US Auto & Truck

Should You Buy American or Foreign

When it comes to car buying, there are many who want to know, where the car was made, is it American or Foreign. People who want to buy only American are finding it more and more difficult to distinguish if their vehicle was truly made in America. At times they are even surprised to discover that the vehicle they thought was 'foreign' is primarily made in America.

The making of a vehicle can require numerous parts, which could be made all over the world. The vehicle then has to be assembled. And then there is the actual company or corporation who owns the car, one may ask where they are located?

Many vehicles manufactured in the USA are considered "foreign" while vehicles manufactured in Mexico and Canada could be called American or domestic. According to federal regulations, for a car to be domestic or American, it has to be made of at least 75% of domestic parts.  US manufacturers can send parts to Mexico or Canada where the cars are built but can promote them as domestic. Toyota, Honda, Nissan, BMW, Mercedes-Benz and Hyundai manufacture many cars in the USA, in American plants with American research facilities but are still considered foreign cars due to the parts being foreign. For example, the Ford Fusion is built in Mexico while the Toyota Camry is manufactured in Kentucky.

If this isn't confusing enough, we can look at companies we consider American and see that their holdings include foreign cars. For instance, General Motors owns a percentage of Saab, Suzuki and Isuzu motors. A.G. Ford owns Volvo, Land Rover, Aston Martin and Jaguar.

Maybe your desire to buy an American car isn't about being patriotic but due to the cost of repairs. If this is the case, speak to several mechanics about the brand name you are looking to purchase and ask whether they have a good reputation and whether they are expensive to repair.

In the past, many didn't care about the cost of repairs as they felt foreign cars were better built and lasted longer. Now, even those lines are becoming blurred as Americans are seeing domestic cars becoming more and more reliable.  Auto industry analysts are even stating that the performance of American-made cars is now very close to those made in Japan and even Europe. Because the perception is still there, foreign cars still have the advantage in holding their resell value.

Gas efficiency is another concern for those seeking to buy American verses foreign. While foreign vehicles have typically held the market for being the most fuel efficient, American models are starting to catch up.

Last are safety features. There are those who don't care where their vehicle is made as long as it has great safety ratings. While Volvo has held the record for safety, American automakers are starting to recognize the value of safety to auto buyers and are beginning to promote and step up their safety features as well.

Will it continue to be advantageous to buy domestic over foreign? It is hard to tell, it could depend all on what it is you're seeking.