Moving a financed car from USA to Canada

[Mounika92]

Hi,

My PR got approved recently and I am planning to move to Canada permanently. But I bought a Mercedes recently in finance. I won't be able to pay off the complete amount to the finance company and own it before I move to Canada.

1) Is there a way I can move my car to Canada?
2) since I don't have Canadian credit history, will any banks consider by US Credit history and offer me auto loans for a better interest rate?
3) OR Are there any banks I can take auto loan in USA and transfer that loan to CANADA if the bank exists in both the countries.

Any help in this regards is much appreciated.

 

[scylla]

Hi,

My PR got approved recently and I am planning to move to Canada permanently. But I bought a Mercedes recently in finance. I won't be able to pay off the complete amount to the finance company and own it before I move to Canada.

1) Is there a way I can move my car to Canada?
2) since I don't have Canadian credit history, will any banks consider by US Credit history and offer me auto loans for a better interest rate?
3) OR Are there any banks I can take auto loan in USA and transfer that loan to CANADA if the bank exists in both the countries.

Any help in this regards is much appreciated.

The company financing your car will have to agree to let you take it with you to Canada and provide a letter confirming that they are giving you authorization to do so. Generally speaking, it's very rare that a lender will allow you to do this. Transferring the loan from a US to a Canadian bank is typically not possible either. Based on the experiences on this forum, you need to pay off the financing so that you own the car free and clear - or you need to arrange for someone to take over your lease in the US (i.e. leave the car behind) or sell the car back to the dealer.

 

[Mounika92]

The company financing your car will have to agree to let you take it with you to Canada and provide a letter confirming that they are giving you authorization to do so. Generally speaking, it's very rare that a lender will allow you to do this. Transferring the loan from a US to a Canadian bank is typically not possible either. Based on the experiences on this forum, you need to pay off the financing so that you own the car free and clear - or you need to arrange for someone to take over your lease in the US (i.e. leave the car behind) or sell the car back to the dealer.

Is there a way I can get auto loan in Canada using my US credit history(ror lower interest rates) and pay off the loan in USA using that amount?

 

[scylla]

Is there a way I can get auto loan in Canada using my US credit history(ror lower interest rates) and pay off the loan in USA using that amount?

I don't think you can get an auto loan in Canada for a car that's currently in the US and hasn't been imported yet.

 

[Mounika92]

I don't think you can get an auto loan in Canada for a car that's currently in the US and hasn't been imported yet.

Planning to import the car and then get the loan.

 

[scylla]

Planning to import the car and then get the loan.

Maybe I'm not understanding. Your lender in the US will not allow the car to be imported to Canada with a loan amount still outstanding. So you would need to pay off the US loan before you can import the car. Again, I may not be understanding what you are asking.

 

[Svanbavel1]

I am in the same process and already have done most of the research and spoken with many people... We have 2 vehicles that have been financed and we will have to pay one off and the other i will sell before going next month. We have loans with VW and Ford and both said they will not provide a letter giving permission to take our vehicles across the boarder to export. Look up Newcomers banks in canada. There are a couple that offer the ability to get car loans through them for newcomers. I am in process of even getting mortgage and they will use my Experian Credit report to help get approved. Once we move into our home then I will buy a vehicle there.

By any chance do you have an American Express CC? If so, when you move to any country, they will transfer your CC to that country to start building credit immediately. My husband did it when he moved here from Canada and it was the greatest thing in the world! Hope this helps a little!

 

[Mounika92]

Maybe I'm not understanding. Your lender in the US will not allow the car to be imported to Canada with a loan amount still outstanding. So you would need to pay off the US loan before you can import the car. Again, I may not be understanding what you are asking.

My lender told me that they will give a letter that I can take my car to Canada for 30days after I remove. I am trying to see in these 30days if I can refinance from any canada bank that can give me loan based on my credit report.

 

[Mounika92]

My lender told me that they will give a letter that I can take my car to Canada for 30days after I remove. I am trying to see in these 30days if I can refinance from any canada bank that can give me loan based on my credit report.

After I move*

 

[Mounika92]

I am in the same process and already have done most of the research and spoken with many people... We have 2 vehicles that have been financed and we will have to pay one off and the other i will sell before going next month. We have loans with VW and Ford and both said they will not provide a letter giving permission to take our vehicles across the boarder to export. Look up Newcomers banks in canada. There are a couple that offer the ability to get car loans through them for newcomers. I am in process of even getting mortgage and they will use my Experian Credit report to help get approved. Once we move into our home then I will buy a vehicle there.

By any chance do you have an American Express CC? If so, when you move to any country, they will transfer your CC to that country to start building credit immediately. My husband did it when he moved here from Canada and it was the greatest thing in the world! Hope this helps a little!

Thank you so much for sharing your experience. I have to pay $60k to pay off my loan as its a brand new vehicle I bought, so I am looking for banks that can offer loan using my american credit history. It would be very helpful if you can share the couple banks you were talking about that can provide me car loans.

I do have American Express Credit Card, I think that will be the first I will to transfer it to Canada when I love there. Thanks a lot for the information.

 

[Capsho]

Thank you so much for sharing your experience. I have to pay $60k to pay off my loan as its a brand new vehicle I bought, so I am looking for banks that can offer loan using my american credit history. It would be very helpful if you can share the couple banks you were talking about that can provide me car loans.

I do have American Express Credit Card, I think that will be the first I will to transfer it to Canada when I love there. Thanks a lot for the information.

Hello Monique,

I am in a similar situation. Can you please let me know how did you manage this. Since this is an older thread, I am assuming you are already well settled in Canada. Please do help me out in knowing how did you solve the whole thing.

 

[S@m_aziz]

Hello Monique,

I am in a similar situation. Can you please let me know how did you manage this. Since this is an older thread, I am assuming you are already well settled in Canada. Please do help me out in knowing how did you solve the whole thing.

Hi !! Am in the same situation as well, can you pls tell me what you did ?

 

[21Goose]

Hi !! Am in the same situation as well, can you pls tell me what you did ?

You need a clear title to export/import the car. You either pay off the loan with money you have, or get a new personal loan in Canada (this will be extremely difficult for new immigrants), or sell the car back to the dealer/find someone to take over your lease in the US.

The odds that she got a 60k (!!) loan in Canada shortly after moving is practically nil. Doesn't matter what your US credit score is, no lender is giving a new immigrant a 60K personal loan (it would have to be a personal loan since you can't get an auto loan for a car that wasn't imported).

 

[S@m_aziz]

You need a clear title to export/import the car. You either pay off the loan with money you have, or get a new personal loan in Canada (this will be extremely difficult for new immigrants), or sell the car back to the dealer/find someone to take over your lease in the US.

The odds that she got a 60k (!!) loan in Canada shortly after moving is practically nil. Doesn't matter what your US credit score is, no lender is giving a new immigrant a 60K personal loan (it would have to be a personal loan since you can't get an auto loan for a car that wasn't imported).

Thanks for your reply. Do you might know any banks who would give a loan to new immigrants.

 

[21Goose]

Thanks for your reply. Do you might know any banks who would give a loan to new immigrants.

You can safely assume that no one is going to give you more than a couple of thousand as a loan. How much are you looking for?