All manufacturers charge Canadians higher MSRP than they do for Americans for the same product. Why? Because Americans don't put up with crap like us Canadians.
Importing a car from the US into Canada isn't the hard part...
it's getting a US dealer to sell you the car in the first place.The best thing Canadians can do is stop buying new cars until the price reflects the dollar parity. Take the
Canadian built Civic EX-LCanada $25,747 MSRP
USA $21.345 MSRP
That's a whopping $4402 price difference for a car built in Canada and shipped to the USA.
The best thing to do is avoid the Canadian dealerships and try to find a used American car and bring it into Canada. Here is the process:
US CAR PURCHASE PROCEDURE
US Car Purchase Proc.doc rgc, 13-6-07
Remember, you’re dealing with US & Canadian government departments (federal, state & provincial) – follow the procedures exactly, ask for help when you’re unsure, and thank them for their assistance. This will keep things moving smoothly.
Background Work:
1) Confirm vehicle is on Canadian RIV list of acceptable vehicles.
2) Identify prospective dealers and e-mail their Internet Sales Managers. State what you want to buy, that you need temporary tags, and that you will not pay state tax (because you will be registering the vehicle in Canada). Also state you will make a deposit by credit card and wire the full amount before picking up the car. Be fully open about your intentions – some will say they can’t sell without charging state tax (and offer to let you choose the state if you can provide an address), while others will accommodate you.
- there is significant variation among manufacturers with respect to their approach to American dealers selling to Canadians; you can learn about this from various Internet forums: Honda Canada will not honour the American warranty; Subaru doesn’t care and the warranty is good for Canada & the US; Toyota will honour the warranty but makes it difficult for American dealers to sell to Canadians
- it is definitely easier re Toyota if you have use of a US address (relative, friend, mail forwarding firm)
Making the Deal
3) Negotiate price/package with chosen dealer (usually starts by e-mail and ends by phone). Pay deposit by credit card. Get VIN Number. Get bank info for wire transfer of payment (bank, branch, a/c, FAST #; dealer accounting dept. usually has this info, and sales manager likely won’t).
- some dealers may want to fax you the Buyer’s Order, for you to sign and fax back; others are happy with your credit card deposit ($500 should be sufficient)
- For Toyota, you can negotiate a good Extended Care Agreement price (about 40% discount). Often the Finance or Payment person looks after the ECA plans and he/she is the one you need to identify and negotiate with. Discounting is standard, and list/discount info is available on the Internet.
- watch the exchange rate (it can vary by 0.5% during the day) and service fee (0.5- 2.5%); my credit card charges 2.5% above the official exchange rate while my Investment account only charges 1% (for $25K or more); the best I’ve seen on the Internet is 0.5% (the person had access to the exchange service used by his firm)
- Allow a few business days for the wire transfer to arrive (it won’t be instantaneous!).
Picking Up Your New Vehicle
4) Arrange for insurance on vehicle: dealer will need this for purchase agreement; commencement date is based on when you plan to pick up the vehicle. Your insurance company only needs the VIN and will fax you coverage (mine sent a temporary coverage card), followed by a pink slip in the mail.
5) Phone manufacturer and get a ‘Recall Clearance Letter’ from them (you can have them fax a copy and mail you the original). For Toyota US, call 1-800-331-4331. RIV website has a complete list of manufacturer contact info at
http://www.riv.ca/english/Recall_Contacts_on_RIV.pdf . You should fax a copy of this letter to the Registrar of Imported Vehicles (1-888-642-9899) after Customs has filed Form 1 (see below); RIV accepts the faxed version (no need to wait for original to arrive in mail).
a. written on official company letterhead;
b. states the 17 digit Vehicle Identification Number (VIN) of the vehicle;
c. states, "this vehicle has no outstanding recalls."
6) Select your border crossing. Through the internet, obtain phone # and fax # for department that handles vehicle exports (use US Customs website; fax #’s change periodically). Phone them and get specific directions (their office is set up for commercial traffic, not for consumers; the regular traffic lanes will bypass them).
- verify hours of operation and fax #; watch for holidays when they will be closed
- US Customs website:
http://www.customs.gov/xp/cgov/export/export_docs/motor_vehicle.xml7) After payment has arrived at dealership, have them immediately fax a copy of the Certificate of Origin to US Customs at the border crossing you have chosen. Ensure the VIN is written, by black marker, across the top. Their rules insist on having this at least 72 hours before you and your vehicle arrive (so plan your travel accordingly). THIS IS A PACING ITEM
- best to call and verify they have the document in their system (e.g., Queenston can receive upwards of 200 faxes a day re vehicle export)
- ask dealer to keep the transmission receipt for you (just in case)
Travel to dealership and complete the paperwork. Buy the extended care plan, if you want it. Before leaving dealer with vehicle, check that you have title document (original Certificate of Origin, transferring ownership to you), temporary registration and temporary state license plates, and sales receipts. The vehicle should have the manufacturer’s compliance label on the driver’s doorframe (has date of manufacture, manufacturer, statement of compliance with regulations, etc.).
At the Border
9) US Customs: Have Certificate of Origin stamped with a US export stamp at US side. Take this to Canada Customs.
- it’s possible for them to incorrectly enter the VIN in their system; best if you have the original fax transmission slip, showing when the copy was faxed and to what fax #; if you have checked with them previously, you’ll know they have your vehicle in their system
10) Canadian Customs: Produce your title documents, registration and sales receipts. A Customs Officer will complete Vehicle Import Form – Form 1. You sign this. Pay RIV fee of $209 ($195 + GST) + A/C tax ($100) + GST on vehicle (credit card only.)
- Canada Customs asks about the compliance label (may go outside to check)
After Vehicle in Canada
11) Within 10 days (usually), RIV will send Form 2 (Inspection Form), detailing modifications needed (for our Sienna, this was simply a check list re bilingual stickers, operational air bags, daytime running lights, etc.). Make an appointment and go to your local Canadian Tire for inspection (Waterloo CTC simply wants you to drop by – they don’t book appointments for this). Bring both Form 1 & Form 2. If vehicle modifications are needed, you should be able to arrange these with CTC. You have 45 days to get these done. CTC will stamp Form 1 for you and return the completed Form 2 to RIV (you can ask for a copy).
- I suggest you contact RIV after 5 days (1-888-848-8240) and check on the status of your submission. Your case # is given at the top right of Form 1. You can also provide them with your e-mail and they will promptly e-mail Form 2 to you if your submission is complete
- your RIV fee covers the cost of the CTC inspection
- it only takes CTC minutes to do the inspection and paperwork (it takes longer to await your turn)
12) Present stamped Form 1, Certificate of Origin, and Canada Customs payment form to provincial licensing authority for registration & plates. Pay PST, license plate, and any other charges.
- MOT license office in Ontario keeps the Certificate of Origin, and uses the Value for Duty shown on your Canada Customs form to calculate PST
13) Within about one week the Canadian Certification label will arrive, with instructions on where to affix it to your vehicle.
Detroit
Name: Fort Street Cargo Facility
Phone: (313) 226-3139
Fax: (313) 226-5347
Operational Hours: Twenty Four (24) Hours A Day
Seven Days A Week (7)
Lewiston, NY (Queenston-Lewiston Bridge)
Phone:
Fax: 716-285-3565 (as of 23-5-07)
Open M-F 8am-4pm
Get to clearance facilty by first entering the Customs area from the left lane of 190, just past exit 25; cross over the road to the warehouse facility; park at front by the red door at go in to the Vehicle Export Office
Driving Television Stories
An excellent series providing general information and considerations about buying a car in the US and bringing it to Canada. As they point out, the costs won’t necessarily offset the benefits.
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http://drivingtelevision.com/CarReviewVideos.php?ccID=2o Canadian vs US pricing
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http://drivingtelevision.com/CarReviewVideos.php?ccID=23o US: home of the cheaper car
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http://drivingtelevision.com/CarReviewVideos.php?ccID=441o Buying Cars from the US #1
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http://drivingtelevision.com/CarReviewVideos.php?ccID=452o Buying Cars from the US #2
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http://drivingtelevision.com/CarReviewVideos.php?ccID=456o Buying Cars from the US #3
Useful Websites & Forums
SiennaClub.org, Canadian Sienna’s
http://www.siennaclub.org/forum/index.php?s=3bce7ed63747a5a4598c99db57eb9343&showforum=22Edmunds TownHall: Importing Car into Canada from US
http://townhall-talk.edmunds.com/direct/view/.ef18c13/116Edmunds TownHall: Toyota Sienna Groups & Discussions
http://townhall-talk.edmunds.com/direct/view/ed_displayMakeModelRelatedDiscussions!make=Toyota&model=SiennaRedFlagDeals.com: New Cars from US up to 20% Cheaper
http://www.redflagdeals.com/forums/archive/index.php/t-307601-p-2.html
