Domestics vs. Imports: Which One Should You Buy?

Domestics vs. Imports

According to analysts, the average person owns six cars in their lifetime. Keeping that golden nugget of research in mind, wherever you are on your six-car journey, it pays to make sure you’re going to be the proud owner of a winner and not get stuck with another lemon. When it comes to choosing a new car, there’s always the option of going with a domestic brand or an imported one. While both come with their fair share of pros and cons, it’s important to educate yourself about the difference between a foreign and domestic vehicle when buying a car. Here, we weigh in on the domestics vs. imports debate.

Domestics vs. Imports: The Difference

In today’s global economy, despite a pandemic looming over our heads, the line between what constitutes a fully “domestic” or “imported” vehicle has been blurred. The truth is, there’s no fully American-made vehicle today. But don’t take our word for it. According to a report that was released by the National Highway Traffic and Safety Administration, there are no 100% US-made vehicles available in the market today.

That’s because of supply chains moving freely across borders and vehicles containing at least some parts that are sourced from elsewhere. So, do you abandon vehicles that come with the “Made in America” label? Of course not.

However, there are some pros and cons that you need to be aware of while choosing between domestic and imported vehicles.

Pros and Cons of Domestic Cars

According to the annual Made in America Auto Index, there are 544 car and truck models that you can choose from in the domestic variety. That’s a lot to choose from. This means you need to make sure you know enough about domestic vehicles so that you can make a more informed decision. The following are some of the advantages and disadvantages of purchasing a domestic vehicle:

Pros

Luxury that’s Not Terribly Expensive

American vehicles offer the best in quality, fuel efficiency, and are priced at a fairly decent rate, which makes them a truly democratic option. According to the Kelley Blue Book, American cars are far better at offering high-end value at a lowered price when compared with imported vehicles. This sort of accessible luxury is apparent in American brands such as Chrysler, Chevrolet, Ford, and so on.

What’s more, you can get an American car that’s fitted with all of the latest features, which are found in expensive brands such as Infiniti or Acura. This means you get the most bang for your buck when you go American.

Better Performing SUVs

We get it, a Ford Fiesta ST is just too cramped, and Toyota has no power (or style). If you’re in the market for an SUV, then you will be spoilt for choice. The trucks and SUVs niche is covered by the big three auto giants – Ford, Fiat-Chrysler, and GM. Between these three, you get a plethora of options, from light trucks for the wife to SUVs for those who want to make a statement. Going with a domestic brand when choosing a truck or SUV is the smart choice, especially since 9 out of the 11 top-selling pickups of 2018 were American, according to KBB.

Cheaper Parts

You’ll never know when your wheels are going to break down – but one thing’s for sure, you’ll be glad you purchased your car from a domestic brand when it does. The parts of American-made vehicles are comparatively cheaper and are easier to replace as compared to imported vehicles. This means, if your car breaks down, and is need of a part replacement, it’ll be less of a headache if your car was American.

Cons

US Vehicles are Growing Less Reliable

It’s best to address the elephant in the room instead of making multiple rounds around the block. The truth is, American-made vehicles are getting less reliable, which is easy to see in the Consumer Reports Annual Auto Survey which shows American cars struggling in terms of performance and owner satisfaction, especially if you want to compare them to their Japanese counterparts. Moving forward, reliability remains an issue with domestically made vehicles.

US Brands are Shifting from Compact Sedans to SUVs

The US auto industry is experiencing a shift from the production of traditional sedans, the quintessential family car, to much larger trucks and SUVs. In fact, by 2022, almost 84% of GM’s sales will come from trucks and SUVs. General Motors is not the only brand that’s made the shift from sedans to SUVs; 90% of Ford’s domestic sales and 97% of Fiat-Chrysler will compromise of trucks and SUVs. In other words, for those who are looking for a nice, compact sedan – your options from domestic brands are shrinking.

Pros and Cons of Imported Cars

Let’s be honest, if you could swap an American nameplate for a BMW blue and white logo, you probably would. European (and even many Japanese) cars are sleek, sporty, and are definitely non-Dodge-y. Plus, they handle like a charm. But even imported vehicles come with their fair share of pros and cons that you need to know of.

Pros

Consists of Some of the Top-Ranked Vehicles in the World

Ah, European cars. They’re like listening to a platinum album; you simply can’t go wrong, whether you go with a Lexus, Audi, Genesis, Porsche, and even the Subaru. All of these brands have something for everybody. Even the handling and braking all make driving imported cars feel tactical.

Better Performing SUVs

Higher Reliability

It is no surprise that European cars and Japanese cars consistently score higher on the reliability index. In fact, Japanese vehicles have garnered a reputation for being reliable, which is why according to 2019 KBB rankings, some of the vehicles with the highest resale value were from Japanese manufacturers.

Asian Vehicles are Cheaper

While many domestic vehicle brands can still boast of having a reasonable price tag, there are quite a few Asian options that can give them a run for their money. These include Honda, Toyota, Nissan, and Hyundai, all of which have offerings that can be yours for $10,000 or lower.

Cons

Difficult to Replace the Parts of Imported Cars

At the top of the list of the disadvantages of buying imported vehicles is that, like the vehicle, the parts are also made overseas. This can make it harder to procure and also bumps up the price. This is an important factor for many potential car owners to consider since the global trade war has caused tariffs to increase on imported vehicles and their spare parts.

Not All Imported Cars are Alike

While both European and Japanese car manufacturers have some great offerings, not all are created equal. While it is true that imported cars do make it to the top of the Consumer Reports rankings in terms of reliability and efficiency, they also make up the majority of those at the bottom. In other words, it’s best to do your homework before selecting an imported vehicle over a domestic one.

Ending Note

For many folks, having a car means freedom. Whatever stage of life you’re in, rest assured there’s a car out there for you that’s a mixture of the must-haves and would-be-nice features (that are preferably not too expensive). Knowing the difference between domestic and imported vehicles will ensure that you are able to make a more informed decision when buying a car. So, which side of the domestics vs. imports debate are you on?

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