Friday, March 21, 2008

Import a BMW from the US and expect to shop around for modification quotes

Submitted by a UCanImport Subscriber who imported a BMW vehicle from the US:

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Submitted by a UCanImport Subscriber:

In Calgary the dealership has taken an aggressive approach to imported vehicles. If you call to book a service appt for a CDN vehicle, it’s a week to get in.

For US vehicles they’re making you wait 90 days!!! Kelowna BMW charged me $1350 for the cluster and programming installed (still a cash grab), but the Calgary dealership charges $2200 for the cluster installed and $400 for the DRL programming. Edmonton was similar in price.

I drove out and got the work done in Kelowna. I’d be super happy if they hadn’t put the wrong cluster in!!!

The 335, because of the bi-turbos, has an oil temp gauge in the cluster, all lower models have a fuel economy gauge in that spot. Guess which one they put in mine? Then they argued that it was the right one. I walked them over to a Canadian 335 sitting on their showroom floor and showed them the oil temp gauge. Apparently that wasn’t enough as I’m still fighting with them about it.

Anyway, I got my clearance letter and I just finished my import work this week. It was a pain. I like the car, but am pissed off at BMW Canada, and all the brands that are doing the same thing.

How do they think this will create good long term relationships with these possible new customers? Surely long term either the dollar will drop back, or the prices will realign. This short sighted cash grab protectionism will only hurt their image, customer relations, and in the end, bottom line.

Everyone who has asked me for help, I’ve directed towards brands that are treating importers fairly.

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UCanImport says:

Thank you for sharing your story. What we find interesting is that BMW Canada refuses to acknowledge any modification work completed in the US stating that they must verify it themselves through a Canadian dealership - as they cannot vouch for the quality of workmanship of their colleagues in the south.

We agree the pricing practices are unfair and illogical, especially since they were implemented unilaterally at the sole discretion of BMW Canada. The issue here is why Transport Canada would allow these practices to continue. If the modification work can be completed to meet Canadian Safety Standards, why should BMW dictate where and how they get done.

Here are some of BMW's justifications for their charges. I think if I got a CarFax report and an internal system printout (free) from the US dealership, I would be achieving the same thing as Mr. Caton describes below. The other point is that the word "service" is used incorrectly. It should only apply to something I have requested or something given to me at no charge; to dictate the charges within a monopoly seems unfair.

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Dear [importer],

I am in receipt of your email and offer this reply.

In your letter you reference the recall clearance letter and our $500 charge for it. You also state one of our staff suggested it provides some protection, please let me explain.

The $500.00 really covers the cost of providing a service for you which results in you getting the letter you require. Once we get the Retailer’s request for your letter we check both the US data base (which is not part of our regular warranty system) and the Car Fax system to view the warranty status and see if there are any outstanding recalls, (we are presently developing a system where we can notify the new owners in Canada of any future recalls as at present those notices would only be sent to the original owner in the US). We then enter your information and the vehicle’s into our system so our data base is up to date. From there we prepare the letter which goes to two officers of our company for signing. Once done it goes back to the Retailer for distribution to you. Before the letter was even requested from us your dealership inspected the vin plates on your car, entered the information into their system and consulted with you.

As you can appreciate this all costs money and because of the large volume of BMWs coming into Canada we have had to hire additional staff to administer it and therefore there is a charge.

In terms of the protection this all provides. Not everyone thinks to get a Car Fax (you were smart) so we get it for you and we check our US warranty system. Once done we can tell you the status of your warranty, now you may have already bought the car, but you will at least know then if its been in a bad accident, sold for salvage, been a flood car and whether the warranty is in force or not. Also, as I mentioned above we are developing a system to notify you of future recalls which could help keep us all safe.

We are sorry you are disappointed with our process and charges however, I am sure you are also in business and understand there are costs associated with providing services and while those costs could always be debated, we feel the fees we charge are reasonable based on our experience.

We hope you enjoy your car,

Best Regards,

Bruce Caton

National Manager, Pre-Owned

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Comments welcome.

5 comments:

Anonymous said...

My family and I were in San Diego recently. While there, I went to BMW of San Diego (one of the largest (by volume) "authorized" BMW dealers in California. I agreed to purchase a used 2006 530i for $39,000 (all-in) subject to confirming the Canadian import requirements. Here is the total math and the BMW Canada BS to boot...

$39,000 - purchase
$350 - letter of admissibility (required by BMW Canada)
$500 - Recall Letter (required by BMW Canada even though the car was being purchased from a large authorized BMW dealer?)
$1,250 - instrument cluster change-out (only performed by a Canadian BMW dealer)
$1,050 - HVAC control module change-out (only performed by a Canadian BMW dealer)
$200 - Modification to day-time running light switching module (only performed by a Canadian BMW dealer)
$328 - Inspection (only performed by a Canadian BMW dealer)

When you add these costs ($3,678) to the transporation, duty, RIV fees, etc, you end up +/- $10,000 over the price paid for the vehicle initially. Needless to say, we passed on the purchase. In addition to the above, BMW Canada could not assure me that there wouldn't be a myriad of other "rediculous" charges to come. This whole mess is just plain frustrating. BMW of San Diego is willing to sell cars for a fair price and BMW Canada is only interested in protecting its turf and enriching itself and its dealers at the expense of Canadians.

UCANIMPORT PUBLICATIONS said...

Thank you for sharing your story. Please contact the law firm of Dinning Hunter Lambert & Jackson using this link

http://www.ucanimport.com
/Lawsuit.aspx?t=downloads


Even if you did not complete the purchase this story (and quotations) shows that the tactics by BMW are completely and outrageously aimed at preventing purchases in the US.

Since they can't wipe out NAFTA they are doing whatever they can to stop you from buying in the States.

Anonymous said...

I am a little confused as to why the DRL modification cannot be done stateside. The RIV site (http://www.riv.ca/english/html/how_to_import.html) says that you need to bring the car to a Canadian Tire for federal inspection. If you already get the DRL work done in the states.. wouldn't you pass the inspection? At that point, why bother dealing with BMW Canada at all (other than to get the admissibility letter and the recall letter)

UCANIMPORT PUBLICATIONS said...

DRL standards are a Transport Canada requirement. However BMW Canada has told Transport Canada that only one of it's dealerships is allowed/authorized to certify that this standard has been successfully met.

Yes, it's a cash-grab. No, it doesn't make any sense that BMW techs in the US can't do this task.

And there is no other way to confirm that your vehicle meets Canadian Safety Standards until BMW gives you a Letter of Compliance.

Importers should be upset and should join the lawsuit which alleges that BMW is acting in contravention of the competition act.

More info at
http://www.ucanimport.com/lawsuit.aspx

Anonymous said...

Hypothetically, if you were to get a US BMW dealer to change the DRL such that they are permanently on, the BMW Canada people will STILL charge you to replace the instrument cluster?

There's no way to get away with just paying the $500 for the recall letter?