Canadian? Don't think about buying a car in the U.S.

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Lifer
Jan 7, 2002
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BANGOR, Maine -- A Canadian couple who say they were turned down dozens of times when they tried to buy a new car in the United States are challenging what they regard as illegal discrimination.

Rhonda Chancey and Allan Coombs, a married couple from Paradise, Newfoundland, claim that more than 80 New England dealerships, including 61 in Maine, refused their business.

Chancey and Coombs filed a discrimination complaint with the Maine Human Rights Commission and plan to sue car companies. Similar complaints are planned in New Hampshire and Massachusetts, according to the couple's lawyer, Stephanie Jazlowiecki of Topsham.


Jazlowiecki said General Motors Corp., Ford Motor Co. and Chrysler were seeking to maximize profits by not allowing Canadians to take advantage of their strong dollar and buy new cars in the U.S., where prices are much lower.


"The dealerships' uniform denial of sales of new vehicles to Canadian citizens is a blatant pattern and practice of nation of origin discrimination," Jazlowiecki told the Bangor Daily News.


"Individual dealerships claim they are not allowed or that it is illegal to sell to Canadians. But this would appear to be a patent violation of state and federal anti-discrimination laws, as well as federal anti-competition statutes," she said.


Automakers impose the same rule on Canadian dealerships, barring U.S. residents from buying vehicles when the dollar is particularly strong, Jazlowiecki said.


Chancey and Coombs visited most of the dealerships and e-mailed some of them in the last two months, Jazlowiecki said.


In many cases, sales staff only became aware of the manufacturer's rule against selling to Canadians when they tried to go forward with a transaction, the lawyer said. She said dealers were permitted to sell the couple a used vehicle.


Savings can be significant. A $40,000 Cadillac Escalade in the U.S. now fetches about $80,000 in Canada, Jazlowiecki said.
 

StageLeft

No Lifer
Sep 29, 2000
70,150
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Something wrong is afoot here. Besides the fact this couple should be sent for evaluation, given how many scores of places they tried to buy cars from, MANY Canadians regularly buy cars in the US. We are not getting the whole story. Chances are they were trying to borrow cash (afterall, nobody in Newfoundland has money anyway) and had a problem with the credit issue or transference of warranty or something. If you show up with cash in hand nobody can turn you away.
 

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Lifer
Jan 7, 2002
12,755
3
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Originally posted by: Skoorb
Something wrong is afoot here. Besides the fact this couple should be sent for evaluation, given how many scores of places they tried to buy cars from, MANY Canadians regularly buy cars in the US. We are not getting the whole story. Chances are they were trying to borrow cash (afterall, nobody in Newfoundland has money anyway) and had a problem with the credit issue or transference of warranty or something. If you show up with cash in hand nobody can turn you away.

Skoorb, I was hoping you'd chime in! :) I'd like to see where this suit ends up. I knew of Canadians coming over to buy cheap gas, with their strong dollar, perhaps it is even more pronounced now?
 

stephenw22

Member
Dec 16, 2004
111
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This is 100% real. It's all over the news up here. Dealerships in the US states that border Canada have been told to not sell new cars to Canadians, or they risk losing their dealership. Not only for cars and trucks, but also snowmobiles and camping trailers. I worked with someone several years ago that used to drive to the US, buy a camping trailer, then use it for a couple weeks of vacation. He'd drive it home and sell it, and it would pay for most of the vacation. This was when CAD$1.00=USD$0.70.

That said, I've been told that there are ways around this - in a tax-friendly state, a 3rd party from the US could buy the car for the Canadian couple and then resell a 'used car' to them. Also, that southern US states do not have the same regulation. I'd imagine that Florida or Arizona (where many Canadian retirees spend their winters) were already selling lots of cars to Canadian citizens. The cost of shipping a car to the border is pretty low.

The savings are amazing though - I was looking at a Prius not too long ago, and I would have saved $6,000 or more, even after all the shipping and inspection fees.
 

gnumantsc

Senior member
Aug 5, 2003
414
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I know for higher priced cars it is worth it as it was in local newspaper where they were giving examples of luxury cars priced in Canada and the US. They concluded even if it cost of transferring the car from the US to Canada would cost $5000 it is still worth it, but they also noted that inexpensive cars were not worth the hassle for.

Funny how the majority of cars are assembled in Canada and yet we get penalized but when the US came here on the cheap dollar we didn't have these restrictions.