HyperMike

Hi everyone,

I'm looking for a gut-check from the collective wisdom here! In my search for my first Porsche I'm looking at both cars here in Canada as well as US market cars. So much of the discussion on Rennlist and elsewhere about prices/values is US based that I've found myself taking CAD market examples and "converting" them to a US market equivalent. My math would take the CAD$ Price adjusted for 6% Duty that would be paid upon importing US car into Canada, then adjusted for 5% GST payable upon importation, finally adjusting that result by the prevailing FX rate for US$/CAD$ to give me what that Canadian car would have to cost in the US to make it worthwhile considering.

For example, lets say I'm looking at 996TT here in Canada listed for CAD $65,000:

$65,000/1.06/1.05/1.31= US $44,581

So, excluding the cost of paperwork and transport and/or my time that Canadian car would be comparable on a price basis with the same car in the US market at US $44.5K.

I'm interested in my fellow Canadians' thoughts on this. Does this make sense to everyone? Am I thinking about this correctly?

Cheers,
Mike

Jamie140

That's about right.

And it seems to be about how seller's are pricing their more popular used cars.

It may be tougher on resale as a previous US car. Harder to check it out beforehand also.

lowbee

I'll gladly pay a little bit of a premium for a Canadian Car (excluding QC) over a US car

HyperMike

I agree that there are some downsides to looking for cars in the US...getting it checked out is definitely one of them although I'm not sure it's much harder if the car is in Texas vs Ontario (I'm in Calgary!). I think the logistics of getting it here are the biggest issue.

Agreed it's probably harder to resell in Canada if it was an ex-US car but it is easier to resell back into the US if it had been previously registered in the US. I'm thinking of venues like Bring A Trailer where most bidders are US and re-importation would be easier if the car were ex-US.

Interesting perspective lowbee...I'm genuinely curious as to why that is? Mechanically a US and CAD car are virtually identical (gauges notwithstanding).

Interested to hear other perspectives too!

Cheers,
Mike

lowbee

Mainly for resale cause there are a lot less flooded cars to worry about plus I like having 300 on my speedometer and the Maple leaf on the door sticker

Crazy Canuck

I have a US GT3. Selection was way better in US when I bought it. That was the primary reason. The 94 cent dollar at the time was icing on the cake.
I won't sell it but if i did it could go right back to the US and would in fact be more attractive to US buyers. Lots of US cars here in Canada. It wouldn't bother me for the right car.

Pags993

^ +1 All 5 Pcars I have owned over the years started life as U.S. cars. The 2 I sold found buyers quickly in Canada but there was also some decent US interest as well.

docdrs

red996

That is a phrase I never thought someone from Ontario would ever utter.

Mr. Turtles

Hey Mike, you have to pay tax in Canada as well so that part is not needed. Some provinces have much higher HST like Ontario at 13% HST. Still no PST in Alberta I assume.

I posted very similar data about GT3 pricing in another forum (i.e. why GT3's in Canada are priced the way they are and that the FX is large part of the price increases here in Canada.)

Most Porsche's are cheaper in Canada then the US when you factor all the costs in. Porsche has still not adjusted for the large FX difference. Thanks Porsche!

Muskoka

If the 1.05 in your equation is sales tax, than you shouldn't include it. You pay the 1.05 on the $65k Canadian car as well. So it's either include the 1.05 and the $65k is $68.25k, or don't include it and keep the other side of the equation at $65k.

There are also a few inspections that cost a few hundred bucks that you need when bringing a car in from the US.

Imo000

The duty a bit more than 6% and there are other fees too (A/C, RIV and so on) but those are not that much.

HyperMike

Yep...we may not have any jobs here anymore but we don't have any PST or HST...just plain ol' GST!

I play both sides of the fence here...born in Ontario but live in Alberta...I actually love both places although I'd probably die without access to the mountains!

It may be different on other provinces but certainly in Alberta GST is only payable if you are buying from a registered dealer. If it is a private party transaction there is no GST as the seller doesn't have a GST number and likely wouldn't collect enough GST to have to remit to it to the Feds. When you bring a car across the US/CAD border GST is always payable based on the CAD$ value of the vehicle converted from the US$ selling price at the FX in effect on the date you cross the border. So you are correct about ignoring GST in my calcs if I'm buying from a dealer but it does change the math if I'm buying from a private party. Is HST/GST payable on private party transactions in other provinces?

I had thought the Duty was 6%...I'll have to review the rules to double check. You're also correct that there are miscellaneous costs that I've ignored but probably should include to do a true "apples-to-apples" comparison.

I appreciate the input!

Cheers,
Mike

gsxr_fvr

Interesting thread. I think the only reason i'd be inclined towards U.S market is the vast inventory of GT cars compared to Canada.

Question on the duty: Does it vary by the country or Origination? For eg: I often see 6% for Porsches i.e German's . Would it be a different % for Lamborghini/Ferrari originating from Italy?

BIG smoke

More cars imported and available in the USA.
Fewer cars here, and most of the newer cars, 2-4 years old are tightly held by the Porsche Cartel (PORSCHE KARTELL)
But more Porsche's put away for the winter here... (not mine thought) so possibly great shape and lower miles.
I too, would spend a little more here, than have a speedo in the wrong language.
The right car sure... for the right price?
Going to florida this weekend. Who knows what I'll find. I maybe eating crow.
Oh- And happy pie day! π or 22 ÷7 day