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Smart Shopper Importing Car into Canada from US
4505 messages, Last post on Nov 30, 2009 at 11:38 PM
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Replying to: canucknuckled (Mar 25, 2006 7:05 pm) FYI - for those living in southern Ontario, I spoke with a dealer in New York state that said they are not required to collect state taxes. All they would do is charge us a fee for a thirty day temporary vehicle permit which we could use to drive to Ontario and register the vehicle. Michigan has different rules so it appears to be better to purchase from New York State. Thanks again, plesome |
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Replying to: canucknuckled (Mar 25, 2006 7:05 pm) 2. Notify U.S. Customs and Border Protection at your port of export and for that matter Canada Border Services Agency (Customs) at your port of import one week in advance of your purchase 3. To save yourself aggravation and qualify for the greatest discount insist on full purchase from the U.S. dealer (no U.S. financing required). If you need and qualify for a new car loan arrange it in Canada. Disclose what you are intending to do to your bank or trust. Confirm the logistics involved in wiring the funds (EFT) from your bank to it’s correspondent bank in the U.S. You want to be sure that everything is in order prior to handing over your funds to the U.S. Dealer. 4. Pay RIV fee ($209 all Provinces except Quebec which is $224) - Arrange CTC inspection within 45 days of import 5. Have the U.S. dealer provide a Letter of Compliance or recall clearance letter. It states whether or not there are any outstanding safety defects on your vehicle and recalled by the manufacturer. The recall letter must come from either the manufacturers head office or authorized American dealer (not re-seller). Contact the U.S. head office of the manufacturer ask if the dealer can issue the same. RIV will only accept a letter is on company letterhead with the manufacturers logo. U.S. dealerships must include address as well as the manager's name and signature. The VIN (17 digit vehicle identification number) must be included in the letter. 6. You will find that generally for an admissible new vehicle to pass inspection, we need: a. Daytime running lights (DRL’s) [Not an issue with current model GM’s. DRL’s should be programmable by any reputable service department of most manufacturers. Arrange it with your US Dealer service dept prior to purchase] b. Metric Speedometer [Metric may already exist on most speedometers. If not, changing it at a Canadian dealer may only cost about $300.00 (they have to input the correct odometer reading pursuant to the Excise Act). Another alternative to pass inspection is “stickers” on your speedometer - Contact the RIV to confirm]. 7. Pay GST (7%) and appropriate PST or HST in Atlantic Canada at the port of entry - reference the Bank of Canada for the foreign exchange rate on the date of sale. 8. There is no duty if your vehicle originated in Canada or the United States. 9. There will be $100 excise tax if the vehicle has air conditioning 10. If they are particularly diligent, you may have to pay CBSA addtionally imposed excise taxes. If your passenger car weighs more than 2,007 kilograms or 4,425 pounds. Multi-purpose vehicles (vans and SUV’s) and station wagons have a greater weight allowance, 2268 kilograms or 5000 lbs. This fee is scaled in increments of 15 Kg but the most you may pay would be about $300 +/- for something as big as a Chevrolet Suburban. That's pretty much what my research turned up as well. I'll just add a few points: -Most cars make the RIV list, but not all, so do be sure that yours is on it. While most cars make it, some would be very costly or next to impossible to get into compliance. -Tethers for child seats can be an issue for some cars. Again, most cars will make the grade, but some won't. The RIV list should help with this. -Notifying the US port of exit by fax is essential, but a few day's notice may be sufficient. I'd double check this on your own, don't take my word for it. -The metric speedometer shouldn't be issue for most cars, because US speedometers almost always have metric markings as a secondary marking, which seem to be good enough. -For the odometer, a sticker that makes it clear that the reading is in miles and that provides a math conversion formula (if I'm not mistaken, this is provided by Canadian Tire) might be enough, but double check this. If you have a digital odometer that can flipped between standard and metric, then obviously you need not do anything. -You might also require bilingual stickers for your airbags, safety equipment, etc. If the warning labels on the passenger visor are not in French, a bilingual sticker is required. (Sorry, I don't have more details about where you get the conversion stickers, or what happens if you don't.) Again, the real equipment issues seem to be focused on DRL's, child tethers, the odometer sticker and bilingual markings. The fax to US customs is a must, as is the "recall letter". Warranties can also be an issue, depending upon the brand, so be careful. Changing gauge clusters should not be necessary for virtually any car. (If any of this is mistaken, feel free to correct it.) |
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Hi, I was told by a Michigan GM dealer that you cannot buy a "New & Untitled" vehicle in the U.S. and import it into Canada. But you can bring a "Used" 2006 with 500 miles on it for example from the U.S. into Canada. Also somebody else told me that the GM warranty on a new imported vehicle would kick in after 6 months regards,
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Replying to: bota (Mar 28, 2006 6:40 am) In response to your last point first, I have received the same response from Canadian GM dealers. I suggest you: 1. Email GM Corp. USA (customer service), outline your (Canadian resident) intent to purchase a GM vehicle from a U.S. GM dealer and lawfully import it into Canada. Specifically ask about the warranty ramifications. If you happen to obtain a direct and clear answer, save it. I anticipate it will be worded in such a way that they will refer you to one of their many Canadian dealers in your area…. Should that be the case, reply to them and ask if you (Canadian) are restrained from commerce with U.S. division of their retailers /dealers. Ask if their warranty contracts are transferable between Canada and the U.S. I believe the contracts (GM and GM Canada) mirror each other, so why would the location of vehicle operation void contract, Alaska’s environment is every bit as hostile as any Canadian environment. 2. Email GM Canada (customer service) outlining the same scenario and again save the response. It may take a couple of requests to obtain adequate responses. 3. You may want to go so far as contacting the state finance department and Better Business Bureau to ascertain if you are prohibited from new product purchase. 4. Communicate through a recordable medium like the Internet or facsimile rather than telephone since “getting it in writing” is always better than taking someone’s word if you expect the issue to be revisited. I suppose if you anticipate an adversarial relationship at the onset, you should ask yourself why you want to do business with that manufacturer / dealer. 5. At risk of sounding like an advocate for it, the NAATA website mentioned in my previous posting helps to explain this. (X-ref: http://www.naata.org/new%20files/faqs.html). In response to your first point, the dealer is wrong. I have heard similar examples however the pre-owned vehicle had to be “titled” six months prior or have at least 7,500 Miles (16,100 Km) to ensure warranty coverage. I suppose as a merchant, the dealer may or may not sell any of his/her products to whoever he/she chooses, provided he/she does not contravene the law (municipal, state/province, federal) and does not engage in discriminatory practices. This is an area of civil law involving chattel (moveable property) and contracts. What does the retailer care who the purchaser is? It should be a mutual agreement wherein you offer to provide him/her consideration (negotiated full purchase price) and he/she provides the product c/w warranty and you assume title or ownership. Provided the dealership is not being used by the new car purchaser as a conduit to launder proceeds of crime and proper protocols are followed, transfer of title or ownership could be easily arranged. Unless of course, he/she fears sanction or exclusion from GM Corp., which I believe would be contrary to the antitrust legislation (Competition Act in Canada or Sherman Act in U.S.A.). BTW. A colleague (Canadian resident) recently attempted to negotiate the purchase a new Mercedes in the US because Daimler Chrysler Canada dealers were not willing to match or even approach US purchase prices (factoring USD/ CAD exchange). His experience was that no Daimler Chrysler US dealers would sell “new” to him so he gave up and resorted to the purchase a nearly-new Mercedes in the US. FYI, I bring to your attention a recent article dated March 20, 2006, in Automotive News, regarding the antitrust settlement by Toyota Corp. Link to: • http://www.autonews.com/apps/pbcs.dll/article?AID=/20060320/SUB/60317060/1003/BR- EAKING&refsect=BREAKING Antitrust law in the U.S. is legislated in the Sherman Act. Link to: • http://www.usdoj.gov/atr/foia/divisionmanual/ch2.htm I am not aware of any similar class action lawsuits in Canada at this time but believe such violations may be in contravention of the Competition Act. Link to: • http://laws.justice.gc.ca/en/C-34/index.html Good Luck and keep us posted, Canucknuckled Socala4, thanks for filling in the voids, especially the bilingual (French/English) airbag warning stickers for the visor. I guess RIV can provide more details if necessary. Readers may choose to stop here, the following are just ramblings. For several reasons automakers have severed their operations into national divisions (i.e. GM Canada and GM USA) and therefore practices of one division may not necessarily binding in another. From a consumers perspective, fluctuating currency exchange rates between nations (Canada and US in this case), globalization, and rapid growth in emergence of a medium (Internet) where reliable information is accessible and readily exchanged has dramatically impacted the automobile industry. Although there are significant national economic repercussions (jobs, government subsidies, ect…) our respective federal governments are signatories to a pact that allows cross-border vehicle shopping, provided there is adherence to the respective federal, state/province, and municipal statutes. Thus, oligopolies like the automobile industry may not tacitly collude to restrict distribution to consumers based upon geographic origin. In my opinion such a practice would be construed as discriminatory and contrary to antitrust legislation. Consumers are also aware that manufacturers and distributors are lawfully afforded regional incentive programs that may favor certain locales in an effort to “stabilize the market” or balance inventory. In fairness, manufacturers (automakers) and their distributors (dealers) are engaged in enterprise to enjoy the benefit of profits (margin) for themselves and their stockholders. Auto producers wholesale their products to dealer retailers who provide the product/service to us, the consumer/ client at a negotiated price. Increased product demand may diminish supply and warrant a justified price increase in a capitalist free market economy, so be it. What these multi-national corporations and their distributors must understand is that with the proliferation of the internet (information sharing), savvy consumers are also participating in the global economy and trans-border movement of goods and services is no longer their exclusive domain. Consumers are willing to go the extra mile (or Kilometer in Canada) to enjoy fair deal. Don’t construe this as a militant stance as I know I’d pay a few extra bucks ($1500.00 CAD is my limit) to contribute to my local economy, defeat the hassle and inconvenience of an extra-territorial purchase but I resent “gouging” at my expense. Surely dealers and manufacturers understand that they are dealing with more educated consumer who wants to pay the lowest possible price and expect reasonably trouble free product function. Canucknucled
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Replying to: canucknuckled (Apr 02, 2006 10:03 am) Thankfully enough I happened to copy the article. Here it is: Toyota settles suit alleging collusion on imports Mark Rechtin | | Automotive News / March 20, 2006 - 6:00 am LOS ANGELES -- Toyota paid $35 million to settle allegations that it colluded with other major automakers to keep gray-market vehicles from being exported from Canada to the United States. The lawsuit continues against five other automakers: General Motors, Ford Motor Co., DaimlerChrysler AG, American Honda Motor Co. Inc. and Nissan North America Inc. Under the Toyota settlement, agreed to in late February, Toyota Motor Sales U.S.A. Inc. admits no wrongdoing in the class-action lawsuit. The suit, filed in 2003 on behalf of a group of consumers, alleges automakers violated the Sherman Antitrust Act by keeping U.S. customers from taking advantage of lower vehicle prices in Canada. The suit seeks unspecified billions of dollars in damages for U.S. consumers who bought a vehicle of any brand after Jan. 1, 2001. By restricting Canadian imports, automakers fixed U.S. market retail prices at an unfairly high level, the suit alleges. The suit alleges that automakers colluded to blacklist dealers who imported Canadian-market vehicles for resale. Automakers also agreed to decline consumer warranty claims against those vehicles, the suit alleges. The action mirrors action this decade by the European Union to enforce price uniformity among member countries. The National Automobile Dealers Association and Canadian Automobile Dealers Association also are defendants. Paying a settlement without admitting guilt was a better use of its legal team's time and money than going to court, says Toyota spokesman Xavier Dominicis. Toyota honored warranties on Canadian vehicles imported to the United States, Dominicis says. And Toyota never blacklisted any dealer or owner who imported a Canadian-market vehicle, he says. "Other automakers may have had more restrictive policies, but our actions were different from other automakers," Dominicis says. "We will continue to price our vehicles based on competitive conditions in local markets." Spokespersons for GM, Ford, NADA and the Canadian Automobile Dealers Association declined to comment on the litigation, other than to say it is without merit. They declined to comment on Toyota's settlement. In a 2005 motion for summary judgment, denied by the U.S. District Court in Maine that is hearing the case, GM said it never met with other automakers to discuss how to handle the gray-market issue, thus making collusion impossible. The automaker also said its import-export policies have been independent and in place for decades. Canucknucled |
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Hi everyone, I have read through the information regarding importing cars in Canada from the USA. Does the same hold true for used cars? I have a 1994 Jeep Cheorkee sport. I got a great deal on it here about a year ago. I have lived in the US for over a year and am now going back to Canada to do my Ph.D and would like more info on the costs/administrative hastles i would have to go through to bring my Jeep into Ontario. IN all, how much would it cost me to bring the car over the border? I paid $2, 495USD originally for the car. How much would it cost to pass the inspection (aproximately?). In toher words. Is it worth my hastle to go through all of this? Or should i just sell here and biy a new car in Canada? I was hoping to cross the border, pay the duties etc. but not register the car for about a year or so until i have enough money to pey for what may be needed and for insurance. Is this possible? or do i have to register the car and get everythign done within those aloted 45 days? Any help would be great! Thanks!
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I am fed up with our political leaders who raise all sorts of expectations re free trade in automobiles and then erect plenty of red tape and non-tariff barriers to make it difficult to do business. The Big 3 are no help either. They should treat Canada and the U.S. as a sigle market and not have separate corporate headquarters and marketing policies. Before you buy a car in Canada, check the domestic price in the country of origin and the exchange rate. The difference is what I call the rip-off factor. In order to make sure you are comparing apples to apples, ensure your comparison does not include government levies such as excise taxes and value added taxes as these vary from country to country. |
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Is the GST amount payable calculated on the original purchase price or on a more current value, say a blue-book value for example?
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Replying to: andrew14 (Apr 14, 2006 12:55 pm) Go to the following: http://www.cbsa-asfc.gc.ca/E/pub/cp/rc4140/rc4140-05e.pdf http://www.cbsa-asfc.gc.ca/E/pub/cp/rc4105/rc4105-e.html http://www.cbsa-asfc.gc.ca/E/pub/cp/rc4151/rc4151-e.html http://www.riv.ca/english/html/how_to_import.html http://www.mto.gov.on.ca/english/dandv/vehicle/rgoutcan.htm http://www.driveclean.com/ You're circumstances are unique so better to email RIV, CBSA, and MTO. Not aware of vehicle inspection in Ontario other than Ontario's Driveclean (emissions)program and of course the mandatory inspection at a local Canadian Tire for RIV. Insurance is compulsory and huge fine ($10,000) for driving without (Ontario Compulsory Automobile Insurance Act). If you are a non-resident of Canada you may be able to get away with not registering your vehicle however I would refer to the Ontario Highway Traffic Act to be sure. Good Luck |
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Replying to: drustjotaw (Apr 17, 2006 11:24 am) http://www.cbsa-asfc.gc.ca/E/pub/cp/rc4140/rc4140-05e.pdf Also refer to subsection 220.07 of the Excise Tax Act http://laws.justice.gc.ca/en/e-15/271763.html Hope it helps |
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