296 Values and Used Market

So if you buy a canadian car and save 10% you aren't gaining on the back end but you aren't losing. There's no arbitrage here but except to sell for 10% less than market on the back end whatever market is?

@Thecadster

 

I think there is a stigma attached to a Canadian car and having to be imported. It’s not a fair stigma but one that’s out there. For whatever reason a Canadian car will sell lower than the identical US car. They may be the exact same car, with no differences but the average, uninformed buyer will not pay the same.

Just look at some BAT auctions and some Canadian cars have problems selling and a lot of the comments are “if only if wasn’t a Canadian car”. Silly but it is what it is. With that being said, I never buy a car with the thoughts of resale. I buy to enjoy and don’t worry about how much I’ll lose when I sell it.

 

Agree I'm not concerned about resale. I know alot of those "to bad it's in Canada" comments are due to the +2.5% Canadian import duty and the extra cost of transport. My Viper was bought slightly cheaper than one in the US but I had to pay the extra transport and fees.

 

Any ‘import’ is worth less

 

Like anything else, if you buy it cheap enough, it won’t matter in the end. I suppose the same can be said for salvage title or TMU vehicles. The problem is the part about buying them cheap enough. That almost never happens. As is often the case with these types of cars, it’s super easy to step over dollars to pick up dimes.

 

I love the discussion but no one has given any reason to why a car bought from Toronto, then driven 100 miles to Buffalo is worth less than the same exact car bought in Buffalo and driven 150 miles to Cleveland . A damaged car, a car with a replacement engine, yes but why "blame Canada" (they should write a song about that).

 

Good luck there.
I’m still waiting for Canada to apologize for Bryan Adams…

 

US cars pull less in Canada. My Urus is an original US car and was 10 percent under market at least.

For here you cannot CPO a US car in Canada.

 

I guess that’s the point, there really isn’t a reason. Another similarly strange phenomenon is mileage sensitivity. Is there really a material difference between 100 miles and 1,000 miles? No…but that delta impacts the value differential.

 

Why can't you just buy it in Canada and drive it home to the US? It would have a temp plate from the dealer, wouldn't it?
Would they stop you crossing the border? What if they didn't?
Couldn't you just go register it when you get home at your local DMV? You'd have the bill of sale if that's the issue?
What prevents this from happening?

 

Compliance issues ?

 

Right, that's why I'm asking. Maybe compliance, yes, but compliance with what?
I'm sure my local DMV would love to get those tax $$ here in the US..

 

You can, but it's a pain in the a$$.

https://breezecustoms.com/blog/importing-vehicles-into-the-united-states/importing-a-car-from-canada-to-the-us/

 

It isn't easy to go US to CAN either unfortunately. Everyone has to take their slice.

 

That's for sure!

 

Correct, I have purchased a car from Canada before, you can't just drive it across and be able to register it localy without proper documents (Canada wants its drip before they release it) Once that is paid and you have the right papers, there was no additional cost or issue getting it titled. In this purchase the dealer is taking care of all the paperwork, Canadian dues, and transport so I did not have to worry about it and my price paid for the car had that all rolled in, so no this was not complicated.

 

We’re gonna need some pictures of this beauty ……

 

I see these newish ads here on Fchat, images of cars for sale between the posts, and start to click thru until I see Canada location and I pass. No real reason except history has shown lower resale price and demand, so why compromise when there are plenty USA market options. Rationale or not, is what it is.

 

Does the warranty transfer?

 

Yes. The dealer has to get Ferrari approval to bring back into the US. Like I mentioned all Ferraris arrive in Canada as US spec, and then minor conversions done at the dealer to make Canadian compliant.

 

All this discussion of Canadian prices and not a mention of the luxury tax that applies? Any local purchase has to add that on top, if it is exported it does not apply. The Luxury tax is about ...... 10%.

 

You can’t easily register in California for example. That’s a huge market. I track on BaT and Canadian cars always go for less. I believe the cars are identical, but history and grey market registration overhead concerns always cause some hesitation. I think you more than got a good deal on it to make up for any future gap if any so I wouldn’t worry.


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Here’s a good recent data point on the real life “Canadian Penalty”. This car should have gone for much more. It’s a $390-410 car were it not Canadian.

https://bringatrailer.com/listing/2018-porsche-911-gt2-rs-47/

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does anyone have any domestic examples or are we all sitting on the sidelines? I've been watching for months now and it seems the US economy is still going...while not quickly and who knows at what prices, the GTB prices are still being listed at around MSRP or over. Car listings are changing, the less desirable builds sitting around or over priced ones but others are moving .

through this thread I don't know if anyone actually has a real data point for a US car?

 

Dealer offering used GTB’s at to slightly below msrp.