So you want to enter the gray market but are concerned about the imported car warranty? I’m here to tell you that your concern is valid because many buyers walk away from those kinds of deals. But only because they eventually discover that the car doesn’t come with an imported car warranty.
It wasn’t like this before. But manufacturers wanted to wipe out the gray market. So they decided to void warranties for imported cars to help their local dealers in each country. The good thing for other dealers is that their strategy has a loophole. Stick around to find out what it is.
To make things short… No. But almost ALL of them.
Most companies do not come with an imported car warranty. This is because, before, it was hella cheap to buy imported cars from dealers compared to their domestic counterparts. Voiding imported car warranties is their way of “punishing” dealers who take on these arbitrage opportunities.
Here are some manufacturers that void warranties when a vehicle is exported: Chrysler, Dodge, Jeep, Ram, Hyundai, Genesis, Honda Acura, Mitsubishi, Mercedes, Kia, and more.
Manufacturers void exported car warranties to protect domestic dealers. For example, there could be a very hard-to-find unit that a local franchise store cannot get any more of following standard allocation. However, Billy Joe in the gas station across the street has 10 of them because he knew a guy like me.
To discourage people from buying exported vehicles from Billy Joe, manufacturers void the warranty.
Manufacturers price vehicles based on what each international market will support. They cannot set these prices based on international currency exchange rates. The f/x markets are far too volatile and would result in massive swings.
Nothing illegal about this grey market arbitrage, but it causes the manufacturer a headache. So they penalize participants the only way they can, legally.
Of course, it’s better to know if the car you’re planning to sell has an imported warranty - than just hoping for the best.
Ask for the vehicle’s VIN and use a reliable VIN-searching tool.
Can-Am Warranty Lookup Tool: This tool will help determine if your vehicle has a limited warranty from Can-Am Dealer Services, which specializes in prev. Canadian vehicles. If your car does not have a Can-Am Limited Warranty attached, you will find a link to access our dealer portal.
Vininspect- A centralized database with the goal of preventing the resale of stolen vehicles and preventing fraud by providing users with up-to-date and accurate information about vehicles across the country.
BeenVerified - Discover accident reports maintained by trusted state agencies and automakers.
Driving-tests- A free lookup tool from Driving-tests
AutoDNA- Reports on the past owners and accidents of used cars imported from Europe and the United States.
Vindecoded- A database where you can see your vehicle’s engine specs, theft records, consumer complaints, and more
Good for you if you find out that an imported warranty covers the car.
But if it doesn’t have one, don’t worry because here’s a “loophole” that will allow you to sell prev Canadian profitably.
So far, only one company replaces voided limited warranties (voided because of being exported) at a very affordable price. This will allow dealers to get in on the arbitrage opportunity while still getting good revenue.
Can-Am Dealers Services created a replacement warranty that ports by VIN. It can be wholesaled dealer to dealer or auctioned 1000x. This warranty is active the minute the dealer purchases it.
The best thing about it is that it’s customer-friendly. The warranty doesn’t need to be sold or registered to the customer since it’s already included and attached to the VIN… just like the OEM… but better… no obstacles.
This product is a limited warranty, not a VSC (Vehicle Service Contract). It’s a 3/36-5/60 factory-type coverage product. It has no deductibles, roadside, rental, or other things we expect from an OEM Basic 3/36 and Powertrain 5/60. It’s as if the warranty wasn’t voided at all!
So if you’re a dealer who wants to make selling prev Canadian profitable, click here and become our partner dealer. Any registered dealer in Canada or the United States can participate.
Having an exported car warranty is a vital deal-maker for a customer. Selling a car without a limited warranty is like tossing a coin to make it stand sideways. A limited warranty will give your customer peace of mind and give you an edge in the wholesaling industry.
So, whether you want to sell a rare vehicle abroad or a cheaper car from overseas, not having an imported car warranty should not be a hindrance for you anymore - now that you know you have better options.