Truths about Warranty on Previous Canadian Vehicles.
Warranty on Previous Canadian vehicles.
In this newsletter, I hope to shed some light on the “VOIDED warranty on Canadian cars” concern
🚩Let's start here.
My take on previous Canadian vehicles and warranty issues, OEM policies.
🔖Auto manufacturers price their new vehicles to what each international market will bear.
Their pricing strategies are based on much more complex economic algorithms and actuarial issues than we need to understand. Population densities, GDP, jobs, interest rates, market share, etc., all factor in. What we can easily understand is: When there is a dramatic spike in foreign exchange dynamics, windows open, making export opportunities and a grey market arbitrage temporarily available.
The manufacturers price their new units to be competitive in each individual international market. They cannot price their new vehicles to each market based on currency fluctuations. The swings are far too dramatic and frequent.
They simply cannot build a marketing strategy around that volatility.
This foreign exchange dynamic creates a serious problem for the manufacturers that operate in free trade zones. Much like we do here in Canada/USA. An open flow of brand-new units would severely threaten franchise dealerships and disrupt things like allocation protocols etc.
To thwart this cross-border flow of vehicles, all manufacturers have policies in place. Policies that either void or limit the transfer of OEM warranty.
In effect, without these protectionist policies in place, Billy Joe’s Gas and Lube in Anytown, USA could also have his dealers license… and if he had access to $$… could have a front row full of brand-new Ford Bronco’s that were originally allocated and sent to the Canadian market. "Billy Joe’s G&L" could be directly across the street from “City Ford” who invested millions of dollars in the franchise and building…does everything right… and still can’t get any Bronco’s. Not an ideal situation for the franchise dealers or the OEMs.
Some manufacturers will allow the transfer of the OEM warranty only after certain milestones are met. This hinders the flow of brand-new… but doesn’t inhibit the flow of pre-owned.
- GM: 6 months/7500 miles
- Ford: 6 months (CPO eligible afterward)
- Nissan/Infiniti: 6 months
- CDJR previous rentals: 6 months 9,000 miles
However, Certain manufacturers have chosen to simply void all warranties altogether, including pre-owned vehicles. Factory warranties do not transfer from market to market… period…
🚨 Keep reading… This is where it gets good.🤩