Is It Cheaper to Buy a Truck in Canada or the USA?

If you are considering buying a truck, you may wonder whether it’s cheaper to buy from a dealer in Canada or the USA. This decision involves many different factors, including currency exchange rates, import taxes, and shipping fees. Aside from the financial side of it, you should really consider things like the availability of specific truck models as well. In this article, we’ll take each of these factors into consideration so as to provide a detailed answer to whether you’re better off buying your truck in Canada or the US.

Factors Affecting the Cost of Buying a Truck in Canada vs. the US

The cost of buying a truck in Canada in comparison to the US will be affected by several different things. Consider the different prices due to currency exchange rates alone. This can have a huge impact on the final cost of the vehicle. Still, there are other expenses to keep in mind at the same time. For example, when purchasing a truck in a different country you will have to pay whatever necessary fees required throughout the importation process. There’s also the area of vehicle maintenance to consider. Will the dealership you purchased from continue to offer vehicle service if the truck has been taken out of the country? These are all very real concerns, and we will address each in detail.

Currency Exchange Rates

First of all, let’s talk about the exchange rates between countries. The currency difference between the Canadian dollar (CAD) and the US dollar (USD) fluctuates daily and can have a substantial impact on the cost comparison, therefore, affecting the conclusion we are trying to reach as to where trucks are cheaper.

When the Canadian dollar is high compared to the US dollar, finding and buying a truck in the States can seem appealing to Canadians. On the other hand, when the Canadian dollar is weak, a truck with a price comparable to one in Canada would end up costing more in their currency.

For those financing their truck, the cost can also be affected, since loans taken out in one currency may have different interest rates from those in a different currency. To get an accurate idea of the price difference, you’ll need to consider not only the exchange rate as it is right now but also fluctuations in the future which could affect your price in the long run.

Import Taxes and Duties

Import taxes and duties are an unpleasant reality you’ll have to face when thinking of buying a vehicle from another country. After all, import duties and taxes can greatly impact the final price of your vehicle. The import duty on trucks into the US is relatively high, often around 25%.

Vehicles manufactured in the US, however, and imported into Canada may benefit from trade agreements like the USMCA (United States-Mexico-Canada Agreement), which can cut down the cost of - or even eliminate - certain taxes and duties.

Besides the import fees, you may have to pay other taxes such as the Goods and Services Tax (GST) in Canada or state-specific taxes in the US. These fees will likely vary depending on your jurisdiction. As a prospective buyer, you should be well-informed about the specific import regulations and tax obligations in your respective country.

Transportation Costs

If you’re buying a truck from another country, shipping costs are another detail you’ll want to think about. When you purchase a vehicle from the US and bring it into Canada, or vice versa, you may want to consider shipping it to avoid the hassle of driving over the border in person. Save up to 20% on shipping fees when you choose A-1 Auto Transport. We guarantee an excellent transportation experience through great customer service, trackable deliveries, and fair pricing.

As you probably expected, the cost of transportation is calculated according to the distance the vehicle must be shipped. The price can go up or down depending on the type of transportation you use. Some common options are open-air, enclosed transport, and terminal-to-terminal.

Availability of Specific Truck Models

You may have started searching beyond your country for a specific truck model because you couldn’t find what you were looking for in your own country. There are often certain truck models that are easier to locate in the US than in Canada. The demand and supply in each market affect the pricing and availability of both new and used trucks.

The US, with its larger market, might offer a bigger selection of different truck models and trim levels. Some of these models might be released in the US before they’re available in Canada, which gives Americans earlier access. Incentives, rebates, and financing options offered by manufacturers can also vary a lot between countries, which - in the end - will change the overall cost.

Consideration of Warranty and Maintenance Costs

As a long-term owner, rather than just a buyer, you’ll need to realize that it’s not only the initial costs that must be calculated. The warranty and maintenance pricing must be taken into account if you want an accurate idea of cost differences between countries. Trucks bought in the US often have different warranty coverage compared to those bought in Canada. Some dealerships offer warranties that are valid only in their country, which could be quite a disadvantage if a truck bought in the US needs warranty service in Canada, or the other way around.

Maintenance costs are sure to change between these two countries because of different labor rates, available parts, and the cost of living. If you’re thinking of purchasing a truck from your neighboring country, it’s a good idea to first research whether local dealerships can offer maintenance on imported vehicles. You may also want to inquire about whether they honor warranties from another country.

Case Studies Comparing Prices of Popular Truck Models in Both Countries

To provide you with a better picture, let’s compare the prices of some popular truck models in Canada and the US. For this comparison, we’ll take a look at the Ford F-150, the Chevrolet Silverado, and the Ram 1500.

Ford F-150

• USA Price: The base model of the 2024 Ford F-150 starts at around $37,000 USD.
• Canada Price: The same model in Canada starts at approximately $50,000 CAD.

Assuming an exchange rate of 1 USD = 1.37 CAD, the US price converts to right around $50,700 CAD, making it slightly cheaper to buy in Canada after accounting for the exchange rate.

Chevrolet Silverado

• USA Price: Similar to the Ford F-150, the base model of the 2024 Chevrolet Silverado starts at about $36,800 USD.
• Canada Price: In Canada, the starting price is around $47,900 CAD.

Using the same exchange rate, the US price converts to $50,400 CAD, this time indicating a significant cost saving when buying in Canada.

Ram 1500

• USA Price: The Ram 1500 starts at approximately $39,400 USD.
• Canada Price: The Canadian starting price is around $48,600 CAD.

Converting the US price to CAD gives $53,900 CAD, showing that it may be cheaper to purchase this model in Canada as well.

Keep in mind that the price difference will fluctuate as the exchange rate changes from one time to the next. Also, this number includes only the price of the truck and doesn’t take into account the previously discussed costs that get added to the overall price.

These case studies show us that (based purely on the MSRP and current exchange rates) trucks are generally cheaper in Canada. Before making your decision, though, remember to also calculate additional costs such as import duties and shipping prices. You will also want to research the feasibility of warranty service in your country.

Recommendation for Buying a Truck in Canada vs. the USA

We’ve concluded that the price of trucks is usually lower in Canada, though it should be mentioned that the overall cost-efficiency of buying from Canada depends on many different things. You need to carefully consider exchange rates at the time you are buying, import taxes and duties, shipping costs (if transporting your truck instead of driving it over), and availability of the truck model you want to get. Also, don’t forget to look into whether you can get maintenance done on the vehicle in your home country.

For American buyers, bringing a truck from Canada could be cheaper if the exchange rate is good at the time, and if they can import the vehicle without too many additional costs. You’ll need to verify that the vehicle you’re importing complies with all safety regulations in the US.

Depending on where you live, you should also weigh the convenience (or inconvenience) and the possible risks of importing a vehicle before you negotiate the purchase.

In the end, your decision must be based on your own unique circumstances, preferences, and the cost differences for your situation. It’s always a good idea as a buyer to do your research and compare all related costs and benefits before making your final decision. It can be very helpful to consult with an automotive expert who can give you advice tailored to your situation.

If you are considering buying a truck from your neighboring country, start the process today by lining up a shipping provider. At A-1 Auto Transport, we offer fair pricing, trackable deliveries, and unfailing punctuality. Get your free shipping quote today!