Rising dollar driving U.S. import vehicle sales in Canada

A North American auto industry in turmoil has one segment doing well these days. Thanks to the fast-rising Canadian dollar, the Canadian market for vehicle imports has returned.

“We are already seeing a rebound now that the dollar has quickly jumped back over 90 cents,” says Mark Sandelin, Chief Executive Officer of Import Trader, a Canadian dealer that helps Canadian consumers and auto dealers import vehicles from the United States. “At 93 cents there are fantastic prices in the U.S.”

Last year, a record 239,929 vehicles were imported into Canada from the United States by consumers looking to save money, and dealers offering customers a better vehicle for the same price. The American import market in Canada slowed by the end of 2008 when the Canadian dollar fell well below the 90 cent mark. Only 18,794 vehicles were imported in the first quarter of 2009.

The volume of imports has jumped up again, with 61,618 vehicles imported in the first seven months of this year. The rise stems from the recent surge of the Canadian dollar and the economic uncertainty facing United States dealers and manufacturers. Canadian consumers and dealers are again looking south for bargains.

“Canadians know there is an alternative market for car shopping,” says Brian Osler, President and CEO of the North American Automobile Trade Association (NAATA), the Canadian-based association of dealers specializing in cross-border sales. “The exchange rate has a tremendous impact on prices and consumer savings.”

Some Canadians buy their American vehicles from local dealers who sell American imports. Other Canadians buy directly in the United States, usually from an American dealer. Consumers can do the paperwork on their own or with the help of a company that specializes in the vehicle importation process.

“Anyone who is planning to purchase a car in Canada should at least consider buying a U.S import,” says Mark Sandelin. “If the dollar continues to climb, it may really open the door for big savings.”

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