Quietly, one of the slowest steps in cross-border trade got a lot faster.
The old math
When a vehicle comes into the US from Canada, NHTSA can hold it for up to 30 days to confirm it meets US safety standards. It sits in a holding facility and can't be sold until it's released.
For most Canadian vehicles, that review is close to a formality. They're generally built to the same specs as US-market vehicles. If NHTSA reviews one early, it's released early.
The catch: early reviews almost never happened. Most vehicles sat the full 30 days.
End to end, from a Canadian lot through import to a US lot, that added up to roughly 40 days.
What changed
In April, NHTSA started reviewing vehicles much sooner under the same rule.
On the thousands of vehicles Signal has imported since May:
- 97% were released before the 30-day mark
- Since May, two-thirds were released in under a week
- Some were released the same day they started their hold
End to end, from a Canadian lot to a US lot, the full cycle has been cut roughly in half, from about 40 days to less than 20.
Why it matters
Forty days is a long time to carry a vehicle, and the market is always moving. Cut that in half and the whole trade looks different.
- Canadian sellers: it's easier than ever to maximize the value of trades or aged inventory.
- US buyers: Canadian inventory arrives fresher, on timing you can actually plan around.
What to do with it
Cross-border trade is closer than ever. Dealers who plan around a turn half as long on Canadian inventory will have an edge.
Want to see what's clearing the border this week?
