GM Canada Warranty Question

[mr.nice]

Just curious...this search that has stretched a couple months to replace my Avalanche (coming off lease in 5 weeks) is contiuning.

My latest option is picking up something used in the US, and bringing it back to Canada. Prices are much more reasonable even after the exchange rate, as is the selection.

After driving one here, of all things an 03 or 04 Escaldade ESV (maybe EXT), mainly because of the 6.0L. Maybe a Denali XL too. Important is that the wife likes it too (although I am sure she'd take a Suburban for a lot less $$, and no 6.0L engine). The one here I drove got sold the next day.

I've read all up about the hoops that have to be jumped through at US Customs and at Canadian customs, so I know all about what to expect.

What I haven't found out is if a GM Canada dealer will honor a factory warranty for a car brought in from the US. Of course, assuming it still has time/km's left in a factory warranty.

Pretty much the only thing stopping me from getting completely serious about this..even then it may not. The prices down in the US are ridiculous. So even with the flight down there, the paperwork and hassles, i'd be able to get an 04 ESV, still with some warranty room for $8K less than an 03 is here.

So can I "import" a GM car from the US, and have no hassles if it needs warranty work done on it? Or is it null and void when I bring it across?

Sorry if this has been answered somewhere else already....

Cheers,

[97regalGS]

i'm fairly certain the warranty on is a NA warranty, valid in Cda and USA.

you do have some hurdles to cross with Canada Customs, so i would research them first before you make a purchase.

i was seriously looking at that route but didn't pull the trigger.

[mr.nice]

i'm fairly certain the warranty on is a NA warranty, valid in Cda and USA. 

you do have some hurdles to cross with Canada Customs, so i would research them first before you make a purchase.

i was seriously looking at that route but didn't pull the trigger.

192606[/snapback]

Yeah, I'd have to haev a bill of sale and some other documentation sent to US customs, at least 3 days in advance.

Then, onto Canadian customs to pay GST, AC Tax and the RIV paperwork fee. Obviously insurance would have to be in place. Then given the outline for what work has to be done on the vehicle to confrom to Canadian laws (usually safety work, if any..usually its only DRLs, but Cadillacs have those standarad even in the US, I think). If there is any, you have to go to Canadian tire, and get them to do the work and send the paperwork in within 45 days.

I know I'm missing a few little things in there, but its pretty close to that procedure. No duty needs to be paid, as long as they were manufactured in the US/Canada/Mexico.

We'd make a holiday of it. Find a vehicle in one of the places where we have some friends that can check the vehicle out for us and get it inspected, then buy it submit the paperwork to US customs and make sure we have everything for Canadian cutsoms, then fly down, pick it up, drive it back.

It takes a bunch of hassle, time and some expense, but as mentioned, even after all that expense, we're still coming out well ahead, from the looks of whats available down there, usually with a lower milage, newer vehicle for significantly thousands less $.

[CARBIZ]

There are residency issues with buying new or nearly new vehicles and then exporting them.

If, as a tourist, you travel in the U.S. with your Canadian registered vehicle, you will have no warranty issues. However, as a Canadian resident with an American registered vehicle in Canada, you may have problems. These vehicles are considered "grey market" and you may be denied warranty in Canada.

We had these problems a few years back when the Canadian dollar was about the value of a peso, and Americans would buy Suburbans, etc. up here and export them back. Now, the problem is reversing because cars are way over priced here in Canada.

Be very careful with what you do. At our dealership, if a customer even BREATHES the possibility that they may be exporting the vehicle they get shown the door (in the nicest possible way, of course!)

[mr.nice]

There are residency issues with buying new or nearly new vehicles and then exporting them. 

If, as a tourist, you travel in the U.S. with your Canadian registered vehicle, you will have no warranty issues.  However, as a Canadian resident with an American registered vehicle in Canada, you may have problems.  These vehicles are considered "grey market" and you may be denied warranty in Canada.

  We had these problems a few years back when the Canadian dollar was about the value of a peso, and Americans would buy Suburbans, etc. up here and export them back.  Now, the problem is reversing because cars are way over priced here in Canada.

Be very careful with what you do.  At our dealership, if a customer even BREATHES the possibility that they may be exporting the vehicle they get shown the door (in the nicest possible way, of course!)

192769[/snapback]

To be clear, it would be a 3-4 year old GM vehicle. Not new. The majority that i've been taking a second look at have not been from a GM dealer in the US, either private sales, our a 3rd party pre-owned lot.

I am still trying to wrap my head around why its not clear that GM should honor a warranty for one of thier vehicles in North America, no matter what North American country the car was purchased in, or what the residency of the next owner/vehcile in fact is.

To make the point, after 1 or 2 bad service (warranty issues with the Av bed leaking) experiences with my Avalanches at my dealer (I bought through there as we knew the Sales Manager for 10+ year and had bought 5 cars off him at the various dealers he moved between in that time), so I took my Avalanche to another GM dealer, and had it fixed the first time without issue.

Why should this situation be really any different?

I can partially understand the notion of dealers being upset that its their manpower and labour used, when the vehicle wasn't purchased there. That said, I have had no issue in my above case. As a dealer, you're part of the GM network, and I suppose that GM reimburses those dealers for the time and expense for warranty repairs. I don't think it matters if the VIN shows as a US VIN or a Canadian VIN.

Plus, the decent service received under warranty issues at a dealer is going to make me more likely to return for the regular maintence at the same dealer down the road. Which means $$ for that dealer.

Am I missing something? I know some smaller Asian manufactuers don't honor it either across the border. They also sell different models of vehicles that you can't get in Canada, but can in the US, and vice versa. But GM vehicles such as the Escalade are virtually identically sold (minus block heaters, I am sure) across North America.

Bottom line, Carbiz, if I was a regular customer of your maintence department for my scheduled service over the past 3+ years, and one day next month I bring in my new vehicle, an imported 2004 Escalade, still under factory warranty, to fix a leaky sunroof under warranty, for example, they'd reject me or no?

If they did rejct warranty service, can they point to anything from GM (Canada or US) directly, preventing them from fixing my legally imported and registered Escalade under warranty?

Edited September 13, 2006 by mr.nice

[I hope GMRULES again]

Be careful and do all of your homework before buying. I now that some companies will not honor the warranty if the vehicle was originally sold in another country but I'm not sure if GM is one of them. Service is one thing but on a warranty repair as soon as they type in the VIN they know everything about the vehicle and there are differences with emissions etc. For example last year I had a problem with my Cavalier that turned out to be the Body Control Module and the service manager was explaining to me that when the mechanic had my car plugged into the computer he was getting all kinds of wacky readings because the car was equipped with a BCM for a U.S. car. My car was bought new from this same dealership so I guess it left the factory like this. From that day on I had lights on the dash such as the little orange light that tells you when to shift that I never had before.

[CARBIZ]

I don't think you'd have a problem with a 3 or 4 year old vehicle. With a new vehicle, yes, you would have a problem. I know Chrysler cracked down on this, too.

The problem is with "market pricing." Right now, the MSRP of a lot of vehicles are higher in Canada, even when adjused for our lower dollar, than buying the equivalent vehicle in the U.S. On a Malibu or Impala, the difference may not be worth it, but on a $66,000 Tahoe that can be had for $45,000 U.S., it would be worth it to import the vehicle.

To stop this "illegal" border hopping, the manufactuters combat that with disallowing the warranty. Of course, if you had a California license and address, the dealer would probably go ahead, but these rules are the manufacturer's, not the dealer. Remember: most often we are on YOUR side.

I don't know why GM and others do this. At one time, dealers would get in serious trouble for knowingly selling a vehicle to somone who was going to export it. I personally had $7,000 charged back against a Suburban deal that I did about 6 years ago because we hadn't done "due dilligence" in ensuring this guy wasn't going to turn around and flip it in the U.S.

Now, the situation is reversed. Frankly, right now Canadians are getting gouged. It hurts when the vehicles are built here (in Oshawa) and can be had across the border in Buffalo for cheaper.

[staceface]

Actually, Canada won't deny a US warranty once the vehicle has been registered for 6 mos in Canada or has 12, 000 km on the odometer. For example, you could buy and register an '06 with 5000 km on it, you would be denied warranty until it has 12,000 km on it (or had been registered in Cda for 6 months).

Part of our hassle is changing the instrument cluster, I don't know if that's because our dealership is reselling the vehicle, or part of the cross border requirement, but I would check that out too.

BTW, other car makers may be different, this is GM specific.

Edited September 13, 2006 by staceface

[mr.nice]

Actually, Canada won't deny a US warranty once the vehicle has been registered for 6 mos in Canada or has 12, 000 km on the odometer.  For example, you could buy and register an '06 with 5000 km on it, you would be denied warranty until it has 12,000 km on it (or had been registered in Cda for 6 months).

Part of our hassle is changing the instrument cluster, I don't know if that's because our dealership is reselling the vehicle, or part of the cross border requirement, but I would check that out too.

BTW, other car makers may be different, this is GM specific.

193030[/snapback]

First, thanks for the replies, all.

Secondly, is the above GM policy, sounds a bit odd as far as intervals go?

Regarding the insturment cluster, I can't imagine there's any issue. The speedo reads in KM's and miles, and the digial odometer can be switched back and forth between metric and imperial (km and miles).

I have seen a used dealer here with an imported Escalade...there's a sticker, assumeably from Transprot Canada and all the border paperwork and regulations, that was placed on the door jam indicating that the vehicle meets the neccessary requirements, and listing the mileage (in km) as of when that sticker was placed/vehicle imported.

[BamBam]

Then, onto Canadian customs to pay GST, AC Tax and the RIV paperwork fee. Obviously insurance would have to be in place. Then given the outline for what work has to be done on the vehicle to confrom to Canadian laws (usually safety work, if any..usually its only DRLs, but Cadillacs have those standarad even in the US, I think). If there is any, you have to go to Canadian tire, and get them to do the work and send the paperwork in within 45 days.

192615[/snapback]

You get part of the paperwork at the border. Form 1 with a white & yellow copy to be exact. The Form 2 will come in the mail in 7-14 days after you cross the border. Form 2 will tell you what needs to be done. Don't take anything the customs agent says as gospel as it seems too many of them don't have the right information.

With a GM vehicle, all you'll typically need is the recall letter confirming that there are no current open safety recalls on the vehicle. Get it from GM Canada or get the dealer to print out a copy of the vehicle history using the VIN. A letter from the dealer itself will not be accepted.

Edited September 16, 2006 by BamBam