Domestic sticker shock absorber

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This article was published 01/04/2025 (583 days ago), so information in it may no longer be current.

“Definitely frustrating” and “nearly impossible” are how Brady Jonasson and Savannah Blandford describe the first six months they spent shopping for a used vehicle last year.

The Gimli-based newlyweds searched for something reliable with low mileage and no rust selling for under $20,000, but nothing met those requirements.

In July, the couple contacted JDM Rush Imports Inc. in Winnipeg, which specializes in importing vehicles from the Japanese domestic market. Less than four months later, they were the proud owners of a 2008 Honda CR-V that had just 2,500 kilometres on the odometer.

The total price, including shipping and the company’s fee, was just over $16,000.

“I think people are scared of the process of importing vehicles, so they settle for paying more,” Jonasson said. “But the time it takes is way more worth it, especially for the price and crazy low mileage you can get.”

Given the cost of used vehicles in Canada and potential U.S. tariffs impacting the auto industry, JDM Rush Imports founder Adam Duguay wonders if more people will follow in Jonasson’s and Blandford’s footsteps.

When Duguay started the company in January 2022, he catered largely to Japanese domestic market enthusiasts. But in recent months, he’s observed an increase in inquiries from Canadians looking to import Japanese vehicles as a way to avoid domestic sticker shock and the impact of any tariffs that might come into effect Wednesday.

Importing from Japan has become more than just a niche market, according to Duguay. For some, it’s one of the few affordable paths to vehicle ownership.

“I’ve noticeably seen an uptick in calls from people looking for daily drivers that just can’t seem to find a car they can afford,” he said. “I would say 30 to 40 per cent more calls have been like that … and I ask every single customer (why they want to import).”

Prior to starting his company, Duguay was in the market for a solid used car himself — something reliable and well-priced. But everything he looked at was priced only a few thousand dollars less than brand-new models.

After Duguay discovered the Japanese domestic market, he was drawn in by the quality, variety and pricing. The cars are well-maintained thanks to Japan’s rigorous inspection system and most have much lower mileage than vehicles on a Canadian lot.

He started his company to make importing Japanese vehicles to Canada easy, affordable and exciting for clients. Duguay walks clients through the process, from sourcing a car to handling the paperwork, shipping, customs and delivery.

“I love cars (and) I love working with enthusiasts, but I also started it to help people — to get them into cars that are reasonably priced and high quality, especially in our economic climate right now,” he said.

According to Autotrader.ca’s December 2024 price index, the average price for a new car ended the year at $65,219 — down three per cent year over year. Meanwhile, the average price for a used car was $34,445, down 6.6 per cent from December 2023.

The industry started to normalize in 2024 following the effects of the COVID-19 pandemic, according to Baris Akyurek, vice-president of insights and intelligence at Autotrader.ca. While Akyurek could not speak to the demand for Japanese imports by Canadian consumers, he did offer observations about used car prices in Canada.

Supply chain issues during the pandemic led to fewer new cars available in the market, resulting in soaring prices. Consumers flocked to the used market, driving prices upward; in 2021 alone, used car prices increased by 21.7 per cent.

Tariffs threaten to recreate this dynamic, Akyurek said.

Autotrader.ca ran a survey from Feb. 7-13, targeting consumers aged 19 and over who plan to buy a vehicle in the next 12 months. Almost half (47 per cent) of the 645 respondents agreed potential trade tariffs have affected their vehicle purchasing decisions. One third said they would switch from buying a new to a used vehicle.

That aligns with the increase in interest in used vehicles that Autotrader.ca has noted in the last month.

“Based on what we are seeing and what we are hearing in the market, obviously consumers are rushing to buy used vehicles with the expectation there will be price increases,” Akyurek said.

He advises consumers who are looking for a used car right now to buy as soon as possible, assuming they have the financial means and know what they need. “If you find the right car at the right price, pull the trigger,” he said.

For Jonasson and Blandford, pulling the trigger meant importing a vehicle from Japan — and they couldn’t be happier.

“It was worth every penny I spent and every minute I spent waiting for it,” Blandford said.

aaron.epp@freepress.mb.ca