I am considering with an almost 90 cent dollar the idea of buying a car from the US and importing it into Canada, this would be a new car from a dealership, anyone have any experience with this? my understanding is that I would pay the GST on it, can anyone shed any light?
importing a car
- Thread starter scouser1
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pollution standards could be different, I know a fellow that imported a used car a few years back, had to do major work to get the stds up to Canada's guidlelines, also had to change the speedometer to be KM predominent, might want to check with Canada Customs for a ruling on importing a new car.
I did something like that years ago when there was a currency fluctuation. A friend who lives in Germany sent me money to buy a Mercedes in Canada for delivery in Germany. The idea was that you pick up the car at the plant in Stuttgart Germany, drive it around on holidays, and then ship it back to Canada. Except we did not ship the car back to Canada. With the cost of shipping back to Canada included in the purchase price, flying me over to Germany with expenses, and the cost of converting the car from Canadian to German standards, it still made him a decent profit to buy the car in Canada and sell it in Germany.
I also got a nice aluminum Mercedes flashlight out of the deal.
Might want to check if the warranty for a US bought car is valid in Canada.
I also got a nice aluminum Mercedes flashlight out of the deal.
Might want to check if the warranty for a US bought car is valid in Canada.
Tor Star Sat Wheel section few weeks back had article on this. Mentioned few brokers specialize in looking after finding U.S. dealership, all the paperwork, daytime running lights polution control, etc. People are taking advantage because of the dollar.
It's popular between neighboring states/prov to import/export cars & big 3 threaten not upheld the warranty as it's grey market. Same deal with computers & electronics.
But if its brought from far away states, less of an issue.
It's popular between neighboring states/prov to import/export cars & big 3 threaten not upheld the warranty as it's grey market. Same deal with computers & electronics.
But if its brought from far away states, less of an issue.
I posted about this previously and no, not many vehicles made in the US will have duties and the customs fee is $200.00.freshbreath said:oh man, not just GST
customs and duty fees up the ass
not worth it
Here is the link to the site that has all the info:
http://www.riv.ca/
I found that while there was some cost savings, with my family discount, it wasn't worth the effort to do it myself. As for warranties, most of the Big 3 warranties cover vehicles anywhere in North America so there is no reason it wouldn't be valid.
Daytime running lights are easy to install.
Grey market
Take a look at Toronto Star for the article. Big 3 consider cars 'illegally imported'. Some dealerships here verbally told automaker may not honour service claim if VIN from neighbor U.S. states.
Grey market applies not just in autos. If you buy goods from outside of Canada you would know.
My friend wanted me to buy them a cheap Canadian car years ago, here's past research...
In Buffalo new, May 30, 2002
AUTOMOBILE INDUSTRY
The gray market blues
--------------------------------------------------------------------------------
Chrysler won't honor warranties on cars bought in Canada for use in the U.S.
MARK MULVILLE/Buffalo News
Avoiding the gray market, Missy Mercurio, left, and her mother, Peg, both of Cheektowaga, Wednesday evening look over PT Cruisers at Towne Chrysler-Plymouth-Jeep on Camp Road in Hamburg.
From staff and wire reports
5/30/2002
Chrysler has told dealers that it will void warranties on 2003 models built for the Canadian market and resold in the United States, but at least one local dealer doubts the change will have much impact in the Buffalo Niagara market.
Chrysler is attempting to crack down on the "gray market" sales, under which U.S. buyers take advantage of vehicles priced lower in Canada.
"I don't know of any Chrysler dealers in the Buffalo area that have new product on their lot from Canada," said Tony Daily, general manager of Towne Automotive Group, which includes the Chrysler brand in its lineup.
Daily noted that the change applies only to vehicles starting with the 2003 models, so it serves as a warning to people considering buying vehicles in Canada and bringing them across the border for resale.
"Whether they are going to be able to enforce it or not, at least they're telling dealers what they intend to do," he said.
Last year, the region's nine Chrysler/Plymouth dealers sold 2,251 Chrysler/Plymouth units, ranking 11th among all brands and accounting for about 3 percent of all new vehicles sold, according to the Niagara Frontier Automobile Dealers Association.
Chrysler told its dealers a week ago it would no longer honor new car warranties for the cars intended for sale in Canada, said Dave Elshoff, a spokesman for Chrysler Group of DamilerChrysler AG, the first U.S. automaker to take such action.
"It's a growing problem," Elshoff said.
Consumers, particularly in border states such as New York, have been buying new Chryslers, Dodges and Jeeps priced in Canada at thousands of dollars off the U.S. price in a trade greased by the favorable exchange rate between the American and Canadian dollars, he said.
The cars, trucks and sport utility vehicles are marketed in Canada, but purchased and resold in the United States by auto brokers, used car dealers, some fly-by-night operations and legitimate dealers, Elshoff said.
This legal "gray market" can flourish especially in states along the Canadian border where transportation costs can be minimized. Chrysler estimates 200,000 gray-market cars and trucks from all manufacturers are imported from Canada to the United States annually.
"It's not limited to the border states," he said. "Certainly New York is a state that, sharing such a larger border with Canada, has a large number of these gray market vehicles. Michigan tends to get a few, but it's just as likely to find them in Texas, Iowa, the Midwest."
The New York state Consumer Protection Board is urging consumers to beware that the discount Chrysler they are considering may not carry a new car warranty.
"Consumers should be careful to make sure that the car or truck they are purchasing has an adequate warranty," said board Chairwoman May Chao. She urges consumers to ask dealers whether they will receive a manufacturer's warranty and where the car was originally purchased.
"If the dealer or some other third party offers an adequate, reliable warranty, then consumers may not be greatly affected by this change," Chao said of Chrysler's decision to revoke the manufacturer's warranty on the gray market cars and trucks.
Aftermarket warranties can be purchased, and they can still result in a price that's cheaper than the cost of the same model intended for sale in the United States, Elshoff said.
Chrysler is simply enforcing a longstanding policy and several automakers based in Japan already enforce similar policies, he said. Exceptions will be made for special circumstances, such as when a consumer who has bought a car in Canada moves to the United States.
Chrysler wants to curb the gray market to preserve the lower prices in Canada that fuel that market's sales, avoid undercutting the higher-price American market and to make sure models are purchased through dealers who can build a relationship for further sales while benefiting their service departments.
"It represents a sizable issue for all the auto manufacturers," Elshoff said. "It represents an issue not only because it does have bottom-line impact, but because it compromises our relationship with the customers and as much as we all invest in trying to retain customer loyalty, it throws a roadblock in the first step of building the relationship."
__________________
Take a look at Toronto Star for the article. Big 3 consider cars 'illegally imported'. Some dealerships here verbally told automaker may not honour service claim if VIN from neighbor U.S. states.
Grey market applies not just in autos. If you buy goods from outside of Canada you would know.
My friend wanted me to buy them a cheap Canadian car years ago, here's past research...
In Buffalo new, May 30, 2002
AUTOMOBILE INDUSTRY
The gray market blues
--------------------------------------------------------------------------------
Chrysler won't honor warranties on cars bought in Canada for use in the U.S.
MARK MULVILLE/Buffalo News
Avoiding the gray market, Missy Mercurio, left, and her mother, Peg, both of Cheektowaga, Wednesday evening look over PT Cruisers at Towne Chrysler-Plymouth-Jeep on Camp Road in Hamburg.
From staff and wire reports
5/30/2002
Chrysler has told dealers that it will void warranties on 2003 models built for the Canadian market and resold in the United States, but at least one local dealer doubts the change will have much impact in the Buffalo Niagara market.
Chrysler is attempting to crack down on the "gray market" sales, under which U.S. buyers take advantage of vehicles priced lower in Canada.
"I don't know of any Chrysler dealers in the Buffalo area that have new product on their lot from Canada," said Tony Daily, general manager of Towne Automotive Group, which includes the Chrysler brand in its lineup.
Daily noted that the change applies only to vehicles starting with the 2003 models, so it serves as a warning to people considering buying vehicles in Canada and bringing them across the border for resale.
"Whether they are going to be able to enforce it or not, at least they're telling dealers what they intend to do," he said.
Last year, the region's nine Chrysler/Plymouth dealers sold 2,251 Chrysler/Plymouth units, ranking 11th among all brands and accounting for about 3 percent of all new vehicles sold, according to the Niagara Frontier Automobile Dealers Association.
Chrysler told its dealers a week ago it would no longer honor new car warranties for the cars intended for sale in Canada, said Dave Elshoff, a spokesman for Chrysler Group of DamilerChrysler AG, the first U.S. automaker to take such action.
"It's a growing problem," Elshoff said.
Consumers, particularly in border states such as New York, have been buying new Chryslers, Dodges and Jeeps priced in Canada at thousands of dollars off the U.S. price in a trade greased by the favorable exchange rate between the American and Canadian dollars, he said.
The cars, trucks and sport utility vehicles are marketed in Canada, but purchased and resold in the United States by auto brokers, used car dealers, some fly-by-night operations and legitimate dealers, Elshoff said.
This legal "gray market" can flourish especially in states along the Canadian border where transportation costs can be minimized. Chrysler estimates 200,000 gray-market cars and trucks from all manufacturers are imported from Canada to the United States annually.
"It's not limited to the border states," he said. "Certainly New York is a state that, sharing such a larger border with Canada, has a large number of these gray market vehicles. Michigan tends to get a few, but it's just as likely to find them in Texas, Iowa, the Midwest."
The New York state Consumer Protection Board is urging consumers to beware that the discount Chrysler they are considering may not carry a new car warranty.
"Consumers should be careful to make sure that the car or truck they are purchasing has an adequate warranty," said board Chairwoman May Chao. She urges consumers to ask dealers whether they will receive a manufacturer's warranty and where the car was originally purchased.
"If the dealer or some other third party offers an adequate, reliable warranty, then consumers may not be greatly affected by this change," Chao said of Chrysler's decision to revoke the manufacturer's warranty on the gray market cars and trucks.
Aftermarket warranties can be purchased, and they can still result in a price that's cheaper than the cost of the same model intended for sale in the United States, Elshoff said.
Chrysler is simply enforcing a longstanding policy and several automakers based in Japan already enforce similar policies, he said. Exceptions will be made for special circumstances, such as when a consumer who has bought a car in Canada moves to the United States.
Chrysler wants to curb the gray market to preserve the lower prices in Canada that fuel that market's sales, avoid undercutting the higher-price American market and to make sure models are purchased through dealers who can build a relationship for further sales while benefiting their service departments.
"It represents a sizable issue for all the auto manufacturers," Elshoff said. "It represents an issue not only because it does have bottom-line impact, but because it compromises our relationship with the customers and as much as we all invest in trying to retain customer loyalty, it throws a roadblock in the first step of building the relationship."
__________________
Ummm Goodtime, that article is over 4 years old...do you have anything current?
I would also like to point out, that this applies to "dealers" who are selling new cars they've imported into the US, not private citizens purchasing vehicles for their own use. In addition, the 3rd last paragraph states that exceptions will be made to that effect.
FYI: A new car warranty applies all over North America no matter where you bought it. For eg: If you drive your new Canadian car to FLA and it breaks down, if the vehicle is still under warranty you can take it to any authorized warranty repair centre and have it fixed.
I would also like to point out, that this applies to "dealers" who are selling new cars they've imported into the US, not private citizens purchasing vehicles for their own use. In addition, the 3rd last paragraph states that exceptions will be made to that effect.
FYI: A new car warranty applies all over North America no matter where you bought it. For eg: If you drive your new Canadian car to FLA and it breaks down, if the vehicle is still under warranty you can take it to any authorized warranty repair centre and have it fixed.
Just the facts
Found at the Canadian Border Services Agency website:
http://www.cbsa-asfc.gc.ca/E/pub/cp/rc4140/README.html
Bare bones:
The vehicle must meet the requirements of the CBSA, Transport Canada and the Canadian Food Inspection Agency before it can be imported.
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.
Effective November 1, 2005, the RIV program registration fee is CAN$209 in all provinces, except Quebec where it is CAN$224.
Generally, you do not have to pay duty on an imported vehicle that was manufactured in the United States, Canada or Mexico;
If your vehicle has air conditioning, you will have to pay an excise tax of CAN$100. You will have to pay additional excise taxes if your vehicle weighs more than 2,007 kilograms or 4,425 pounds.
The following example shows a breakdown of the customs duties and taxes assessed on a United States-manufactured automobile sold for export from the United States to a purchaser in Canada and imported in calendar year 2005.
Example 2005 model year automobile
purchase price(includes state taxes)...........................US$50,000.00
value for duty.......................................................CAN$60,000.00
(price converted to Canadian currency at current
rate of exchange ($50,000.00 x 1.20*))
duty at 0%......................................................................$00.00
excise tax on air conditioner..............................................$100.00
excise tax on excess weight...............................................$00.00
value for tax (value + duty + excise tax)..........................$60,100.00
GST ($60,100.00 × 7%)................................................$4,207.00
total cost....................................................................$64,307.00
total duties and taxes paid to CBSA...................................$4,307.00
In addition to the duties and taxes paid to CBSA at the time of importation, provincial or territorial taxes may also apply when you license your vehicle. For more information, contact a sales tax office in the province or territory where you will be registering the vehicle.
Some countries, including the United States, have requirements that you must meet before you can export a vehicle. Check with the customs authority in the country from which you intend to export the vehicle.
{This is my favorite part}If you arrive at a CBSA office and your vehicle does not meet the requirements of both the CBSA and Transport Canada, you must either export or destroy your vehicle under the CBSA’s supervision.
{Does this mean I have CBSA's approval to blow up my car as long as they get to watch? }
Found at the Canadian Border Services Agency website:
http://www.cbsa-asfc.gc.ca/E/pub/cp/rc4140/README.html
Bare bones:
The vehicle must meet the requirements of the CBSA, Transport Canada and the Canadian Food Inspection Agency before it can be imported.
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.
Effective November 1, 2005, the RIV program registration fee is CAN$209 in all provinces, except Quebec where it is CAN$224.
Generally, you do not have to pay duty on an imported vehicle that was manufactured in the United States, Canada or Mexico;
If your vehicle has air conditioning, you will have to pay an excise tax of CAN$100. You will have to pay additional excise taxes if your vehicle weighs more than 2,007 kilograms or 4,425 pounds.
The following example shows a breakdown of the customs duties and taxes assessed on a United States-manufactured automobile sold for export from the United States to a purchaser in Canada and imported in calendar year 2005.
Example 2005 model year automobile
purchase price(includes state taxes)...........................US$50,000.00
value for duty.......................................................CAN$60,000.00
(price converted to Canadian currency at current
rate of exchange ($50,000.00 x 1.20*))
duty at 0%......................................................................$00.00
excise tax on air conditioner..............................................$100.00
excise tax on excess weight...............................................$00.00
value for tax (value + duty + excise tax)..........................$60,100.00
GST ($60,100.00 × 7%)................................................$4,207.00
total cost....................................................................$64,307.00
total duties and taxes paid to CBSA...................................$4,307.00
In addition to the duties and taxes paid to CBSA at the time of importation, provincial or territorial taxes may also apply when you license your vehicle. For more information, contact a sales tax office in the province or territory where you will be registering the vehicle.
Some countries, including the United States, have requirements that you must meet before you can export a vehicle. Check with the customs authority in the country from which you intend to export the vehicle.
{This is my favorite part}If you arrive at a CBSA office and your vehicle does not meet the requirements of both the CBSA and Transport Canada, you must either export or destroy your vehicle under the CBSA’s supervision.
{Does this mean I have CBSA's approval to blow up my car as long as they get to watch? }
biog, PENN dealership wouldn't sell me the Toyota, when they learn I'm not U.S. citizen, when I tried to buy for U.S. LF who couldn't afford hefty new driver insurance. This was long time ago before free trade.
You're correct. Buff article is few year old. Toronto Star Wheels article is from few weeks ago, no links only printed copy.tboy said:Ummm Goodtime, that article is over 4 years old...do you have anything current?
The average new vehicle is 17% more expensive in Canada than it is in the US.
http://www.auto123.com/en/info/news/ourwriters,view,.spy?artid=64525&pg=1&author=3
http://www.auto123.com/en/info/news/ourwriters,view,.spy?artid=64525&pg=1&author=3
so is the consensus now is that it isnt worth the hassle and trouble of doing this? I am thinking of the 2006 Toyota Rav4, I got a price for the model I want at close to 40 grand here, I looked at it in the US at a dealership near Buffalo and it was close the 29 grand
It will be up to you to determine the numbers, as this is what it is all about.
At first look however it does seem like you will be able to save substantially. 11 grand isn't a number to scoff at, that's pushing 25% savings...When comparing the numbers just remember you will probably have to pay PST and GST on both vehicles. Also are you paying cash or financing? I don't know about any Bank that would lend you the money based on what MIGHT happen to a vehicle not located or registered in Canada. If you have any other assets you could use that as security on the loan.
Check that transport canada website to see if the RAV4 can be imported before doing anything else.
I think your next step is to call and find out exactly what you have to do and get the straight poop from the people you will be dealing with at Canada Customs.
At first look however it does seem like you will be able to save substantially. 11 grand isn't a number to scoff at, that's pushing 25% savings...When comparing the numbers just remember you will probably have to pay PST and GST on both vehicles. Also are you paying cash or financing? I don't know about any Bank that would lend you the money based on what MIGHT happen to a vehicle not located or registered in Canada. If you have any other assets you could use that as security on the loan.
Check that transport canada website to see if the RAV4 can be imported before doing anything else.
I think your next step is to call and find out exactly what you have to do and get the straight poop from the people you will be dealing with at Canada Customs.
