Importing Car into Canada from US

bodble2

There are some foreign currency exchange places that will do better than the chartered banks, but generally there is about a 3.5 cents spread between the Buy and Sell rates, so right now, you may be lucky to buy USD at just slightly above par.

defrederick

I waited about a week before first contacting RIV after paying online. That's when I found out that they didn't yet have my recall letter. So I have no idea how long it took for the border to transfer their paperwork to the RIV.

defrederick

scolllock, It was an 07 Sienna.

defrederick

I used XE Trade to do my exchange. At the time, they charged about 1 cent over the posted exchange, so it was a lot better than the banks. The process is a little onerous to setup, but to be expected for the service they provide. The nice thing is that now I can exchange any currency. Expect the setup of your account to take about a week.

spottedmoose

there are several places that specialize in foreign exchange and their rates leave the banks in the dust..a couple are friedberg mercantile(toronto),canadian forex and customhouse..do an internet search and you will get the above co.'s phone #'s ,etc.. the more that you are converting ,the better the rate.

thecannyscot

Hi Defrederick,

I have arranged for my brother-in law to buy me a 2008 toyota Highlander and the only uncertainty is how to get the recall letter. The dealer can't understand why we need it. (He doesn't know the car is going to Canada) What number did you call for Toyota US to get the recall letter and was the vehicle you bought a 2008? What exactly did the recall letter from Toyota US say?

jadeboy

I talked to Transport Canada. Each car company provide the paper work on a "voluntary" basis.

thecannyscot

How recent does a recall letter have to be?

dayfut

Hi everyone. I was checking the RIV site (again) and noticed that the admissibility document has just been updated. I've been checking for my 08 Honda to be added, but unfortunately, the updated admissibility list doesnt have it yet. Perhaps your vehicle was updated? You can go check here

http://www.tc.gc.ca/roadsafety/importation/VAFUS/list/VAFUS.pdf

Just wanted to let everyone know. Good luck

henry23

Well, I do not do that normally, but I have some US savings that I want to exchange. If someone is interested I can do it with average rate. Just limited amount, I'm not a bank.

netdog

I am considering titling my new vehicle under my business name due to tax savings but I am wondering if that will overly complicate matters either at the dealership or at customs. What additional formalities are involved in doing this for anyone who's already gone through this process?

Thanx.
Carl

isellhondas

It's not a matter of not wanting to deal with Canadians.

Honda does not allow us to sell new Hondas destined for the Canadian marketplace.

I suppose if I were a Canadian dealer I would be very happy about this!

silver_fox

Quote:
"Honda does not allow us to sell new Hondas destined for the Canadian marketplace.

I suppose if I were a Canadian dealer I would be very happy about this! "

I am sure the force being used by the manufacturers bully tactics is what's keeping the Canadian dealers from shutting down. What the Canadian dealers should be pissed with is how the manufacturers are blatantly screwing them. There is NO justification for the size of the price difference from US to Canada.

easytogo

Hi Dan,

Could you please tell me which dealership you got the car from please?

email: erictong@shaw.ca <-100% canadian mail box

Thanks a lot

hybrid10

Dan;

Great summary, thanks. Was your friend residing in Nevada and dealer let a sale to the friend go without tax becuase you were importing to Canada?? Or was your friend out of state of Nevada?

hybrid10

Two points:

1. I agree the issue is clearly with whomever sets the dealer's "invoice" price in relation to MSRP that prevents dealers from being competitive with US pricing; clearly US invoice prices are lower than Cnd for no good reason (other than Cnd duty 6.1% for foreign manufactures from Japan). You would think the power of all the dealers in Canada pressuring their Cnd head office (Toyota Canada) would be the most effective approach. I guess new sales are not slow enough yet as too many people could not be bothered with buying in the US.

2. Please note that US dealers are scanning this forum (Eg., "isellhondas") and I know of one that faked out an innocent poster to this forum into giving the name of a cooperative/creative dealer who was then called out with threats to Toyota US which scuttled my deal and all other deals they would have done for Canadians. Please be careful who you pass dealer info to re private emails especially yahoo.ca, hotmail.ca, gmail etc; anyone can get those accounts.

cheers

isellhondas

I'm not "scanning" anything. Just stating facts.

I don't make the rules or get into the politics. If a US dealer wants to blatenly break the rules, that is their business. I don't care.

eddy11

These discriminative rules and policies protect monopoly and go against free market economy and fair trade principles. If we think we live in democratic society, we should raise our voices and take a stand.

bodble2

As I have wondered out loud before, are the manufacturers not breaking some form of anti-trust law? Is what they are doing not a form of price-fixing, and/or collusion/conspiracy to restrict competition? :confuse: :mad:

silver_fox

I am not sure what the American equivalant to the Competition Bureau is but I would think they would be all over this, I know they would be in Canada. :confuse:

survivor1

Well, they didn't even return my emails regarding pre-owned Hondas. They said they'll get back to me but it has been more than a week now and I haven't heard anything.

isellhondas: where is your dealer located? Are you allowed to sell Honda certified used cars to Canadians?

isellhondas

I'm in the Seattle area and we can sell used cars to Canada.

It can be a PITA however.

dreyfus1

The reluctance of mfrs to open the taps and let market function is partly explained in the following.
Residual Values- There is a huge leasing market financed by
Financial arms of auto mfrs, Banks and other financial institutions. Assumptions are that only 15% to 25% will have the gumption to cross border shop for autos. Rather than lower the price to US levels for 100% of sales it is more profitable for Mfrs and Dealers to lose 15 to 25% of their market to US. Hence by keeping prices at their present level they protect their cash flow on a daily basis and even more important they protect "Residual Values" for the next 3 to 5 years.
The Residual Values issue has the potential to become Canada's subprime, CDO debacle. If the 15 to 25% assumption is wrong and it turns out to be 40 to 50% cross border auto shopping then all bets are off and capitulation on auto pricing will occur in Canada. The Canadian Govt. can then rescue the Auto Finance companies, Banks and others using taxpayer money.
I encourage you to comparison shop in both countries. Don't blame the Mfrs or dealers for operating in their own interest, they will respond to losing market share when it becomes a problem for them.

leftcoastauto

That makes a great deal of sense. I maintain, given parity over the long term vehicle prices will eventually come close to reflecting the strength of the currency. Of course higher Canuck prices also factor in a smaller market, higher wages along the supply chain and the effect of a more burdensome tax system. The rapid move to parity has caused max-pain for the Canadian dealers holding large inventories valued at "yesterdays" prices. Repurchase agreements offer another level of pain.
It's going to take some time.

volvomax

2. Please note that US dealers are scanning this forum (Eg., "isellhondas") and I know of one that faked out an innocent poster to this forum into giving the name of a cooperative/creative dealer who was then called out with threats to Toyota US which scuttled my deal and all other deals they would have done for Canadians. Please be careful who you pass dealer info to re private emails especially yahoo.ca, hotmail.ca, gmail etc; anyone can get those accounts.

This isn't a dealer issue, it is a manufacturer issue.
Most motor companies have it in their franchise agreements that their dealers cannot knowingly sell a car for export.
Given the upsurge in Canadians coming south for cars, it is very easy for the motor companies to issue messages re-iterating this agreement.
Some dealers will still break the rules, some won't.
It is very easy for Toyota, or Honda or Volvo etc to send someone to the dealership, pull all the sales orders and go over where each car went. Please believe this will happen.

volvomax

As I have wondered out loud before, are the manufacturers not breaking some form of anti-trust law? Is what they are doing not a form of price-fixing, and/or collusion/conspiracy to restrict competition?

not at all.
the US gov't forbids the import of foreign cars to the US.
Since the gov't themselves determines which cars are permissable to sell and own in the US, the precedent is there.
Also, plenty of Canadians live and work in the US and buy cars here. So, no one is saying that a Canadian is barred from doing business in the US. If you buy a car in the US, register it here, pay the taxes here, you can do whatever you want.

netdog

leftcoastauto, I completely agree with your comments except that they hardly explain why a Toyota assembled right here in Ontario under the same burdensome tax system and higher wages sells for $10K+ less south of the border.

I believe it has more to do with a free market economy and a willingness in the Canadian market to pay those higher prices. Even with all of the cross-border shopping, vehicle sales in Canada are still climbing year-over-year.

There is nothing wrong with a free market but a free market under NAFTA is supposed to extend beyond our borders and when US auto manufacturers and/or dealer networks put up obstacles that prevent us from purchasing the right vehicle at the right price regardless of which side of the border that may be then that is case of anti-competitive practices. I hope the recent class-action lawsuit launched against them nails them to the wall on that basis alone, although I wouldn't hold my breath to see that case wrap up any time soon

Carl --

bodble2

Partly in reference to what netdog said in Post #1162, if NAFTA supposedly "removes the border" betweem Canada and the US, then aren't the manufacturers guilty of price-fixing, as they are artificially preventing, or interfering in the functioning of a free market?

leftcoastauto

I can't argue with you. I will preface further comments by saying I have 2 American spec Volvos in my driveway. My comment was aimed at the retail level. Costco can sell a plasma TV on a tight margin, but at least that's the end of the sale. The margin is current with their wholesale purchasing power. A Canuck car dealer leases out a car with a balloon payment 3,4 years down the line to finish the transaction. They have an inventory of these vehicles now and into the future that are underwater the moment they are turned in. They have vehicles coming in that were ordered some time back. How do you sell a new 07 if the 08 is 10 G's cheaper. It is the rapid rise in the C$ that has caught the retail sector looking greedy.
I have no sympathy for car dealers, what other retailer in todays world wont tell you the actual selling price. Can you imagine walking into Costco or Walmart and seeing an inflated price tag, however with some discussion with the sales manager we can maybe knock off a few percentage points. Give me a break, base price add options add margin "here's your price sir take it or leave it. Good price we just laid off twenty sales folks that we no longer need, incidently that enabled us to cut our costs. Sign here sir."

defrederick

hybrid10,

My friend lives in MA, so it was considered an out of state purchase.

Dan

defrederick

The number for Toyota US is 1-800-331-4331. I first called them before I even went to pick up the van, but they had no record of my VIN (which concerned me a little.) I called them again when the dealer letter was insufficient and they were completely cooperative. They registered me in their database and then faxed me the letter.

It's on Toyota Motor Sales letterhead out of Torrance, CA. It states:

"We are writing in response to your request for information regarding a manufacturer's recall or a special service campaign that would involve your 2007 Sienna.

"We have checked the serial number of your vehicle, xxxx, with our records and determined your vehicle is not involved in any previous or current service campaigns.

"If you have any questions, please do not hesitate to contact our office at 1-800-331-4331."

scrolllock

Great news. If it is not a 2008 then you are on a roll. If a 2008 do you think you can ask them for a letter stating that the car meets or exceeds Canadian Safety Standards....

Apparently this is what you need for the RIV to give you an approved form 2

crikey

Ban greets Canadians seeking U.S. car deals

isellhondas

I must get six calls or emails a day from Canadians who want to go around the system and buy new Hondas.

I certainly can't blame them but I can't sell them cars!

Some understand, some get mad, some tell me "Another Honda dealer will do this"

Some get VERY creative and want me to basically break the rules just to save them money.

crikey

I can't blame my fellow Canucks. They are getting hosed with this overpriced structure. Monetary parity with the US greenback did not seem to bring any cost savings.

Do pre-owned vehicles fall under the same restriction at the dealer level?

isellhondas

No, we can sell used cars but the rules can make it a real PITA.

volvomax

NAFTA doesn't "remove" the border.
It just makes international commerce easier for some items.
Cars simply aren't one of those items.

subahonda

Actually, NAFTA removes restrictions and duties on cars imported from the US into Canada. There is a detailed analysis at
http://answers.google.com/answers/threadview?id=779165
Previously, you could not bring a new car into Canada and only used cars over a certain age were allowed. Then the age decreased to 0 over a number of years.
The difference we are seeing now is that some manufacturers are creating regulations about sales at dealer locations that appear to go beyond what existed before. The origina may be this: A Canadian dealer cannot buy wholesale from the US manufacturer or from a US dealer for resale in Canada as a new vehicle (but i see that they may create fake subsidiaries that do this - look at online dealers on Autotrader.ca). US dealers can sell to an individual for his own use within NAFTA but it is more complicated. When the C$ was low, some US dealers were buying high difference models and reselling them. That violates the franchise agreement. I suspect that if dealers in the US are not selling to residents of Canada, it is because the resale in Canada cannot be controled - the dealer in the US would have to know that the person is not a dealer themselves as this violates their franchise. BTW People in the US have always been able to buy cars abroad and import them when Canadians couldn't. They can pick up a BMW or Volvo at the factory and have it shipped.

silver_fox

Import process is now complete, I am driving a Canadian registered imported XC90.

I am impressed at how smooth and relatively simple the whole process was. After reading some of the posts on this and other forums I would have to say that Volvo could be one of the easiest vehicles to import, I have not heard of any claims of the manufacturer instructing dealers not to sell to Canadians, Volvo does not require any modifications and full warranty is honored. Also it appears that Volvo can yield some of the highest savings in comparing the US to Canadian dealer pricing.

Here are a few tips and observations I'll share from my import experience.

- Spend some time doing your homework before you rush into a purchase. Selecting a vehicle that is admissible, available to Canadians without having to go around the system and a vehicle that is fully covered by warranty may be a chore. (I had absolutely no road blocks with Volvo)

- A good dealer will arrange your temporary registration and insurance.

- Only certain border crossings charge the "green tax" on less efficient vehicles. I did not have to pay the $1000 tax as stated on the Canadian Border Services website.

- Have the RIV email you the Form 2 to eliminate the wait for postal service.

I would definitely do it again, heck I am tempted to sell this one for a profit and buy another US Volvo.

Here are some of the sites I found helpful.

http://www.cbsa-asfc.gc.ca/E/pub/cp/bsf5048/bsf5048-eng.html

http://www.apa.ca/template.asp?DocID=253

http://www.importcartocanada.info/

http://www.ehow.com/how_2060267_import-car-from-united-states.html

http://www.customs.ustreas.gov/xp/cgov/export/export_docs/vehicle_exports/72_hrs- - _before_personal.xml

http://www.cbp.gov/xp/cgov/export/export_docs/vehicle_exports/

http://www.cbp.gov/xp/cgov/export/export_docs/motor_vehicle.xml



http://townhall-talk.edmunds.com/WebX?14

isellhondas

So, I wonder how the local Volvo dealers like this?

silver_fox

If they don't like it, I suggest they lower their prices. I would prefer to purchase at the local dealer but there is no justification for a $26000 difference in MSRP.

I know its not that simple, but when it comes to that kind of savings a consumer really has no choice.

chrisjw

At what point to I have to tell you that I am a Canadian?? I have a US address and a US social security number, and I am not wearing a beaver hat

crikey

Sorry, but I'm completely lost with your response.

subahonda

iselhondas - whatever rules you are referring to are not a matter of law. If HM has created its own rules for you they are not universally followed. My friend bought a new Pilot from a dealer in the US and brought in into Canada with no problem (a year ago)- I will not disclose the dealer. I've yet to hear that WalMart asks you where you live before they sell you a vacuum cleaner. There are laws and there are artificial trade restrictions. You should fight to get the sales. If you don't accept the "rules" passively and get them overturned, you will be the one who benefits most.

volvomax

After reading some of the posts on this and other forums I would have to say that Volvo could be one of the easiest vehicles to import, I have not heard of any claims of the manufacturer instructing dealers not to sell to Canadians,

Actually, just like Honda, it is against the franchise agreement to sell a Volvo for export.
If the car can be titled in the US, then no one cares.
However, if it can be proven that the car was directly exported, then Volvo can penalize the dealership severely.
So, I wouldn't let on who you did business with, if the car was sold directly for export

bodble2

I couldn't care less how they feel. They don't care how I feel about paying thousands more than my American friends. Instead of getting pissed, maybe they should get off their [non-permissible content removed] and pressure the manufacturer to lower the prices. :mad:

crikey

Canadian dealerships will likely not have any incentive to pressure the manufacturers. Canadians are still buying cars in Canada.

Auto buyers drive retail sales higher

Canadians have to stop or severely curtail auto purchasing for prices to go down. Less demand, more supply = lower prices.

bodble2

Some dealers have got to be hurting though, I would think. Probably not so much the lower-end brands since the price advantage in absolute dollar terms is not that great (ie. I'm not too motivated to go south to buy a Honda Fit or Civic), but for the mid to high-end stuff, the difference can be quite substantial. You could say the rich guys don't care, but in most cases rich guys get rich because they are stingy with their money, and they don't like to be "ripped off", so to speak.

crikey

You have a point. That report is probably taking the figures of cumulative sales, not really distinguishing luxury cars and regular cars. It is true that the difference goes further north when it comes to luxury cars. It would be interesting to see what the numbers are for those.

And I agree with the rich folks mantra. Makes sense.

benji99

Just import the Lexus RX 350 AWD and in the process of getting it to register

Cheers

Ben