Topic: Importing a Subaru - Warranty Investigation

[slingo56]

I have been looking at importing a new Subaru Legacy GT from the US for awhile now and have been trying to get a definitive word on whether I would have warranty coverage in Canada. Sent an email to Subaru USA:

Could you please tell me if a new 2007 Subaru vehicle purchased from a US dealer by a Canadian citizen and then imported into Canada would have the vehicle warranty honored in Canada by Canadian dealers?

This was thier response:

Thank you for visiting the Subaru of America Web site and for your interest in Subaru products.  Subaru of America and Subaru Canada have a reciprocal warranty agreement wherein we support the warranties on each other's vehicles when driven in the other country.

You will need to check with the Registrar to see if you can import a US spec 2007 Subaru vehicle into Canada.  In order for the Canadian Registrar to allow a US spec 2007 Subaru vehicle to be imported into Canada, they need confirmation from Subaru Canada that our 2007 models meet the standards of Canada. 

If Subaru Canada has not provided this information to the Canadian Registrar, you will need to check with Subaru Canada regarding this.  Subaru Canada, Inc. may be visited on-line (www.subaru.ca) or by contacting 5990 Falborne Street - Mississauga, Ontario L5R3S7 - Phone:  905-568-4959 - Fax:  905-568-8087.


Contacted Subaru Canada with the same question, their response:

Thank you for contacting Subaru Canada, Inc. We regret the delay in our reply.

There exists a reciprocal warranty agreement between Subaru of America and Subaru Canada, Inc. This agreement covers US vehicle owners who have purchased US vehicles and currently reside and/or are traveling, transferred, or vacationing in Canada. The intent of the reciprocal warranty agreement is to allow US visitors the benefit of emergency warranty repairs while in Canada.

As it is an uncommon practice and only meant to offer assistance to US citizens vacationing or in transit through Canada your dealer may encounter difficulties determining if a repair is warrantable which may in turn delay the repair process. This program was not designed to accommodate Canadian residents who have purchased a Subaru vehicle in the United States for the purpose of importing the car into Canada.

Should you decide to import a US vehicle into Canada you will need to contact the NRIV (National Registrar of Imported Vehicles) at 1-888-848-8240 or online at www.riv.ca for additional information regarding this process.

THe way I read all of this is that the vehicle is probably covered but if it came right down the the legal interpretationit may not be. I know the Subaru warranty in the US says repairs need to be performed at a US dealer. This would be the legal interpretation.

What is everyones conclusion on this?

[sirAQUAMAN64]

Wording is put so that if you're a Cdn and buy from a US dealership, you're not covered. Tho your dealer may fight for 'goodwill', it's unlikely they would - you intentionally didn't buy from them!  Likewise, Subaru Canada doesn't have to provide it.

If you vacation in either country and require warranty work, you're covered. If you move from one country to the other, you're covered.

[No H2O]

There exists a reciprocal warranty agreement between Subaru of America and Subaru Canada, Inc. This agreement covers US vehicle owners who have purchased US vehicles and currently reside and/or are traveling, transferred, or vacationing in Canada. The intent of the reciprocal warranty agreement is to allow US visitors the benefit of emergency warranty repairs while in Canada.

What difference does it make???

Buy it down there. Then if you have a problem, tell them you were working down there and then brought the car back with you when you got transferred back to Canada.

I take it you want to buy down there due to better pricing? Well then, all Canada has to do is get competitive....haven't they heard of Free Trade?

[potter]

Just brought an '06 Outback back from the USA. Sweet vehicle, no probs at the border. Have a verbal OK from the local service guys re service and warranty work.  Dealer I bought from also called and discussed it with the local service guys.  No, I don't have any thing in writing.  Yes, I did save about 10,000 CDN.  Worst case senario--it's about a four hour drive to the nearest US dealer. Worth the gamble? Only you can decide.

[johngenx]

...Yes, I did save about 10,000 CDN...

I'll bet the car never needs more than $1000 in warranty work.  Even if you have to foot all the reapir bills, I'm willing to bet in the long run you'll be WAY ahead.

[No H2O]

Just brought an '06 Outback back from the USA. Yes, I did save about 10,000 CDN.

Just out of curiousity, what was MSRP (either including or not including PDE/freight) in the US and in Canada?

What were your costs for importing it; the broker at the border, duty, inspection in Canada and whatever else?

[potter]

total costs:     
             vehicle/PDI/freight   CDN23,469
                                    AC tax       100
                              import fee        206
                                        HST     1408
                                        PST     1878
                             airfare/motel      400     
                                              ------------
                                               27,461

[No H2O]

total costs:     
             vehicle/PDI/freight   CDN23,469
                                    AC tax       100
                              import fee        206
                                        HST     1408
                                        PST     1878
                             airfare/motel      400     
                                              ------------
                                               27,461

And what would it cost here, out the door?

Is the price you quoted MSRP or did you get a discount to bring it down to that?

Good concise info! Thanks.

[Loudpedal]

Wording is put so that if you're a Cdn and buy from a US dealership, you're not covered. Tho your dealer may fight for 'goodwill', it's unlikely they would - you intentionally didn't buy from them!  Likewise, Subaru Canada doesn't have to provide it.

Do you think dealers care where the car was purchased?  Many cars are purchased at non-local dealers (due to price, or relocation, etc).

Service is where dealers apparently make their money.  I would conclude that it would be in their interest to fight for "goodwill" as they will be the ones actually employing their service staff and billing the manufacturer, hence more service business for them.   

[potter]

MSRP here was $32,995.  freight/PDI/AC tax here is about $1500.  I did get an end of model year cash back incentive/rebate of $US2750, and my final "of the lot" US price was $20,995. Sweet, eh?

[MKII]

Wording is put so that if you're a Cdn and buy from a US dealership, you're not covered. Tho your dealer may fight for 'goodwill', it's unlikely they would - you intentionally didn't buy from them!  Likewise, Subaru Canada doesn't have to provide it.

Do you think dealers care where the car was purchased?  Many cars are purchased at non-local dealers (due to price, or relocation, etc).

Service is where dealers apparently make their money.  I would conclude that it would be in their interest to fight for "goodwill" as they will be the ones actually employing their service staff and billing the manufacturer, hence more service business for them.   

Loudpedal its a warranty issue, not a service issue. Warranty work has to be approved by Subaru Canada, not the dealers service department.

[No H2O]

MSRP here was $32,995.  freight/PDI/AC tax here is about $1500.  I did get an end of model year cash back incentive/rebate of $US2750, and my final "of the lot" US price was $20,995. Sweet, eh?

More like WOW!

Good to see someone take the trouble; most couldn't be bothered and would sooner throw out $10K (must be nice to be rich).

I order most of my parts and accessories from the US. They have in in stock, for less, and I can get it in a week.

[sirAQUAMAN64]

I talked with Toyota Canada about importing a Scion xB last year. Because it's not a model sold in Canada, they said warranty would be covered, but my local Toyota dealership would have to agree to service it. I spoke with the dealer, they said they already service one and would be happy to look after mine. So in that case, all was well.

In the Subaru's case, Subaru Canada and the dealer lost the sale. Sure, service is where dealers make their money, but if Subaru Canada doesn't pay warranty work (which apparently they don't have to) the dealer's not going to get it. And because Subaru parts are not your garden variety found at Crappy Tire odds are the work will have to be done at the dealership if major regardless if you want a driveable car - so while the service dept may sympathize with you and perhaps lower the tab, odds are you as the vehicle owner is likely to be footing the bill.

All that said, I think the savings up front well justify the US purchase. Over my 3 vehicle ownership experiences, I've rarely had to use warranty work. And my engine/tranny have never given me trouble. I hear Subaru O2 sensors or something may be troublesome, but even so, they won't add up to $10,000. Invest that elsewhere and make money on it to pay for what would be 'warranty' work if necessary at some point.

[Cord]

Wording is put so that if you're a Cdn and buy from a US dealership, you're not covered. Tho your dealer may fight for 'goodwill', it's unlikely they would - you intentionally didn't buy from them!  Likewise, Subaru Canada doesn't have to provide it.

Do you think dealers care where the car was purchased?  Many cars are purchased at non-local dealers (due to price, or relocation, etc).

Service is where dealers apparently make their money.  I would conclude that it would be in their interest to fight for "goodwill" as they will be the ones actually employing their service staff and billing the manufacturer, hence more service business for them.   

Of course they care. They don't have unlimited resources. For example, only one loaner car left but two customers, one of which bought their car there. Which customer do you think will get it? Dealers don't get extra "points" (or money) for convincing the manufacturer to perform "goodwill" repairs - quite the opposite. Manufacturers keep track of those requests and will deny them if they become too frequent, so dealers tend to save those requests for loyal customers. They may go out on a limb to help someone that bought a car elsewhere but odds are against it.

[MKII]

More like WOW!

Good to see someone take the trouble; most couldn't be bothered and would sooner throw out $10K (must be nice to be rich).

I order most of my parts and accessories from the US. They have in in stock, for less, and I can get it in a week.

I can see the benefit for the cash buyer in this situation.

But isn't there a legal aspect whereas if you purchase a product from a foreign market your rights/protection as a consumer are mute?

[Loudpedal]

Wording is put so that if you're a Cdn and buy from a US dealership, you're not covered. Tho your dealer may fight for 'goodwill', it's unlikely they would - you intentionally didn't buy from them!  Likewise, Subaru Canada doesn't have to provide it.

Do you think dealers care where the car was purchased?  Many cars are purchased at non-local dealers (due to price, or relocation, etc).

Service is where dealers apparently make their money.  I would conclude that it would be in their interest to fight for "goodwill" as they will be the ones actually employing their service staff and billing the manufacturer, hence more service business for them.   

Loudpedal its a warranty issue, not a service issue. Warranty work has to be approved by Subaru Canada, not the dealers service department.

Agreed.  However, the service department at a reputable dealer is not begging the manufacturer to allow them to approve some warranty work.  It's suprisingly easy for them to justify.  Individual dealers are more empowered to make decisions on warranty claim work than what they let on (at least the VW/Audi/Porsche dealer that I worked at).   

What I'm saying is that a dealer service dept would likely find a way to do any type of warranty work, rather than denying it to somehow 'punish' a customer for not purchasing the car at their dealer.   Service depts and sales depts, while under the same roof, are managed very much like to separate business units.   

[The Mighty Duck]

:iagree

In any case I've heard of, only very major warranty work (like, say, replacing a faulty engine!) has to be approved by the Manufacturer.  Most items are at the discretion of the Service Dept.

[siwash]

you didn't include 6% duty? is it made in the good ol USA, hence no duty?

Man, $27K  is what the Impreza will run you...

It almost doesn't make sense to buy here!

One advantage I have is that my sister lives in New England and therefore, no travel expenses...

I wonder if its worth it for the Impreza which retails for $18K US, $23.5K CDN.

What's the exchange rate these days, 1.15?

[TopGun]

It's been mentioned a 100 times I'm sure -- you'd better count on driving that thing into the dirt (not a bad assumption on a Subaru  )

You'll have a hard time selling the thing in Canada -- I think many would stay away from it as it's hard to track...many may think that it might be an insurance write-off reincarnated.

[Cord]

Individual dealers are more empowered to make decisions on warranty claim work than what they let on (at least the VW/Audi/Porsche dealer that I worked at).   

If they make money at it and can do it at their own discretion, then why would they want to keep it secret?