Mercedes-Benz: a perfect balance of automotive intelligence and an enthusiast’s passion. Every model is evocative. Provocative. Emotional. And yet, we’ve given nothing away in terms of security, innovation and value. The only place to revel in the best in driving excitement is behind the wheel of a Mercedes-Benz.
Welcome
October 19, 2008Why you should buy Mercedes in Canada
October 19, 2008You’re seriously thinking of buying a Mercedes-Benz product. Great, we’re delighted. By now, you’ve heard and read that goods are less expensive in the United States and since the Canadian dollar is still quite strong at the moment, you probably have had a quick look on the web to compare prices. What you see surprises you.
Let us start by saying that a simple MSRP* comparison is inaccurate at best and only represents part of the price story.
The information provided below explains the many advantages of purchasing or leasing an equipped-for-Canada Mercedes-Benz or smart vehicle from an authorized Canadian Mercedes-Benz/smart dealer.
Cars built specifically for the Canadian market
The Canadian market is different. Some vehicle types and engines such as the B-Class, C350 4MATIC, E300 4MATIC, S450 4MATIC are NOT sold in the U.S. market.
One critical difference when comparing prices between the two countries is equipment levels. In many cases, equipped-for-Canada cars are better equipped than those in the U.S. When establishing equipment levels for the Canadian market, Mercedes-Benz Canada chooses standard features and equipment that are best suited to meet the challenge of Canada’s wide-ranging environmental and driving conditions and the needs of Canadian customers.
There are also equipment differences. Depending on the model, Canadian and U.S. vehicles can differ considerably in terms of specifications. Unlike U.S. vehicles, equipped-for-Canada vehicles may include any of the following features in terms of specification or standard equipment:
- Heated windshield washer system;
- All-season tires;
- Headlamp washers;
- Bi-xenon headlamps;
- Heated exterior mirrors;
- Factory/VPC applied undercoating for corrosion protection
- Other equipment and/or modifications specific to colder climates.
Purchasing and leasing benefits
When customers purchase or lease an equipped-for-Canada Mercedes-Benz or smart vehicle, they also benefit from the support and service that only Mercedes-Benz Canada and its authorized Mercedes-Benz/smart dealer network can provide.
Mercedes-Benz Financial offers very attractive lease and finance rates in addition to loyalty programs. New vehicle promotions, programs, and incentives offered by Mercedes-Benz Canada and Mercedes-Benz Financial in Canada are only available on equipped-for-Canada Mercedes-Benz and smart vehicles purchased from an authorized Canadian Mercedes-Benz/smart dealer.
These include:
- Highly flexible financing and leasing programs at attractive market prices
- Convenient lease renewal process.
- Exemption of multiple security deposits that may further reduce borrowing costs.
Because U.S. vehicles cannot be leased from Mercedes-Benz Financial in Canada, the customer is exposed to the full risk of the potential resale value. Residual values on U.S. vehicles are generally lower than residual values on equipped-for-Canada vehicles which would suggest vehicles imported from the U.S. will depreciate more than Canadian vehicles.
Cash Incentive program
Mercedes-Benz Canada also offers a cash (incentive) to its buyers who prefer to pay cash or finance their vehicles with a third party financial provider. This initiative will benefit customers who do not take advantage of the attractive lease and finance subsidies currently available on Mercedes-Benz models. Since U.S. vehicles cannot be leased from Mercedes-Benz Financial in Canada, this cash subsidy is yet another incentive to buy in Canada.
Legal and regulatory issues
Only equipped-for-Canada Mercedes-Benz and smart vehicles may qualify for certain incentives provided by the various Canadian regulatory bodies.
Vehicles purchased in the United States may be ineligible for the Canadian federal “green” incentive. Additionally, U.S. vehicles are subject to the following costs, over and above any state taxes or other charges that may be applicable upon acquisition of the vehicle in the U.S. which may be:
- Import duties of 6.1% on all German built vehicles;
- Excise tax (green levy) depending on fuel consumption;
- GST and provincial sales tax;
- Modification and RIV Fees: Costs to modify a U.S. vehicle to ensure compliance with Canadian regulations vary by model and may include installing daytime running lights and changing instrumentation/comfort features. This process can add up financially and take an extended time to complete. After modifications have been carried out, the vehicle must be inspected by an agent of the Registrar of Imported Vehicles.
- Customs clearance at the border is also required.
Warranty and service benefits
A U.S. vehicle is entitled to the standard 4 years/80,000 km warranty, 8 years/130,000 km emission warranty and an adjustment period of 1 year/20,000 km.
Equipped-for-Canada vehicles have the following coverage not available to U.S. imports:
- 2 years / 40,000 km wear & tear, covering brake pads, rotors as well as light bulbs.
- 5-year perforation corrosion coverage.
- Full battery coverage up to 4 years / 80,000 km (U.S. vehicles are covered for 2 years / 40,000 km).
- Extended Limited Warranty or Star Certified / pre-owned warranties will not be issued by Mercedes-Benz Canada for U.S. vehicles.
- Free service pick-up and delivery for S-Class, SL-Class, CL-Class, and G-Class models from and to customer’s residence or office.
- Mercedes-Benz Canada Inc. provides vehicle owners with Mercedes-Benz Roadside Assistance, 24 hours, 365 days of the year, for four years.
- Goodwill consideration after the expiration of the new car warranty.
Service Implications
The Canadian dealer organization is trained and equipped to service equipped-for-Canada vehicles. While the Canadian dealer organization provides warranty and other services for U.S. vehicles “visiting” Canada, the organization is not set up to provide such services for U.S. vehicles “resident” in Canada. For example, U.S. only parts in U.S. vehicles are not stocked in Canada.
Confidence, Trust and Peace of Mind
Mercedes-Benz Canada’s dealer network is solid, trustworthy and reliable. Our authorized retailers and service centres are guided by rigorous and exacting standards. Mercedes-Benz Canada works very closely with its dealers to ensure that customers have the highest level of confidence, trust and peace of mind when buying or leasing a Mercedes-Benz or smart product.
For the dealer, a sale to a local customer is the beginning of a long-term, loyal relationship; for the customer, buying the car locally means a superior ownership experience. Customers are encouraged to buy their car where they intend to service it, as they will benefit from local dealers’ expertise on Canadian-equipped cars and knowledge of Canadian support programs.
While it is ultimately the dealer’s decision, there is no certainty that dealers will accept U.S. vehicles as trade-ins. If a dealer refuses to take a U.S. import on trade, trade-in tax credit cannot be claimed on any subsequent purchase.
All of Mercedes-Benz Canada’s programs and measures (vehicle specifications, equipment levels, options, residual values, warranties, goodwill, service conveniences, etc.) are based on the particularities of the Canadian market environment and have been designed specifically for the protection, comfort, and convenience of the Canadian customer.
We trust that these points will convince you buy Canadian. We encourage you to visit one of the 54 authorized Mercedes-Benz dealerships in Canada. A sales consultant will be happy to spend the necessary time to show you in more details the significant benefits of buying locally.
Mercedes-Benz is dedicated to delivering the best ownership experience in the automotive luxury segment.
(* Dealers may sell for less.)
Mercedes-Benz A-Class History
October 19, 2008Production of the W168 A-Class began in 1997. It was also the first front wheel drive passenger car from Mercedes-Benz. Its front engine, front wheel drive layout was quite unusual for Mercedes. To date, about 1.6 million units have been sold worldwide
One innovation of the W168 was a frontal-impact absorption system called the “Sandwich” (see patents DE4326 9 and DE4400132 in the name of Mercedes-Benz). In the event of a violent frontal impact, the engine and transmission would slide underneath the floor below the pedals rather than entering the passenger compartment.
The W168 became infamous in 1997 after flipping over during the traditional “moose test” performed by the Swedish automobile publication Teknikens Värld. According to the report, the W168 overturned when maneuvering to avoid the “moose”. Mercedes initially denied the problem, but then took the surprising step of recalling all units sold to date (2,600) and suspending distribution until the problem was solved by adding electronic stability control and modifying the suspension. This marked the world première of stability control in a small car. Nevertheless, the W168 A-Class was voted the worst-handling car in Britain in the Top Gear Survey 2007 (completed by owners of the vehicles).
