With the Canadian dollar currently hovering above par, many people have wondered about bringing the new 2008 gasoline powered smart car from the USA into Canada. With the price of a passion coupe in the USA coming in at $13,590, most people assume we are getting a raw deal at home.

But is that true?

The first major item to consider is that the warranty in the US is only 2 years/24,000 miles, whereas in Canada it is 4 years/80,000 kms. That alone represents an estimated value of $1,500

Then consider that the US cars are not as well equipped with standard options. Things like electric power assist steering, premium sound system, and heated seats come standard in Canada, but are options in the US.

Let’s compare apples to apples, and see how it works out:

Canada
Passion: 18,250
Silver tridion: inc.
Power steering: inc.
Heated seats: inc.
Premium sound: inc.

Total: 18,250

USA
Passion: 13,590
Silver tridion: 175
Power steering: 450
Heated seats: 220
Premium sound: 350

Total: 14,785

Seems like there is still quite a difference. So let’s see what it would take to bring the car to Canada…

The US price of $14,785 only includes 2/24,000 miles warranty. So we’re going to add $1,500 to make it 4/50,000 miles.

It also doesn’t include 6.1% duty, so add $900.00

Then there’s the http://www.riv.ca fee of approx $200

You also need to pay Mercedes-Benz Canada $500 to get a ‘compliance letter’

Even though it’s a new car, you’ll need to pay about $200 for federal/provincial inspection

Conversion costs - the instrument cluster has to be replaced, to show kms. Estimated by a smart service rep at $900

These costs are based on 100% DIY on the importing. You should add about $100 more minimum for insurance and temporary permits.

That adds up to $4,300.00 in additional expenses. (I am leaving GST/PST/HST out of the equation.)

Your US import smart would cost $14,785 in USD, plus $4,300 CAD. Treating the USD at par means you would be paying $19,085 - or $835 more than in Canada.

But wait! You didn’t forget about the $2,000 ecoRebate did you? The 2008 gasoline smart just squeaks in for the full $2,000 federal rebate with a combined city/hwy consumption of 5.4 L/100kms. Now you are $2,835 to the bad, plus a lot of extra legwork. Nevermind you have an imported car that will always be worth 10% less simply because it is imported.

Not only that, but it’s not fair to compare our $1.01 exchange rate of today - you need to go back to $0.90 or so IMO, when the pricing would have been determined… and with that in mind, the $19,035 would really be $21,150… nearly $3,000 more than the car is priced in CAD, even before you consider the $2,000 ecoRebate.

Even if you just want to make a comparison minus all of the import related expenses, $14,785 USD plus $1,500 to extend the warranty come out to $18,095 with a 0.90 exchange rate. More or less the exact same price. The truth is, the car is made in France, and what you really need to know is that in Europe, after subtracting out the VAT, the same car would cost roughly $17,250 at todays exchange rate. And they don’t all get 4 year warranties either.

I contend we aren’t getting a raw deal - the actual CAD pricing is lower than most expected, and the equipment list is bigger than most expected… and with all things considered, we are still getting a $2,000 ecoRebate on top of all of this.

Don’t hesitate to buy your new 2008 gasoline powered smart car in Canada. It’s a fair deal. And BTW - there is already a longer than 1 year waiting list to get a smart south of the border. Over 30,000 reservations have been made on an allotment of 25,000 cars. Hopefully there are no repeat incidents of smart tipping in the US.

BTW - if you are looking for a classic diesel powered smart - your best bet is to acquire one with low kms from the used market. Diesel smarts will not be sold in North America any longer, and all of the 10,000+ cars imported into Canada in the 2005 and 2006 model years have sold out.