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Q:
Why do BMW models appear to be less expensive in the U.S.?
A:
While on the surface a U.S. vehicle may appear to be less expensive, there are several other factors that would significantly increase the cost of purchasing and owning a U.S. vehicle.
These include:

• Features - Canadian and U.S. vehicles generally have different standard equipment levels; as a result, the base MSRP is not an accurate indicator of the actual price difference. For instance, on the BMW 335i Cabriolet, the U.S. model includes Tire Pressure Monitor (approximate value of $350) as standard equipment on top of the base model. However, additional standard equipment on the Canadian model includes heated seats, lumbar support, auto-dimming interior and exterior mirrors, electric compass, universal garage door opener, through load with transport bag and Park Distance Control. Combined, all of the Canadian equipment would have a value of approximately $2,400, significantly reducing the price advantage of the U.S. model.
• No-Charge Scheduled Maintenance - For a vehicle that is driven average kilometers and serviced on a regular basis, the value of the BMW Canada 4-year/80,000KM No-Charge Scheduled Maintenance program can range from $600 to over $1,000. Any vehicles imported from the U.S. would not benefit from this program. As a result, scheduled maintenance would be an additional ongoing cost incurred by the customer throughout the ownership period. BMW USA does offer a similar program for their vehicles, however, in order to take advantage of these services, it would be necessary for the customer to return to a U.S. Retailer to perform any included services, as this added value feature is not transferable from the U.S. to Canada (and vice versa). This could result in significant additional expense and inconvenience for the customer when one considers the time and cost necessary to travel to and from the U.S. for routine maintenance.
• Importation Costs - Before a U.S. vehicle can be imported and registered for use in Canada, there are several steps that must be taken to ensure that the vehicle complies with Canadian vehicle regulations. Some of these steps include:
  • Vehicle Inspection - this inspection is typically required, with costs dependent on any required modifications
  • Daytime running lights - the cost to add mandatory daytime running lights to a vehicle ranges from a few hundred to $2,000, depending on the model
  • Recall compliance letter - this document must be obtained from BMW Group Canada, at a cost of $500. Please allow for 15 -20 business days for the letter to be processed.
  • Federal and Provincial Taxes - all applicable taxes must be paid on the converted vehicle value (purchase price converted to Canadian dollars)
  • Import duty - 6.1% of vehicle value must be paid on most vehicles
  • Customs Brokerage - additional charges for the consumer if they elect to have a third party complete all necessary documentation and import requirements
  • Green Levy and Air Excise Tax - any additional excise taxes also apply to vehicles imported to Canada. The rates are equivalent to that charged for the same vehicle purchased in Canada, the only difference being that for a U.S. vehicle these taxes are paid at the time of import
• Leasing - considering that the majority of BMW customers in Canada lease their vehicles, it should be noted that a U.S. vehicle typically cannot be leased directly in the U.S. by non-residents. In addition, Canadian customers benefit from the strong residual values of BMW vehicles in Canada, including optimal leasing programs and interest rates. Given these facts, the only sound choice for someone interested in leasing is to do so with a Canadian BMW Retailer, through BMW Financial Services Canada.

Q:
Can I still lease or finance a U.S. vehicle through BMW Financial Services Canada?
A:
No, U.S. vehicles cannot be leased or financed through BMW Financial Services Canada. As a result, the customer must purchase the vehicle outright and is not able to take advantage of sensible monthly lease payments resulting from strong residual values of BMW Canada vehicles, or any special rates and programs that may apply to a specific model or Series.

Q:
Do all U.S. warranties and services still apply to vehicles imported to Canada?
A:
No, vehicles imported from the U.S. are not eligible for certain services that would otherwise be available to the customer. The absence of such services can result in significant additional cost and inconvenience to the customer during ownership. The following table outlines services affected through importation to Canada:

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