Imported vs. Domestic – Which One to Go For

For years, many people have questioned it, and many think they found the answers. I am here to tell you today, I have the information you need that will help you make your choice. Many houses across America really only have room for one vehicle on the driveway, which leaves a lot of people scratching their heads, wondering if they made the right decision in the end. 

First, it is worth noting that the difference between domestic and imported cars really has nothing to do with the countries they come from. Some influences are cultural based,. Some influences are market-based. But any way you look at it, the whole picture cannot be seen through these one-off lenses. One thing you do notice with domestic cars? They are bigger than imported ones and more luxurious. With imported cars, they tend to be safer, meet a higher quality standard, tend to visually look nicer, and surprisingly have a better fuel efficiency. 

What is a Domestic Car?

By definition, a domestic car is one that is made in America or by an American-based car manufacturer. They have their headquarters located on USA soil and are widely known as American car companies. But it wasn’t always like this. When trying to pinpoint specific domestic cars, it was easy in the old days, as the Ford Model T was built in Michigan, Pierce-Arrow operated out of a plant located in New York, and Studebaker assembled cars in Indiana. 

It was only after World War 1 that the definition began to get a bit blurred. American manufacturers took advantage of expanding their territory, when they started to establish branches across Canada. This allowed them to take advantage of the lower tariff costs on cars built there and shipped throughout the British Empire. It wasn’t until 1965 that Canada and the United States formed the Auto Pact. It was a trade agreement that allowed for parts and cars from one country, to be shipped to the other tariff free, which is where the definition began to get blurred. 

Domestic Car Companies: 

• Buick
• Cadillac 
• Chevrolet
• GMC 
• Chrysler
• Dodge 
• Jeep 
• RAM 
• Ford 
• Lincoln 

Fun fact: There are more than 90 other domestic car companies, however, a lot of them are only available to a certain demographic and are not commercially available for sale to the general public. Others are specialty brands that only make one single model of vehicle. The list above are the 10 that we know of. 

Additional Benefits of Domestic Cars:

• You are supporting locally established businesses 
• Can’t be beat! 
  • 7 of the top 10 selling trucks in America are American made

What is an Import Car?

An import car on the other hand are vehicles that were made for a domestic market other than the United States. Essentially, they are cars brought into the United States from overseas. Once there, they are modified to comply with US safety and emissions standards. They don’t necessarily have to come from Japan only to be considered an import car. This is one area where many people are under the wrong impression of what an import car really is. 

Driving in a car that has the drivers seat on the right side, does not necessarily mean that the car is imported. I will get into this a little later, so keep reading to find out. Keep in mind too, that many vehicles can be modified to the driver’s needs within the country of where they live, which may include switching the drivers side to the right or adding the brake pedal to the shifter. 

Some of the big well-known import companies: 

• Honda 
• Nissan 
• Toyota 
• Hyundai 
• BMW 
• Audi 
• Porsche 
• Subaru 
• VW (Volkswagen) 
• Mercedes-Benz 

If the car company’s headquarters are located outside of America and majority of their operations are done elsewhere, it is an import car. 

Did you know: Cars that are not made in Canada can legally be imported into the country once they are 15 years or older? 

Grey Imports – What’s the Issue?

First, let’s start with the definition. A grey import is a new or used vehicle (including motorcycles) that have been imported through channels other than the makers official distribution system into another country.

With grey imports a lot of things become really sketchy and a couple of problems are worth noting and keeping in mind. Let’s start with the documents first. Grey importers are getting good at making the necessary documents for the vehicles look legitimate, when in fact they aren’t. But tell me something, if you really didn’t have anything to hide, why go through all this trouble to do that? 

Next is the issue with the navigation systems. Grey imports come preprogrammed with region coded navigation systems, which generally can’t be updated with the usual chip change. This means, if you drive this car other than the country that you imported it from, you will essentially have a useless navigation system. It is worth noting too that issues with radio frequencies may arise. 

Grey imports usually will emit certain information about the vehicle as well, such as crash/accident history and repairs done to the vehicle; specifically if aftermarket or OEM (Original Equipment Manufacturer) parts were used. All in all, grey imports require a LOT of research before sealing the deal – and we mean both on the car and the importers.  

One really important thing to mention is America isn’t part of any safety or emissions standards, having current standards determined by federal groups in America. This means a car can be considered safe to use in Japan and be deemed unsafe and not street legal in America. 

One really relevant example of this is seen through the Nissan Skyline of the 90s. An independent company performed the necessary safety tests and reported their findings to the NHTSA (National Highway Traffic Safety Administration) – America’s safety group. The organization signed off on the car which allowed for Skylines to be imported and driven in America. The problem? The safety tests weren’t complete and it was discovered that some lying happened on the company’s behalf. The American customers that wanted to buy them had to go through a third party which had the cars shipped over. This lasted over a ten year span before the NHTSA found out and charged the owner of the third party company. That means if you really want to drive a JDM car, you have to obtain it through a grey import from Japan. 

Fun Fact: Japan taxes cars at a higher rate once they become three years old, making second hand cars cheaper. This makes dealers from other countries enticed to purchase them (with the purpose of resale) so they can make a bigger profit even with factoring in the cars are being shipped across the ocean. 

Are Grey Imports Worth It?

In hindsight, if you are a gear head (a car lover) then yes. But other than this, they might not be considered to this high standard. Grey imports seem to be popular within a niche – if you like collectible cars and if you want a car that is a conversation starter. 

But let me break it down a little further for you. Take the Miata for example – one that will be referred to a couple of times within this blog. On paper, this car is identical – no difference between the one made for Japan and the one made for America. One important thing to keep in mind, Japan has a model called the Roadster, which isn’t available here, making things a little confusing. Bottom line: if a car has the same make, model, and trim, the Japanese version is more or less identical to the American version. 

This is a big indicator that Grey Imports are not worth it. Following through with the same example, you will essentially be working with a company that isn’t Mazda (the maker of the Miata) when you have your Roadster shipped from overseas. This is where the potential for scams can occur. 

Plus, not to mention, the whole importing process is NOT easy. It is lengthy, stressful, costly, and very confusing. Yes, you can get help from a third party, but remember, the responsibility is still solely on you. And think about it this way, buying a grey imports car doesn’t really guarantee you anything. 

No test drives, no sitting in the vehicle to get a feel for it, and no talking face to face with someone about anything. There is no location where you can meet to do that! Being able to do the full inspection of the vehicle is really important. You may be able to see pictures, and yes pictures do tell a thousand words, but the whole experience will definitely not be the same. There’s no possible way to test drive a vehicle that isn’t even in the same country as you. 

And as if you needed another reason to stay away from grey imports, I have another one! That’s right, it’s warranty. Since the car is crossing borders and even country lines in some cases, warranty kind of just falls off and gets lost along the way. Mazda (still sticking with that example) can not guarantee anything with shipping and this is why the warranty is never guaranteed once the car comes into your possession. Good luck if when you get it, something goes wrong.

What About Parallel Imports?

Let’s do a mini dive into the ins and outs of it and potential problems that could occur. A parallel import by definition is a scenario that involves an authorized distributorship selling new cars on behalf of the manufacturers themselves. Now, while this method may save you the overhead costs you would have to pay at the dealership, it isn’t all that it’s made out to be. 

When looking to purchase a car through a parallel importer here are a few things to keep in mind: 

• The amount you will save after all fees are paid off and the car is on the road 
• Repair and warranty agreements – in writing 
• Ease of getting replacement parts 
• Wait time for the car’s availability 
• Ability to test drive 

Personally if I was advised of this before making the purchase, my mind would change and I would seriously reconsider going through with it. 

In recent years, purchases for parallel imports have been on the rise, and although this is a good thing, it brings across a very serious first issue: It makes it more difficult to tell the difference between the good guys and the bad guys. This is where things can get really blurred and people land themselves in trouble. 

Another really important issue with parallel imports? The fact that the importers themselves have the ability to close up shop whenever they feel like it. Whether it be for bankruptcy issues, a decline in recent sales, or just shutting down operations altogether. When this happens, you can kiss your import goodbye. There is no way to legally take them court (in case you were thinking about it) as they essentially didn’t do anything wrong in the eyes of the law. Surprisingly, parallel importation is legal in Canada. 

It goes without saying that another major issue with buying a parallel import car is the potential for fraudulent activity; i.e. credit card fraud, identity theft – which really exists as a potential risk any time you’re buying something online from websites you aren’t familiar with. 

Fun Fact: On average, there are approximately 120 new reported cheating cases yearly. Customers lose anywhere from $5000 to $30,000 which can amount to life-savings for some.  

My Opinion

Despite all the arguments made in this blog, I think some of you might be surprised with the one I choose. For those of you that know me, know that I have a love for sports cars and so I would choose Imported. It’s really fascinating to see the various types of cars that exist and put into perspective, you also get an insight into the origin economy of where the car is coming from. If that isn’t exciting enough for you, then I don’t know what is. 

With imports comes money and risks, two things that can deter away most people. For me, I would love to live out my dream, and if that means saving money and taking risks to do so, you best believe that’s what I am going to do. 

Final Thoughts

Why not weigh in with your opinion? We would love to hear from you! Leave a comment on this post or over on our socials. 

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