your province
  • Air Conditioner tax is $100
  • RIV fee is $295+GST or $295+GST+QST (For Quebec)
  • Excess Weight Tax if car weight exceeds 2,007kg or 4,425lbs
  • Fuel inefficiency tax if vehicle uses 13 or more litres for every 100km (Tax ranges from $1000 to $4000 depending on litres/1000km)
  • Vehicle emission and safety inspection fee (depends on province)
  • Cost to ship a car from U.S to Canada (depends on total distance)
  • Airplane travel cost to Canada (if you don’t hire a car transport company)

So Is it Worth Getting Cars From Canada & Importing Them Here?

Well that’s a tricky question because depending on what you have left after accounting for all the fees mentioned above will decide whether or not you should get a car from the U.S. However, for most vehicles, especially those with a higher than $30,000 price tag will save you a couple of thousand bucks after all those fees and expenses mentioned above.

Furthermore, if your car comes under NAFTA (The North American Free Trade Agreement) then it won’t be charged the duty fee of 6.1% and will get further tax and fee relaxation. This can further reduce the cost of the car, providing you with excellent value for money.

Parting Words:

You can go to the U.S by airplane, buy the car and then drive it to Canada while dealing with all the hassles of customs clearance and paperwork. Or, you can hire a Canadian car transport company to take care of everything for you and have the car parked into your driveway in a few days.