Importing Car into Canada from US

goodcarma7 · July 2007

Just wondering about those who bought new....Did you finance through the American dealer, or pay cash. Wanting to buy a Honda Civic Si Sedan but can't put down that much all at once. Any thoughts?

patns · July 2007

I am having no luck finding a toyota dealer in Montana which will deal with Canadians. I live in Alberta but I am on the east coast in the summers. Does anyone know of Toyota dealership which will sell to Canadians in Michigan or New England?
Thanks,

Pat

smogil · July 2007

From everyone I've talked to, US dealers will only finance the car for US residents. I'm pretty sure cash is your only option. Be careful with Honda though, as they claim their warranty will not transfer to Canada. Some people apparantly have a different opinion, but that's what Honda states.

netdog · July 2007

If you are willing to finance at prime then consider taking out a secured line-of-credit such as a home equity loc from your finance institution and then pay cash for the vehicle. This gets you a better rate than a car loan and is very convenient. A non-secured line-of-credit will not get you the same rates but is a reasonable alternative.

goodcarma7 · July 2007

Thanks for your insight. There's a lot to consider, I thought this was going to be easy, little did I know.......

bankone · July 2007

I called Toyota Canada yesterday. They honor manufacturer's waranty in Canada

bankone · July 2007

Does anybody ever import a Toyota or Lexus SUV to Ontario? What details we need to pay attention to? Thanks.

milem · July 2007

Hello, after reading a lot of the posts on this forum I still wonder about the insurance...

I'm planning to buy my car when I'll be on my vacation for one week in the US. I wanted to buy the car at the beginning of my vacation to be sure everything was in order and to respect the "72 hours delay prior US customs...".

After contacting my insurance company, they told me they couldn't insure me more that 4 days in the US. I had asked for one week but it was refused, so I asked for at least 4 days to comply with the custom delay. They told me that they couldn't insure me longer in the US because their company only have provincial charter ?.

For different reasons, I still would prefer doing all the paperwork with the dealer at the beginning of my vacation...

So my questions are:

1-What do you think of their explanation for the maximum 4 days insurance in the US ?

2-Is it possible to be insured as a new owner of a car staying more than 4 days in the US ?

Hope I was clear, anxious to receive your precious help !

wooha2000 · July 2007

1-What do you think of their explanation for the maximum 4 days insurance in the US ?
find a different agent as I was in the US and had the car insured for 2 weeks.

2-Is it possible to be insured as a new owner of a car staying more than 4 days in the US ?
Yes, once you get the VIN number you can insure the vehicle. I insured my car 2 days before leaving to pick up the car in LV and then vacationed for 10 day and drove back to Canada. I had a temp DMV tag from the dealer for 15 days so I could drive car back to canada and get it inspected and registared.

milem · July 2007

Hello,
Your solution seems interesting !

Can you suggest the insurance company that accepted to insure you. It would be easier to contact them knowing they have done that before (canandian resident, american car, temp DMV, etc...)

Did you have to you contact them before leaving Canada, to have a quote and to be sure there would be no problems ?

Thanks !

diigii · July 2007

I've been reading this forum for the past few days now. I'm in the process also of getting a car in the US. I just hit a snag today about the insurance coverage. I called my insurance provider to inquire about coverage for the new car when it'll be driven off the dealer's lot and back to Canada. I was told that they won't insure the car because it's from the US. Only when it passed all federal and provincial safety inspections that they will insure it. So now, I'm lost as to where I will get coverage for the car. I read about the ICBC binder coverage but that is in BC. I'm in Toronto. Anyone here who had the same problem and found a way to insure the car who can assist/advice??? Thanks very much. Alas, our voices are getting louder and louder to all these local dealers who are just so ripping us off.

subahonda · July 2007

You need a different insurance company that won't give you this nonsense. Many US insurance companies have Canadian operations and will have no problem. I like State Farm - the biggest US company - and with offices all over Canada. You deal with a local agent. Send me a mailbox note if you need a suggestion. You have to have a clean driving record. I had no problem with insurance - they gave me 30 days. By the way, the car is inspected and licensed for the state in which you buy it, so the claim that it has to be licensed elsewhere makes no sense.

hbs · July 2007

I ran into the same problem with my previous insurance company Motors Insurance. If you read the Auto Insurance Policy (think it is section 2.1) the new vehicle is covered as a replacement coverage for 14 days. If you persist and talk to the underwriter or ombudsman they probably would insure you.

I ended up switching to State Farm and they are able to provide coverage. BelAirDirect also can provide the coverage if you pick up the car but not having it shipped.

You need to switch your existing policy to them before they can insure you. For State farm they might be able to do it for a new policy as they have agents in US that can provide US insurance.

tolan · July 2007

The Canadian Import website advises that to import a Bentley from the USA, you need to make a modification to the bumpers and that the work had to be done by a registered Canadian Bentley dealer. I called the Bentley dealer in Vancouver to find out what needed to be done and how much. They advised me that a small bracket neede to be added to the rear bumper. I asked how much and they replied $25,000.00. I suggested that this was a bit outrageous to which they replied...hey thats our policy because we don't want people bringing in cars from the US. Surely there must be something wrong with this. Anybody have any ideas?

smogil · July 2007

They play dirty games. I don't know anything about Bentley's, but I would think that non-Bentley shops would be able to do the same. I would call other garages specializing in these cars, or if that doesn't work, try the NAATA (http://www.naata.org/). They have a directory of importing dealers/brokers, perhaps one of them could either help you find someone to do the modification or help you with the entire process.

netdog · July 2007

Any chance that you can get the work done by an authorized US Bentley Dealer as they would be far less motivated to charge you these outrageous prices?

smogil · July 2007

I don't see why not. Perhaps you can even get the part here and bring it to them. I would just make sure you keep all records and receipts, as I believe you have to show the proof for your final inspection.

mok331 · July 2007

Hi, Is it true that when I get the temporaty tags from the state that I'm getting the vehicle from, I have to pay the state sales tax. Found a vehicle at a Dealer in Indiana, and I would have to pay 6%. Thanks.

kyfdx · July 2007

A temporary tag will get you out of Indiana without paying sales tax.

diigii · July 2007

Hi Subahonda! I just talked to my friend in Chicago and he said that dealers in Illinois are obligated to give you a 7-day insurance on the car so you can drive it off the lot. But I would still need insurance once I cross back to Ontario as the insurance covers only the continental USA. Thank you very much for your advice. I will post my experience once I finished licensing the car here in Ontario. hbs, thank you as well with your advice. I will call them to ask for quotes.

mok331 · July 2007

KYFDX.........thanks for the quick reply. Is it possible that I was talking to an uninformed dealer. He stated to me that regardless of what type of plate (tag) that I get that they have to charge and remit the 6% state sales tax. Does he just not know what he's talking about?

kyfdx · July 2007

That would be my guess... I've never bought a car in Indiana, but I only live about 20 miles from the state line, and I know that if I buy a car there, I pay taxes in my own state.

Uninformed... is probably correct.. I'd check it with another dealer, though.

jlawrence01 · July 2007

I've never bought a car in Indiana, but I only live about 20 miles from the state line, and I know that if I buy a car there, I pay taxes in my own state.

That is the way it works in Ohio (and every other state I have lived in). Also, the sales tax is based on the COUNTY of residence, not the county of purchase.

subahonda · July 2007

Every state and province collects the tax when the car receives its permanent license, otherwise there is double taxation. If this were not so, Oregon and New Hampshire, with no sales tax, would be the only places where people would buy cars.

bankone · July 2007

Please PM me. Thanks. My e-mail: laohd2005@yahoo.com

kyfdx · July 2007

There are states where the dealer has to collect the tax, no matter where you live... California is one of those... If you are from out of state, and buy from a California dealer, the only way to avoid the tax is to have the car shipped to you, or have the dealer drive it across the state line and deliver it to you out-of-state.

I'm pretty sure Indiana isn't that way, though..

smogil · July 2007

Anyone dealt with New York before? I'm having a similar issue. The dealer asked me whether I can give them a New York address to register the car to, so it would be easier to charge taxes and make up plates. Obviously, I said.. no way! I tried to explain it to them, but they didn't seem to quite get it. Their finance department is now mulling it over and will hopefully figure it out.

Anyone know if perhaps there's a website or source of information on this that I can direct them to? It would just make this so much easier.

wooha2000 · July 2007

I just tried to purchase another Toyota from the same person I purchased my first one and I am now told that they cannot sell to Canadians anymore. Toyota USA told them not to, I think this is true because another dealer in a different state who was selling lots of Toyota's to Canadians said exactly the same thing.

does anyone else know a dealer still selling to Canadians?

wooha2000 · July 2007

I am with ING and yes you should contact them and get a quote first to ensure that you have no issues. I don't deal with ING directly and use an agent who said it was no issue as I already had insurance with them.

wooha2000 · July 2007

AZ is the same also, I spoke to someone in the AZ tax dept and was informed they have no reciprocity with Canada (don't know about US states)for taxes and must collect them.

If you can purchase in Montana, I believe there is no State tax.

netdog · July 2007

State taxes do apply based on the state where the vehicle is to be registered as other posters have indicated. However, I have discovered that many states have reciprocal inter-state agreements for collecting the tax at point-of-sale, which is subsequently credited when the vehicle is ultimately registered out-of-state. The amount collected is based on the tax rate of the state where the vehicle will be registered.

Michigan operates this way and the only way for you to really dodge this tax (if you plan to register the vehicle in Canada) is to give them a US address in one of the no-tax states (Alaska, Delaware, Montana, New Hampshire, Oregon, or New Mexico), or in one of the non-reciprocal states (Arkansas, DC, Maryland, Mississippi, Nebraska, North Carolina, Oklahoma, South Dakota and West Virginia). Barring that, you can also give them an address in one of the low-tax states (Alabama, Colorado, Virginia) which are all between 2-3%.

The caveat is that some Michigan dealers are claiming that if you give them an out-of-state address, they cannot offer you all of the available rebates but this sounds like hog-wash to me. I already checked with Toyota US for example, and they have no such restrictions on their rebates and the amount of the rebate is based on the dealer's location not where the vehicle is to be registered.

Another important thing to note is that some states (the non-reciprocal states I mentioned earlier) impose a 'use' tax at the time of registration, regardless of whether or not the dealer collected taxes out-of-state. Should'nt be an issue unless you actually plan to register the vehicle in one of those states.

I could not find similar information on taxes in NY but I believe my experiences in Michigan (and previously in Maryland) might give you some insight on how some states (possibly including NY) operate.

Please post what you find out on NY's out-of-state tax policies.

On another note, I also contacted the Ontario DMV and confirmed that there are no reciprocal agreements between Ontario and any of the US states for collecting taxes on vehicles but the agent suggested that we may be able to apply for a non-resident tax refund from the state that collected the tax. Anyone know if that is possible and how?

netdog · July 2007

I plan to purchase a new Sienna in the states from a dealer who insists that I must title and register it through him in Michigan. Even with the state taxes, I figure that I'll be saving roughly $6-8K over buying it here.

However, if I title it in the states (even for just one day) I am concerned that the import and registration process will be a bit more complex (since this would now be treated as title transfer) and the taxes a bit higher (since they may use red book instead of bill of sale to calculate GST/PST). Can anyone who's gone through this provide some insight?

Thanx.

wooha2000 · July 2007

Hi,

Has anyone purchased a new BMW from a a dealer? If so, can you provide me with dealership name. I want to import to Canada. i am in Alberta, so somewhere in the West is preferable.

Thanks.

tjiang · July 2007

You may have to pay extra tax because most of them are made in Germany.is it still worth?

smogil · July 2007

For cars made in Germany (or any other country outside of Canada, US and Mexico), there's a duty of 6.1%.

wooha2000 · July 2007

Z4 and X5 are made in the USA. Others are Germany and you would then have to pay duty. Yes it is depending on what you buy. I calculated still saving ~8k.

tjiang · July 2007

That is good size saving, what about used BMW? Is 6.1% duty still effect on those cars too? what I heard is the Bimmers from the states don't have those 4 years free maitainence services carried over.What tough choice to make. I guess three-four years old ones would be good choices. Maximum your savings

maryannem · July 2007

I sell vehicles in Maine. We do this a lot. When you buy the car you get a temp 14 day plate and are not required to pay any taxes. Wed express mail the title to the border where it waits for 72 hours and then we send the car to our borders free of charge. We have had some New York customers in the same situation and we did everything for them and then put the car on a car carrier for approx $300.00 and have it sent to the New York Canada borders. This still saves lots of money because of no taxes.

maryannem · July 2007

Do some serious checking regarding state tax. I live in Maine close to the canadian border and I sell cars. If you can produce a non Maine license we will give you a 14 day plate and will not require you to pay taxes.

kerusso · July 2007

Every State is different. In Florida if you have buy a vehicle and have it shipped you do not pay State tax but if you get the free temporary tags and drive the vehicle home then you must pay the State tax. Possibly other States are similar??? I know that sounds weird but I do not make the rules.

kerusso · July 2007

That does not sound right. I would go visit a broker that sells multiple lines of insurance. Wawaneesa insured my vehicle when I drove back from the states without any hassles!

wooha2000 · July 2007

Yes, does matter if it is 3 years old if it was made outside of N.A then you pay duties. Lots of people purchase BMW used from the states and save most likely 5k to 10k. the biggest thing to worry about buying used is who drove it. It is a BMW and they could have drove the crap out of it like any other sports cars.

hybrid10 · July 2007

So far I have had a fairly consistent story that they can sell to Canadians with a US address (in a no tax state would be ideal). Here is an explanation from a Seattle, WA dealer of the rules:

"Here is the way the residency rules work:

Toyota does not allow us to sell a New Toyota to Non-US residences.
There is no restriction on the Nationality of the person to whom we
sell, nor does the residence need to be the person's primary residence.
We simply must be able to show Toyota (if we were audited by them) that
sale documents were for a United States address.

There are no such restrictions on the sale of Pre-Owned Toyotas or
retired rental fleet vehicles.

If you have a US residence that we can use, then we can sell you a New
Toyota. Once the sale is complete, you are under no obligation to keep
your car in the US for any length of time.

If we use a US residence in the State of Washington, we will need to
charge Sales Tax (9.2% here in the Seattle area) and Washington State
license & registration fees (approx. $240 total).

If we are able to show the State of Washington evidence that you have a
residence in some other US state, then we are not obligated to collect
Sales Tax or registration fees - nor are we obligated to ensure that the
vehicle is taken to that state and registered. Accepted proofs of
residence would include fishing/hunting licenses, utility bills,
government documents to that address such as property tax assessment,
etc."

diigii · July 2007

Yeah, I am now looking to move to a different insurance provider.

Update on my purchase decision: A dealership in Buffalo gave me an offer last Saturday but the color is white. My color preference is precision gray. And I just had first-hand comparison on how Canadian salespeople are so rude and hard to haggle with. With this US dealership, I emailed Sat morning 10am and I got a reply within 10 mins and with an offer!!!! He's even knowledgeable of the export/import process that he'll be the actual guy who will have all the needed documents ready for you when you pick up the car. All you have to provide him is your preferred border crossing so he can fax it to that location. And yes, there is no sales tax charged when you buy in NY state.

netdog · July 2007

Can you PM me the Buffalo dealer's contact info at netdog999@hotmail.com?
Thanx.

smogil · July 2007

Yeah, I had the same experience. It's much more up-front in the US and the market seems a lot more transparent. I guess Buffalo is so close to the border that he probably gets tons of calls. Good luck! Let us know how it goes, I'm picking up my car from NYC in about 8 weeks.

edmhlo · July 2007

Has anyone recently purchased '07 Honda Pilot EXL from Buffalo and bring it back to Ontario? If so please share your experience and price paid.

patns · July 2007

maryannem;
What type of cars do you sell? I'm in Nova Scotia.

bankone · July 2007

Maryannem,

Do you sell new Toyota? I plan to buy a RAV4 or a 2008 Highlander.

netdog · July 2007

Careful about the 2008 Highlander. I don't think they've been approved for import yet.

Importing Car into Canada from US

Comments

Helpful Tools

Most popular vehicles