IMPORTING A CAR FROM THE USA INTO CANADA FAQ
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1) Why bother importing a car from the US?
- Partially of the recent strength of the Canadian dollar, many models are significantly less expensive in the US than in Canada. Also some models/trims are available in the US but not in Canada.
2) Can any car from the USA be imported?
- No, check the list at
http://www.riv.ca. While many cars can be imported without any or with very little modifications, some might need modifications like the addition of Daytime running lights, and/or child tether anchors
3) Do I have to pay duty and taxes?
- There is no duty on cars built in North America. Cars from elsewhere will be charged 6.1% duty. You have to pay GST when you import the vehicle and PST when you register your vehicle as per your Province's regulations.
4) How do I know if I can import a car without paying duty?
- If the VIN starts with a number, it's made in North America and can be imported duty free. If they VIN starts with a letter, it's made elsewhere in the world and you will be charged 6.1% duty.
5) IS this only for new cars?
- Any car that can be imported (check point #1) can be imported new or used - does not make any difference and the process is the same (other than things like safety checks and clean air checks which really have nothing to do with importing the car).
6) Will the new car warranty be valid in Canada?
- This varies by manufacturer and you should contact the one for the car you wish to import. Some manufacturers (e.g. Subaru, Toyota) will honor the warranty, others will honor the warranty but under a few conditions (e.g. Nissan), while others void the warranty if the car is not registered in the US first (e.g. Honda)
7) Do I need a US address?
- No, but some dealerships (e.g. Toyota, particularly those near the Canadian border) may not want to sell you a car if you don't register it in the US first. In general dealerships very close to the Canadian border may not be as willing (because of pressure from the manufacturer) to sell to Canadians and you may have to travel further South.
I have a friend / relative / whatever with an address in the US, can I or they buy the car in the US and register it there before importing it to Canada?
- Yes but you may be charged sales taxes in the US and in Canada if you do that. Different states have different tax rates (and some none) so it may be possible to do it there. It has been confirmed that Canadian buyers pay NO sales tax in certain states like New York but are charged sales tax in Michigan. Also, there are certain conditions under which Customs Canada will allow you to import the car without paying taxes but this is only for those who are out of Canada for extended periods of time.
9) Can I get financing for a car purchased in the US?
- You cannot get financing through the dealership or manufacturer. You may be able to get a car loan from your bank but probably only once the vehicle is imported into Canada. Some Canadian banks are now offering US loans.
10) Can anyone do this for me?
- There are importers / brokers that will handle shipping and importing however they do charge a significant amount. Individuals can do it for themselve for the cost of a few hours time and the $200 RIV fee.
11) Are there any drawbacks from having a US car?
- Generally no. There are some inconveniences such as having an odometer in miles rather than kilometers and having the 'principal' display (outer ring) in the speedometer in MPH rather than KPH. It may be more difficult to resell an 'US' vehicle and you may get less for it. Dealer supplied bonuses (e.g. free oil changes for the first year) are usually not valid in Canada. Some automatic climate control and computer data information can also be in Imperial measurements. Some vehicles can easily switch between Imperial and Metric measurements while others cannot.
