Driving car from US to Canada, and back to US without importing.

[APPNOV2014NY]

Thanks, this is super helpful as it has an exhaustive list

Btw What is this site about? Is it an automotive journalistic site?

I guess I am trying to see how authentic is this website

I will also try to cross verify the information but still tremendously informative.

Never bothered to check their purpose. Looks more or less like Broker services for buying/maintaining new/used car. Definitely not a journalistic site.

 

[APPNOV2014NY]

Found something interesting on Honda Canada

https://www.honda.ca/owners/faqs/vehicle-movement

FYI, Honda in Quebec did not accept my USA warranty in 2015. I did not argue with them as I was due to return to USA in few months and maintenance was not urgent.

 

[yodheydhara]

Yeah DCU which is a credit union has really attractive rates. I wonder if there are credit unions in Canada which, like USA, provide cheaper loans.

I am sure there are. Honestly, I did not do an exhaustive research on the loan part. You can find them if you do some exhaustive research. In my case I was in a hurry to get a car as soon as possible, but I will be looking refinance my car as soon as I build some credit.

 

[Kuchbhi]

I am sure there are. Honestly, I did not do an exhaustive research on the loan part. You can find them if you do some exhaustive research. In my case I was in a hurry to get a car as soon as possible, but I will be looking refinance my car as soon as I build some credit.

@yodheydhara can you please share your research about importing a US car into Canada?
You mentioned that we will be exempt from GST/HST ?

 

[email.6633]

I exported my car from USA to Canada.

Reasons:
1. If i sell the car, the resale value will be less because of depreciation. The balance amount will have to be used for paying the loan.
2. After coming to Canada, you have to buy a new car. No credit history. Interest rate will be more.
3. Monthly 400-600 CAD will have to be paid as EMI.
4. Insurance is too high for new Car.
5. Zero tax paid at border (since new immigrant). If buying a new car, you have to pay tax.
6. Initial few days i dont have to take rental car. It was very helpful for the first 20 days with the car. You have lots of options to visit apartments for rent.

Downsides:
1. Export and import process is a headache.
2. Car lein needs to be closed and you should have title.
3. The car should be eligible for driving in Canada and should clear safety inspection.

 

[Kuchbhi]

I exported my car from USA to Canada.

Reasons:
1. If i sell the car, the resale value will be less because of depreciation. The balance amount will have to be used for paying the loan.
2. After coming to Canada, you have to buy a new car. No credit history. Interest rate will be more.
3. Monthly 400-600 CAD will have to be paid as EMI.
4. Insurance is too high for new Car.
5. Zero tax paid at border (since new immigrant). If buying a new car, you have to pay tax.
6. Initial few days i dont have to take rental car. It was very helpful for the first 20 days with the car. You have lots of options to visit apartments for rent.

Downsides:
1. Export and import process is a headache.
2. Car lein needs to be closed and you should have title.
3. The car should be eligible for driving in Canada and should clear safety inspection.

Thanks @email.6633
I agree 100% with your reasons. When I purchased my used 2011 Subaru Forester - i meant to keep it. I am surprised to know that new immigrants don't need to pay tax.
Is it possible for you give me an overview of the export / import process? (additionally, share your number if you would rather prefer talking over whatsApp)

 

[yodheydhara]

@yodheydhara can you please share your research about importing a US car into Canada?
You mentioned that we will be exempt from GST/HST ?

My decision was more for personal financial reasons. I was getting a good price for my car. Selling the car would give me some liquid cash to use in case of emergency as I was stepping into a new country (though not very different from the US, but still). Getting a different car here on loan would mean that the I could use a part of the amount I received from the car sale as downpayment to bring my EMI down, hence overall interest too.

But overall, I agree with what @gmail.6633 has provided in his post. If you are okay with the downsides he has mentioned and have a different view point than what I just wrote above, you might want to import the car.
One additional point - you will need to know is that the resale value of cars imported into Canada is comparatively less. Though I have not researched much on this part, you might want to consider this also while making a decision.

 

[email.6633]

https://www.canadavisa.com/canada-immigration-discussion-board/threads/steps-to-export-the-vehicle-from-usa-to-canada.528187/

I have listed the details here...

Thanks @email.6633
I agree 100% with your reasons. When I purchased my used 2011 Subaru Forester - i meant to keep it. I am surprised to know that new immigrants don't need to pay tax.
Is it possible for you give me an overview of the export / import process? (additionally, share your number if you would rather prefer talking over whatsApp)

 

[email.6633]

You should not sell the car for 3 years for not suffer loss. One important thing is that you have to switch to winter tires during winter. Hence that cost will also incur (Around 800-1000$). So if you sell the car before that, those tires will also be useless.

My decision was more for personal financial reasons. I was getting a good price for my car. Selling the car would give me some liquid cash to use in case of emergency as I was stepping into a new country (though not very different from the US, but still). Getting a different car here on loan would mean that the I could use a part of the amount I received from the car sale as downpayment to bring my EMI down, hence overall interest too.

But overall, I agree with what @gmail.6633 has provided in his post. If you are okay with the downsides he has mentioned and have a different view point than what I just wrote above, you might want to import the car.
One additional point - you will need to know is that the resale value of cars imported into Canada is comparatively less. Though I have not researched much on this part, you might want to consider this also while making a decision.

 

[yodheydhara]

You should not sell the car for 3 years for not suffer loss. One important thing is that you have to switch to winter tires during winter. Hence that cost will also incur (Around 800-1000$). So if you sell the car before that, those tires will also be useless.

Agree!
In my case, the previous owner already had the winter tires that were available with the dealer so they gave those to me at no charge. So one advise to everyone looking for a used car would be to see if they also include the winter tires already.

 

[Kuchbhi]

Can anyone help me with the tax calculation?

We pay Import tax (GST) on current value of car right? E.g. I purchased a used car 2011 Model in 2015 for US$20,000. In Dec 2017 the KBB value is US$13000 so we pay tax on US$13000 (let's say 5% of $13,000)? @email.6633 mentioned that Import (GST) is only for brand new cars and not used cars?
Can you please share that link on CBSA or RIV website where it mentions that?

Also, about winter tires if I plan to import/land in June - July would I still need winter tires then?

 

[APPNOV2014NY]

Which Province? I believe Winter tires are mandatory only in Quebec. In Ontario and other provinces they are recommended only, right?

This is right but then it's dangerous to drive in snow without winter tires and at least few auto insurers offer credits for winter tire usage.

 

[email.6633]

All insurance companies are mandated to give 5% discount for winter tires.
Ontario, it is optional (not mandatory). But it makes a difference.

I don't know about Canada but in my 5 plus years of driving in snow experience, unless you have a rear wheel drive car or are in a city where snow cleaning doesn't happen, one can manage easily with a front wheel drive or All wheel drive cars (Ofcourse with All season tires and not summer tires. I have heard from my colleagues that they clean up very well in GTA so almost no one in my office uses winter tires.

Btw I am not undermining the important of snow tires at all, they are definitely useful, all i am trying to say is that those who have not driven in snow, should drive and then take a call instead of just expecting it to be a mandatory expenditure. The Insurance rebates are often less than the price of the snow tires.

 

[email.6633]

When a immigrant is coming for the first time, he can import the car without paying any tax. Just basic some 300$ needs to be paid in the border.
Its in RIV website.
But for yearly registration, yes we have to pay the amount.

Can anyone help me with the tax calculation?

We pay Import tax (GST) on current value of car right? E.g. I purchased a used car 2011 Model in 2015 for US$20,000. In Dec 2017 the KBB value is US$13000 so we pay tax on US$13000 (let's say 5% of $13,000)? @email.6633 mentioned that Import (GST) is only for brand new cars and not used cars?
Can you please share that link on CBSA or RIV website where it mentions that?

Also, about winter tires if I plan to import/land in June - July would I still need winter tires then?

 

[yodheydhara]

I don't know about Canada but in my 5 plus years of driving in snow experience, unless you have a rear wheel drive car or are in a city where snow cleaning doesn't happen, one can manage easily with a front wheel drive or All wheel drive cars (Ofcourse with All season tires and not summer tires. I have heard from my colleagues that they clean up very well in GTA so almost no one in my office uses winter tires.

Btw I am not undermining the importance of snow tires at all, they are definitely useful, all i am trying to say is that those who have not driven in snow, should drive and then take a call instead of just expecting it to be a mandatory expenditure. The Insurance rebates are often less than the price of the snow tires.

To add to your comment, I have driven in snow in the US too, with all season tires - I have lived in Michigan, Indiana and Minnesota. In US, I never felt the need for these tires. When I moved here I too felt that these were a bit of hype here. However, here in Ottawa it snows a lot more compared to any of these places I have lived before. Also, I changed the tires since the car already came with winter tires from the previous owner. But I now see that winter tires are indeed very useful for a place like this.
So the decision on whether or not to use winter tires may be based on where you are going to live in Canada.