Importing Car into Canada from US

player86

Has anybody imported a vehicle with aftermarket wheels or oversize tires? Can this be a problem at the border with customs?

defrederick

Animagus, I've checked with Toyota and they will honor the warranty here. Also, it doesn't matter in what state you make your purchase, because as far as I know out of state residents don't pay state taxes anywhere.

Netdog, very interesting comment about Toyota allowing sales to Canadians. Can you please provide a source within Toyota who I could have my dealer(s) contact? This could open the floodgates!

Dan

defrederick

Anybody else watching the CAD/USD exchange rate? Ouch! My van just cost $1500 more today than two days ago!

Is it possible to lock in with XE Trade without having a confirmed purchase? I've been wanting to do that ever since the USD was at 1.03 three weeks ago.

thecannyscot

Hi Dhermil,

Can you explain how you can get title to a vehicle without paying state taxes in the US? A toyota dealer in the US told me I had to register it in some state in order for them to release the vehicle. Does this make sense???

Thanks

netdog

I found out the hard way that some states have inter-state agreements to collect each other's state taxes at point-of-sale for out-of-state sales. This is a problem if the dealer will only sell you the vehicle if you provide a US address for registration as is the case for most Toyota dealers. Some states have no state taxes so if you are in this boat consider providing a US address from one of those states. Check one of my earlier posts for details.

I have not yet made contact with the dealer re: Toyota selling to canadians. I will post an update as soon as I do.

tomtak

There was an article (http://www.canada.com/nationalpost/story.html?id=16c0edec-1bb3-489c-b36e-3c870c- c2722e&p=1) in National Post on July 21 about a dealership near Buffalo, Superior Auto Sales, that sells new and used cars to Canadians. Maybe they can help some of you.
There is also this thread (widow1, "Volkswagen TDI Models: Prices Paid & Buying Experience" #118, 16 Sep 2005 6:57 am), message #118, this guy tried to bring a car from Canada when exchange rates were different, using the same dealer. Interesting story, shows how hard it might be, how much crap a buyer has to go through.

maryannem

I don't know how your state that you are working with works but in Maine you do not pay sales tax if you have a valid license else where and believe that is the same in many other states

defrederick

In Nevada, you just need to have out of state ID and declare that you will pay taxes where you register the vehicle. They don't collect other states' taxes.

dhermil

We do not collect any State tax for vehicles delivered in Canada. The process is quite simple and convenient.

Here are the basics:

1. Bill of Sale in your name
2. Title in your name
3. Recall Letter stating the vehicle has no recalls
4. We arrange to clear US customs
5. We provide all the paperwork to you in Canada and you take it to the Canadian tax authorities.

Let me know if you need any further information. We have delivered a large number of vehicles to Canadian citizens in recent months.

There are more details at www.underdealerinvoice.com

madeuce

The price difference between US and Canadian cars (well, at least the one I'm interested in) is too much to bear any longer. I am going to bite the bullet and purchase a new 2008 Chevrolet Corvette Coupe in the US and import it into Canada.

I have been told that, since the car is new and has less than 10,000 miles on it, the warranty will not be honored in Canada.

What are people doing in situations like this? It seems that I need a replacement warranty (not an extended warranty), but I have no idea where to get one, or if they even exist? Is it possible to purchase a warranty like this? If so, can anyone offer pointers to reputable providers? Other ideas/suggestions welcome.

Thanks very much,
MaDeuce

elle11

After reading the posts here I AM going through with the import. In Ottawa, to get Lexus IS250 awd with navigation you can only get it in 1 luxury package --- which costs a whopping $11,800. In the U.S. I can get the IS250 awd with nav. in a package that is only $4,000! So basically when all is said and done and taxes are paid, I will own this car flat out for less than the 3 or 4 year lease payment in Canada. So that takes me from $62,000 Cdn to $41,000 Cdn when buying american.

Question... The Syracuse dealer first refused service to me. Then he said I would have to have an american address and have the car plated and insured in the states before exporting it out of Canada. Is this true???? I've heard of the address being a problem but I haven't read anything yet on getting New York plates and american insurance on the vehicle.
So I told him I have a Miami address which I do... (my ex's address) and he still said I can buy the car but must fax the deal papers to the DMV in Miami... to get plates and insurance.

Anyone know anything about this plating/DMV issue? RIV says nothing about this.

Thanks for reading

paul29

Can you tell me how this works for a used vehicle .thanks ? pejay_29@hotmail.com

a1b2c3

I have also been encountering similar difficulties. Lexus and Toyota dealers are requiring not only an address in the US but also titling and registration in the US. Even if you are willing to pay the state sales tax, that does not mean you will be able to register. I checked a number of states and proof of residency and in some cases a state driver's licence are pre-conditions to titling and registration of the vehicle.

A US-based intermediary would be a possible solution, but I'm not aware of anyone offering this service.

If anyone knows a way around this or of a Lexus or Toyota dealer that does not require US titling/registration, that would be quite helpful.

defrederick

The dealer I'm working with does require a copy of the U.S. driver's license for the title and registration. This is totally because of cross-border shopping. You gotta think that at the end of the day, one of the automakers would wake up and realize that they're losing a ton of potential sales by putting up these road blocks. The whole reason we were looking at Toyota in the first place was that the warranty was transferable, as opposed to the other major manufacturers.

At the end of the day, I think there are much better options if Toyota is taken off the table. The way the prices are now, I'd never buy a new or used Toyota in Canada, because future prices have to drop and resale prices will follow. Not only that, but this whole exercise has given me a bad case of Toyota-rash... :mad:

jmelo

does anyone know if you have to pay state taxes on a new vehicle thats being brought back to Canada and the address of the owner is in Canada

dhermil

You do not have to pay sales tax from a Michigan dealer if the car is delivered in Canada.

See www.underdealerinvoice.com for more info

kerusso

The majority of folks on this forum are going to say "NO, you do not pay any State tax" when purchasing a vehicle that is being brought back to Canada. But that is not necessarily true. For example if you buy a vehicle in Florida and drive it out with temporary tags you WILL pay state tax! But if you have the vehicle shipped then you will not pay any state tax. I know this because I bought and drove a vehicle out of Florida earlier this year and had to pay tax! Your best bet is to call the dealer in the state you are looking to buy from and ask them point blank if there will be any tax on your purchase if you are taking the vehicle back to Canada". Be aware that some States do not even have state tax. I am picking up a used truck out of South Dakota in 2 weeks and won't pay a penny in taxes.
Good Luck!

timmyepp

I have imported motorcycles before, so I know the process, I just want to know how I can drive a vehicle back to BC. It is pretty easy to throw a bike in the back of a truck, but I want to import a toyota tacoma and do not want the hassle of trailering it. Anybody know anything?

leftcoastauto

You need a US dealer plate. Prearrange interim insurance with ICBC. Then it's just a matter of driving it to the border crossing. 3 business days, and appropriate paperwork which you are no doubt familiar with.
I've driven from Cal on a dealer plate and also picked up a car off a carhauler in Seattle, that one originated in Florida, but the dealer provided me with a Virginia plate, likely to forestall any tax questions in Florida. The dealer I bought from in Califoria, asked me to draft a letter saying the car was being shipped out of state, to cover himself for not collecting tax. He then provided me with a dealer plate and off I drove.

bullit4

Hi! madeuce ive look around also with no luck finding a replacement warranty, with all of the poeples buying new cars and not having warranty on them, are you poeples just gambling nothing is going to happen?? what are you doing for warranty ,any help out their,thank.

hunker

Hi
I looking to purchase a Hyundai vera cruz but I live in Saskatoon Sk. Is there any arrangements I can make other than driving to Windsor to bring the vehicle across the border?
S.G.H.

animagus

I haven't used them yet, however check on uship.com and DSA (friends here in Canada have used them with great success). Before committing to having shipped to your door check on the closest point in USA to the border crossing nearest to you - it may be worthwhile to have it shipped within the US only, and to "meet" it there and drive it back (assuming the vehicle you intend to move is operational). If it is operational you will need a temp. transit license from the state you will drive to the Can. border with, and a Can. Transit license from the border to home or the nearest registration office. In both cases you will need to have insurance in place - not all insurance agencies will do that (and all will expect a copy of the bill of sale, title and registration (that gets tricky)).
Hope this helps.

sr123

you can fly to where ever your buying your car and drive it back just make sure your paper work gets to the border 3 working days before you do.It seems that each border crossing is a little different on what paper work they want. google RIV plan to get phone #s for each crossing so you send the proper paperwork and find out what hours there open.Dealers can sometimes ship the vehicle to the border for you.Good Luck sr123

thecannyscot

What do you mean by title. Say my brother-in-law who lives in a state with no sales tax, registers it etc in that state then resells it to me. What constitutes title for me. Is a bill of sale from him to me and him signing his registration documents over to me (as we do in canada) sufficient to constitute "Title"?

animagus

A title document is issued in the states - a bill of sale is only one piece of the required documentation. Insure that the title is free and clear of liens.

sr123

I donn't think you pay State Tax with a private sale.As for a title its the same as a canadian registration,make sure to fax the title(both sides)and be sure to have your name as a buyer and the sellers name some where on the title to the Border 72hrs working hours in advance.Good luck sr123

netdog

Although you don't pay state taxes on a private sale, you still pay GST at customs and possibly PST as well. I confirmed that PST is still payable in Ontario on imported private sales, perhaps other provinces are different.

Also, for those of you considering registering a new vehicle in the states through family or friends only to have them re-sell it back to you for export to canada, the vehicle will be considered a used vehicle for import purposes and the documentation you must provide is different than for new vehicles. You will need to provide the title as opposed to the certificate of origin and you will need to pay GST/PST based on the canadian red book value of your vehicle which is likely much higher than the price you actually paid for the vehicle. You also end up paying state taxes to have your friends/family register the vehicle. If you have family/friends in the states then it could be much cheaper and simpler for you to simply ask them to temporarily add your name to their phone or utility bill and use this as your proof of residency and then purchase the vehicle in your name from an out-of-state dealer. Most Toyota dealers will accept a canadian driver's licence when purchasing the vehicle - they just need a US address with proof of residency to complete the sale. You do NOT have to register the vehicle in that state after purchase, but you needn't get into that with the dealer.

farzee

elle11/ab1b2c3 : I am in a similar situation. Toyota dealers in I have talked to so far in/around Syracuse area ...still looking for one that doesn't care. I also have a US (IL) address which is valid too but since they would also need a US license it doesn't work out. If a dealer doesn't care, then the process is simply and you should be able to do a temp. registration (to avoid sales tax in US) using the insurance info (from Canada). I talked to DMV in NY about it, and they are cool with doing temp. registration using Canadian insurance information.
Its only the dealers that have issues! ....still looking, but if any one else finds an option, do share.

cobber569

I am attempting to import from Buffalo to Mississauga. My insurance agent stated that I can't insure the vehicle to get it across the boarder. Any suggestions?

bankone

I use Toyota RAV 4 as an example and calculate real saving for importing the vehicle from US vs buying locally. I found out that there is no saving if the exchange rate is at $0.86. Please see the following chart:

Buying from the US 6.10% 6% 8%
RAV 4 USD Exchange RIV Fee CAD Equiv Duty AC Tax GST PST Total
Base 4WD 23,738.00 0.86 206.70 27,602.33 1,683.74 100.00 1,763.16 2,350.89 33,706.82
Base 4WD 23,738.00 0.90 206.70 26,375.56 1,608.91 100.00 1,685.07 2,246.76 32,222.99
Base 4WD 23,738.00 0.92 206.70 25,802.17 1,573.93 100.00 1,648.57 2,198.09 31,529.46
Base 4WD 23,738.00 0.94 206.70 25,253.19 1,540.44 100.00 1,613.62 2,151.49 30,865.45

Buying from CADADIAN
NET AC Tax Total Saving
Base 4WD 29,400.00 100.00 33,630.00 (76.82)
Base 4WD 29,400.00 100.00 33,630.00 1,407.01
Base 4WD 29,400.00 100.00 33,630.00 2,100.54
Base 4WD 29,400.00 100.00 33,630.00 2,764.55

smogil

Looks as though you are calculating tax based on the Price + f/x rate + 6.1% duty. Is this the correct way, or is tax calculated only on the CAD-equivalent cost excluding the duty. I would think it would exclude the duty.

animagus

The duty applies for cars produced in Japan. Cars produced in the US are exempt from duty (NOT GST) coming into Canada

bankone

GST and PST calculated based on CDA equivalent+Duty+AC Tax

bankone

If GST and PST not applicable to Duty, there is another $200+ saving

mycx

Your calculations are good but here are a few more arguments in favor of buying US.

- Not sure where you took your MSRP for a base RAV4 4WD. On Toyota.com it is $23,555 including $685 of transportation. In Canada transportation is $1390 on top of MSRP 29,400.

- The $100 for AC you have to add it on top of the 29,400 as it is also charged in Canada (110 actually)

With the 200+ from tx on Duty you should be in the ball park of $4000 saved for a base Rav4 4WD. My take is that cars below $30K do not worth the trouble. On a Mazda CX9, I made the same calculations and I happened to show a saving of $11K. Tribeca is 15-20K savings...

sglavas

I wonder if the decision by Toyota, and other car manufacturers, to not sell new vehicles to Canadian residents is a violation of the terms of NAFTA. It seems to me that it would be. I've asked my MP to look into this and I would encourage others to do the same.

tidester

I wonder if the decision by Toyota, and other car manufacturers, to not sell new vehicles to Canadian residents is a violation of the terms of NAFTA.

I don't think so. Toyota is not a party to NAFTA whose provisions apply to governments and not to private companies. It could be a violation if the policies were mandated by one of the governments.

tidester, host
SUVs and Smart Shopper

bankone

I am also thinking of buying from US so that I tried to figure out the savings. You are right are vehicle $30K or less, it does not worth the trouble. You will have a bigger saving if you buy a Highlander.

subahonda

There is no general rule - each manufacturer has its own prices in each country so you have to compare and calculate. BUT- I had wanted only a US Toyota because they had safety features that Canadian Toyotas for the same model didn't (RAV4 had stability control and side airbags - Canadian models didn't). When I found that the Buffalo-area Toyota dealers weren't able to sell because of their pact with the Ontario dealers, I gave up entirely on Toyota because the Canadian versions were inferior. With Subaru and Honda, they were the same on both sides - the Canadian versions didn't skimp on safety like with Toyota. You pay more in Canada but you get the same features. It's surprising that no one has mentioned this in this very long thread - I'd forgotten about it but check those features carefully.

bankone

I checked RAV 4 on toyota.ca. It does have side airbags and stability control. One good thing is that Toyota honors manufacturer's waranty in Canada (not sure about Honda or Subaru). But to import a base model RAV 4, at current exchange rate ($0.94), i can only save about $2000 before considering the inspection fee in Canadian Tire, any modification required, or travel cost to the US dealer.

inniswhe

I am searching for a Toyota Sienna in the US but I have not been able to find any Toyota dealer that will sell new or even preowned. Northeast area preferred as shipping to PEI is lower on the east coast.
I thought some might sell preowned to a Canadian but no luck yet.
Has anyone had any luck with any Toyota dealers selling preowned ? If so can someone post a dealer's name.

If there are no Toyota dealers, are there any manufacturer's dealers of companies that have transferable warranties that will sell to Canadians?
If I can't find a reputable dealer I am probably left with the ebay dealers of almost new vehicles but this looks a little risky.

Thanks for any help finding a dealer.

animagus

The issue the Toyota dealers have is that they have title - which is how Toyota US is monitoring their activity in regards to selling to non-residents. You have to find a car that title has passed (at least once) from Toyota to someone else. Hence the almost new vehicles on E-bay - it appears that some dealers have figured out that "virtually" new vehicles have a Canadian market.

roblan

I having been reading the string about importing vehicles from the US with great interest. I am in Winnipeg and have found a dealer selling used fleet vehicles near Minneapolis. I am interested in a Volkswagen Passat or Jetta they have listed,...low miles and great price...with the exchange and taxes I figure a difference of close to 8 k !!! However...I have read where several people have stated that all vehicles NOT manufactured in North America are subject to a 6 % duty. I have been told that this is not the case..... and that all vehicles manufactured in or outside of the US, but INTENDED for consumption in the US market can be imported into Canada duty free. My research on the CBSA web site today revealed the following......

"As a general rule, if the vehicle you plan to import
was manufactured for sale in the United States and
is less than 15 years old, or is a bus manufactured
on or after January 1, 1971, you need to find out if
it qualifies for importation under Transport Canada’s
Registrar of Imported Vehicles (RIV) program."

This seems to suggest that Volkswagens, Toyotas or other Imports manufactured anywhere...but for consumption in the US market would qualify to be duty free when entering Canada. Has anyone got any expertise in this area that can shed some light here??

animagus

Vehicles such as the Toyota Hybrid (as far as I know, all made in Japan - VIN numbers begin with J) and Volkswagens made in Germany - will be subject to duty and GST. RIV and Canadian Border Services are helpful if your not sure.

animagus

Sorry, I should have added cars produced in the US or Mexico (NFTA participants) will be duty free.

roblan

.....but what of Toyotas, Mazdas etc built in Japan...but manufactured specifically for the US Market....ie.....does it matter where they are made or is the issue that they were made for the US market?

roblan

....upon further review of the CBSA web site I was able to answer my own question. Posting here for others with the same question.....

"Generally, you do not have to pay duty on a vehicle
imported for personal use that was manufactured in
the United States, Canada or Mexico; however, the
CBSA will assess duty on a vehicle manufactured in
a country other than the United States and Mexico.
Duty and taxes are assessed on your vehicle’s “value
for duty.”

www.cbsa-asfc.gc.ca

scrolllock

After looking at the price differences today, I am pretty sure I could set up a business to bring in at least 30-40 new cars a month, make money and save quite a bit for the end owner. The problem seems to be the Warranty??!!! Canadian Automobile manufacturers other than Nissan or Hyunda will not honor the warranty. A Honda or GM car that is built in Canada, them shipped to the US and sold in the US and brought back to Canada is not covered. This is not right. So before I set this business up with Nissan and Hyundai only is there anyone out there that will change the rules? Right now I need to bring in 2 honda civics and a cadillac... new.

ccurrell

I agree with you on the business opportunity here. In my research I see the most saving in vehicles which sell for more then $30,000 as one other person already posted.

Your comment on GM Canada warranty is incorrect however. I have called GM directly, 1-800-GMDrive, and this is what I was told. A new vehicle is covered by GM Canada warranty only after these TWO conditions are met, the vehicle must be 6 months old and have at least 12,000km. The lady I talked to was very diligent in making sure that I understood that both criteria must be met for a Canadian dealership to provide warranty work. Since I live in Niagara Falls this is not a big deal since Buffalo is a 15 minute drive away. As well you may need to swap out the instrument cluster for one with kilometers on it.

scrolllock

So GM will honor the waranty only if the car is over 6 months old and has 12,000 KM??? Do you have this in writing.. I don't trust them! But what about the person that wants a new car from GM?

I think we need to put pressure on our MPs to do something.