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Old 09-26-2007, 01:30 PM   #1
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Auto Industry Class Action Suit

Here's news of a huge class action lawsuit that is being filed against the auto industry. Surprisingly enough, it's not being filed out of the US

http://www.canada.com/nationalpost/f...c2&k=57065&p=1

The major Canadian and U.S. auto manufacturers are about to be hit with a $2-billion class-action suit in Canada over their sales practices, which a law firm alleges artificially enhances the price of vehicles in Canada and dissuades consumers from crossing the border to take advantage of a stronger dollar to purchase or lease cheaper vehicles in the United States.

Toronto class-action law firm Juroviesky and Ricci is expected to file the suit on behalf of four Toronto residents who say they paid more for cars in Canada, after factoring in the exchange rate, than the comparable or identical cars cost in the United States. The suit covers consumers who bought cars between August, 2005, and August, 2007, a period when the Canadian dollar was rapidly appreciating. It also seeks $100-million in punitive damages.
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Old 09-26-2007, 02:14 PM   #2
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Kind of makes sense to me. Always wondered about that, assumed it was the different in money values.
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Old 09-26-2007, 02:26 PM   #3
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I always thought it was the part of the customs fee or something. dunno
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Old 09-26-2007, 02:30 PM   #4
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Didn't think about that....but, yeah.

Calgary.....you started this. And, I assume, because of your post regarding the Enclave, you have some idea regarding the duty and misc. expenses to get the car into Canada. Can you answer the additional costs questions????
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Old 09-26-2007, 02:49 PM   #5
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About time! If nothing else comes out of this lawsuit we might find out why a car built in Canada costs $ 1000.00 to 3000.00 more in Canada then if sold in the US. with the exchange rate factored in. For Example my HHR Premier Edition was CDN. MSRP of $31,000.00 and paid (financed) $29,000.00 and it was as you know made in Mexico, same car around $26,000 US????
Free Trade my butt.

Need Kingfrog to do my negotiating for me I guess.
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Old 09-26-2007, 02:53 PM   #6
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There shouldn't be any duty/custom: auto pack, free trade or whatever agreement currently holds. A small import fee maybe... a bit more transport, but even that doesn't hold the road when the car is built in Ontario.

My guess is that the prices were set some time ago, assuming a low CA $ and were never updated. And because they can get away with it.

In fact, quite a few canadians are now buying cars in the US and importing them. There are a few regulations to comply with, such as installing DRL if not standard and some paperwork involved, but in all I think that it can be done for about $25, plus a mechanical inspection/certification. You pay the GST & PST and you're all set.

Yves
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Old 09-26-2007, 02:58 PM   #7
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The costs of bringing a vehicle into Canada are not great.

Tax (Gov't Sales Tax) has to be paid on the purchase price (6%) and if you live in a province with Provincial Sales Tax that has to be paid.

There are potential inspection fees, registrar of imported vehicles fee (RIV) of $200, A/C excise tax ($100), there's a fee if the gross vehicle weight is over 4400 pounds and there is a duty of 6% (I think) if the vehicle is not made in Canada, US or Mexico. If the vehicle doesn't comply with Canadian standards you have to bring it up to standard with 45 days I think (this includes safety things, emissions, day-time running lights and such.)

On a vehicle like the Enclave (which I was looking at) it would be about $45000 (as priced on the Buick website) plus $2700 in tax, $300 for processing and A/C, and maybe a few other fees. With registration and transport I should be able to get it home for around $5000 or a total cost of about $50000. The same Enclave priced at GM Canada website is just over $60,000. So that's a savings of about $10,000.

All these numbers are just rough estimates, without going through the whole process it's tough to figure out actual costs and differences.
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Old 09-26-2007, 03:03 PM   #8
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Yves, you're right the cost is pretty low when you don't include the GST and transportation charges. There is a duty on non-north american made/assembled vehicles (volvo, BMW, MB all those Europe types.)

The biggest problem, as mentioned in the articles, that I have run into is that warranties will not be honoured in Canada. GM Canada will not honour a warranty on a brand new vehicle for the first 12000km and then it has to go into an inspection and review process at which point GM decides whether to honour the remaining warranty.

It seems as though this is being used as a major deterent for these types of deals. Also, I've been told that there have been some sort of negotiations at some point in the past where American dealers are forbidden to sell to Canadians (a sort of gentlemans agreement.)
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Old 10-24-2007, 07:29 PM   #9
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For anyone interested in more information on the class action suit or wanting to register, please visit:

http://www.jruslaw.com/classactions/carprice.shtml
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Old 10-25-2007, 06:55 AM   #10
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It's bad, but it could be worse. I went to French Polynesia about five years ago for a church trip. Our host family had imported a big customized Ford van from the US the last time he was over here. Paid a little under $30k for the van, and another equivalent of $70k in duties and taxes when he brought it into FP because of the draconian import duties that France has imposed on that country. However, if you buy a French brand like Peugeot, Renault, or Citroen, or if the vehicle was made in France or a French protectorate, no duty.
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