what is needed at the US/Canada border?

[Alurra71]

He just got the newer vehicle less than a month ago he needs a vehicle to bring all of his stuff over for his work. So you don't think there is a Canadian car loan company that would take over a US one?

They wouldn't be taking it over. He would effectively need to get another loan to pay off the first loan in the US. If he does a car loan, they would want to verify the vehicle and such, and because it is a car in the US that would pose a difficulty. What about yourself? I know you don't drive, but you are a citizen. Are you able to secure a loan to purchase the vehicle? Yes, there might be some taxes involved at the border (maybe if in both of your names you can get it past CBSA?) but the alternative is much more bleak by the sounds of it.

 

[bunny82]

Ok, so there is no such thing as taking over US loans. Is is possible that a Canadian lender would loan him money to pay off the US loan? As for me I do drive, I just don't have a vehicle of my own. How would I apply for a car loan when I don't have a car? I am not sure what my chances would be for that, as I have student loan debt and lots of credit card debt and no income at this moment. Thanks.

 

[Alurra71]

Ok, so there is no such thing as taking over US loans. Is is possible that a Canadian lender would loan him money to pay off the US loan? As for me I do drive, I just don't have a vehicle of my own. How would I apply for a car loan when I don't have a car? I am not sure what my chances would be for that, as I have student loan debt and lots of credit card debt and no income at this moment. Thanks.

Yeah, that might pose an issue for you. Depending on how much the loan is, can your husband take out a personal loan in the states to pay off the balance to the car people? He doesn't need permission from anyone as long as he owns the car out right and paying off the loan with a different loan would achieve this. He would NOT be able to use the car as collateral to secure the loan however so he would need to be able to pull a loan in a larger sum by the sounds of it.

 

[anonymoose]

Honestly, if there is no emotional value attached to that car, in his position I would just sell it in the US and buy a new one in Canada. That would be the most straightforward way.

What everyone here is saying is that if you want to import the car, you need to own it at the time you cross the border. Based on what the bank told you, your husband most likely does not own the car at the moment so he cannot import it.

I'm assuming that you have a lease contract. That means that the bank owns the car and lets your husband use it in return for monthly payments. Once it is paid off, your husband will take ownership of it.

If you really want to bring the car, you need to get however much $$$ that is still outstanding, buy the car from the bank/leasing company and then import it to Canada.

If you do not have enough $$$, get a loan that is not tied to the car and use it to buy the car from the leasing company, then import it.

 

[bunny82]

He said he doesn't think he would be able to get a loan that big. Are there actual Canadian car loan lenders that you know of that would be willing to loan him money to pay off the Wells Fargo balance in the US once he is here with the car on the 2 month permission? I know the car will be American, but I thought there might be companies that would do that?

Also, is it a rule that you must export/import your vehicle upon reaching the border to move here?

 

[anonymoose]

I think because this is a relatively unusual situation for which most banks dont have a standardized process they will probably not want to do that. The effort of researching the risks involved would probably cost them more than the profit they can make on the contract.

Your best bet would be to try to get a loan that is not tied to the car. Then you can buy the car and actually own it and do whatever you want with it. That loan doesn't have to be from a Canadian bank, it can also be from a US institution.

But as I said, just sell the car and buy a new one in Canada.

 

[Ponga]

Not to mention the conversion from USD to CAD. He'd end up with a Canadian loan for abut 30% more than the U.S. amount. While this would not be an issue today, it would be when the CAD gets closer to par with the USD.

Sell/transfer the car to someone in the U.S. and get wheels in Canada.

 

[anonymoose]

I just googled around a bit and found this, for instance:

https://www.poweredbygrow.com/

There seem to be options but they probably come with *censored word* terms. Ideally you should talk to your own bank or a person there who you trust and that knows about your history.

 

[Ponga]

I just googled around a bit and found this, for instance:

https://www.poweredbygrow.com/

There seem to be options but they probably come with *censored word* terms. Ideally you should talk to your personal bank or a person there who you trust.

The problem is that his U.S. credit history does not transfer to Canada; he'll be starting all over again with no credit (better than bad credit I suppose).

 

[anonymoose]

The problem is that his U.S. credit history does not transfer to Canada; he'll be starting all over again with no credit (better than bad credit I suppose).

Good point. Maybe he can get a loan from his previous US bank? I don't know, however, if they appreciate it if he will then permanently leave the country lol. But then the thing about the exchange rates that you just said would apply.

But then again there are banks that give you loans with bad or no credit history. It's just that if your history is bad they will charge insane interest rates that cover the risk.

 

[bunny82]

I really appreciate you guys helping me and looking into this, thanks a lot. I guess we are really going to have to sit down and brainstorm this situation... it would be great if we could get a loan to pay off the US loan balance... we wouldn't be so adamant about him driving here and bringing his things if it weren't for him needing all of his (expensive) tools for work here.

 

[Ponga]

I really appreciate you guys helping me and looking into this, thanks a lot. I guess we are really going to have to sit down and brainstorm this situation... it would be great if we could get a loan to pay off the US loan balance... we wouldn't be so adamant about him driving here and bringing his things if it weren't for him needing all of his (expensive) tools for work here.

Why can't he bring the car to Canada (with his stuff) and then return to the U.S. to sell/transfer the vehicle...then fly back to Canada? Since he does NOT have to actually live in Canada right away (for the first two years to be exact) to maintain his PR, this should be a viable option, IMHO.

 

[Snowisland]

even if he paid the car off, you need the title in hand so better see how long it takes to get the title once you pay it off.

 

[bunny82]

Yes Ponga that is definitely an option. We were thinking of this too. We shall see... thanks.

 

[bunny82]

Good point Snowisland.