Notices

A twist on buying a US car

Thread Tools
 
Search this Thread
 
Old 04-11-2010, 02:12 PM
  #1  
comatb
Rennlist Member
Thread Starter
 
comatb's Avatar
 
Join Date: Mar 2002
Location: Ontario, Canada
Posts: 520
Likes: 0
Received 0 Likes on 0 Posts
Default A twist on buying a US car

So a US citizen emigrating to Canada. He wants a new car that he will buy in the US (cheaper) and bring into Canada. His old car could be traded in but I am interested in buying it. What is the best way to do this? What are the in's and out's of this process including costs? Your help is appreciated.

Bill
Old 04-11-2010, 02:33 PM
  #2  
JimV8
Rennlist Member
 
JimV8's Avatar
 
Join Date: Nov 2002
Location: Ontario
Posts: 26,346
Received 495 Likes on 354 Posts
Default

The attached link describes it in detail. It the car is less than 15 years old and originates from the USA the RIV gets involved. You pay the cost to get it here. Fax a copy of the ownership to the US border service at the point of export at least 48 prior to arrival and get approval from the US to export then go the Canadian side, declare the car, pay 6% duty and 5% GST and get an RIV copy 1 (I think) . Get the Daytime DrivingLights done, seat belt anchors and bilingual safety stickers and go to the RIV certification centre, ( Canadian Tire). With the papers stamped you then go to the provincial license office and follow all the usual procedures for licensing a vehicle.
http://www.riv.ca/ImportingAVehicle.aspx
Old 04-11-2010, 02:54 PM
  #3  
comatb
Rennlist Member
Thread Starter
 
comatb's Avatar
 
Join Date: Mar 2002
Location: Ontario, Canada
Posts: 520
Likes: 0
Received 0 Likes on 0 Posts
Default

Thanks Jim 7 but the US citizen is bringing the car with him as a personal possession and I would not be involved in the process of importing the vehicle. I don't know if there would be any duty payable in this case. The car is a 2006 Cayman S. Would there be a rule on when he could sell the car once it is here in Canada? I assume it would still need to go through the RIV process once here before it could be licensed in his name. Then I would have to pay PST to transfer the ownership to me.

Bill
Old 04-11-2010, 02:58 PM
  #4  
Onami
Rennlist Member
 
Onami's Avatar
 
Join Date: Jan 2005
Posts: 5,044
Received 848 Likes on 530 Posts
Default

If you google your questions, you'll find the answers easy enough. I believe he can't sell any car that he brings in with him for a year...
Old 04-11-2010, 02:58 PM
  #5  
My993C2
Three Wheelin'
 
My993C2's Avatar
 
Join Date: Mar 2010
Location: Calgary, Alberta
Posts: 1,597
Likes: 0
Received 0 Likes on 0 Posts
Default

I don't think you need bilingual safety stickers. At least I didn't.

I was living in Colorado from 1998 through 2005 working as a temporary NAFTA TN-1 worker and when I returned to Canada I exported from the US, imported into Canada my 1999 US Jeep Wrangler. Yes there was the duties to be paid, GST, I had to have my headlights modified. Nothing had to be done to my seat belts, but I assume they were compliant and while my Jeep is a Miles + MPH odometer/speedometer, I do have KPH on the speedometer. But not once did the lack of bilingual safety stickers come up. Of course I did all of this in British Columbia. Maybe the closer you get to Quebec the more of an issue it becomes?
Old 04-11-2010, 03:01 PM
  #6  
comatb
Rennlist Member
Thread Starter
 
comatb's Avatar
 
Join Date: Mar 2002
Location: Ontario, Canada
Posts: 520
Likes: 0
Received 0 Likes on 0 Posts
Default

Thanks I will call RIV and Transport Canada and also check on the duties.

Bill
Old 04-11-2010, 03:52 PM
  #7  
AM993
Rennlist Member
 
AM993's Avatar
 
Join Date: Nov 2005
Location: Toronto, Ontario (Canada)
Posts: 1,638
Received 4 Likes on 2 Posts
Default

I have done it when I moved from the US to Canada. Brought 2 cars (993 and VW Gti VR6). No RIV process, no compliance letter, no modification (no DRL, no French stickers,...). And best of all: no Duty, no PST, no GST). I went to the local MTO office with the Customs stamped documents (I still have copie if uou are interested), the e-test and safety test documents and registered the cars. I sold both cars since then.
In your case, the ideal situation would be for the US citizen to bring the car to Canada (same way as I did) and you buy it from him locally...
What you may want to verify is that there is no clause that stops the new migrant from selling the car within a certain period of time after he moved to Canada without paying Duty, GST and PST. In Europe for instance, the migrant cannot selll the car within 2 years of landing in his/her new country. If one sells the car before 2 years, then import Duty and taxes are due. After 2 years, no problem. But I am not sure if Canada has such a rule.
Old 04-11-2010, 04:01 PM
  #8  
My993C2
Three Wheelin'
 
My993C2's Avatar
 
Join Date: Mar 2010
Location: Calgary, Alberta
Posts: 1,597
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by AM993
But I am not sure if Canada has such a rule.
You bring up something I did forget. Even though I am a Canadian citizen (born here), I was instructed that I could not sell my US Jeep for a certain time period (I think it may have been 2 years) from when I imported it into Canada. Now I am wondering ... I don't think I had to pay duties on the Jeep. I would have to dig up my paperwork to verify this.
Old 04-11-2010, 04:28 PM
  #9  
Torontoworker
Drifting
 
Torontoworker's Avatar
 
Join Date: Mar 2009
Location: West of Mosport!
Posts: 3,372
Received 59 Likes on 26 Posts
Default

Originally Posted by AM993
What you may want to verify is that there is no clause that stops the new migrant from selling the car within a certain period of time after he moved to Canada without paying Duty, GST and PST. In Europe for instance, the migrant cannot selll the car within 2 years of landing in his/her new country.
FYI: Your classed as a 'settler' not a 'migrant under the act.
Old 04-11-2010, 04:39 PM
  #10  
comatb
Rennlist Member
Thread Starter
 
comatb's Avatar
 
Join Date: Mar 2002
Location: Ontario, Canada
Posts: 520
Likes: 0
Received 0 Likes on 0 Posts
Default

Thanks so much Arnaud. I will check into the time stipulation that may be applicable. If it is doable I certainly agree that it would be much better for him to import the car and then have me buy it.

Thanks again,

Bill
Old 04-12-2010, 11:54 AM
  #11  
comatb
Rennlist Member
Thread Starter
 
comatb's Avatar
 
Join Date: Mar 2002
Location: Ontario, Canada
Posts: 520
Likes: 0
Received 0 Likes on 0 Posts
Default

The car can not be sold in Canada for one year or the owner must pay all duties and taxes before selling it. Then the buyer would pay again. It seems that it would be cheaper to buy the car in the US and import it in the usual way and pay ing once.

Bill
Old 04-12-2010, 04:28 PM
  #12  
theiceman
Team Owner
 
theiceman's Avatar
 
Join Date: Aug 2005
Location: Cambridge Ontario Canada
Posts: 26,955
Received 1,111 Likes on 794 Posts
Default

regarding the jeep .. you may not have payed duty if it was built in the US under NAFTA. But the Porsches are built in Germany and may be subject to duty ..
Old 04-13-2010, 06:35 PM
  #13  
96C4S
Burning Brakes
 
96C4S's Avatar
 
Join Date: Jan 2005
Location: Toronto Ontario Canada
Posts: 784
Likes: 0
Received 0 Likes on 0 Posts
Default

How well do you know the owner?
Old 04-13-2010, 08:07 PM
  #14  
comatb
Rennlist Member
Thread Starter
 
comatb's Avatar
 
Join Date: Mar 2002
Location: Ontario, Canada
Posts: 520
Likes: 0
Received 0 Likes on 0 Posts
Default

Originally Posted by 96C4S
How well do you know the owner?
Not well enough for him to keep it in his name and have him be liable if that is your idea. Or do you have another idea?

Bill
Old 04-13-2010, 08:58 PM
  #15  
fryd
Burning Brakes
 
fryd's Avatar
 
Join Date: Jul 2004
Location: The Big Smoke
Posts: 1,191
Likes: 0
Received 0 Likes on 0 Posts
Default

Maybe you could lease it from him for a year? He retains title and you get the car. But then he has to be willing to finance you for a year. Steve Goodbody might be able to help you with something.



Quick Reply: A twist on buying a US car



All times are GMT -3. The time now is 12:08 AM.