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

[yodheydhara]

I know there are third parties which provide loan to new comers (heard their ads on FM)....they may charge 0.5 to 1% more interest rate...but I cant give you the exact answer for this as I never used that service...

Ok, sounds good. I am thinking the car dealers themselves should have some financing options available too...

 

[lifeonedge]

Hey bud,
If you're fairly knowledgeable about a car, then absolutely go buy a used car. If not, I'd suggest buy a new one that will last you for a number of years. You can even negotiate a 0% interest for almost 4 - 5 yrs. I know Nissan dealership does in Alberta. Not sure in Ontario.

here is a link to get a free credit report - http://www.cbc.ca/news/canada/how-to-check-your-credit-report-1.1185975

Cheers

 

[yodheydhara]

Hey bud,
If you're fairly knowledgeable about a car, then absolutely go buy a used car. If not, I'd suggest buy a new one that will last you for a number of years. You can even negotiate a 0% interest for almost 4 - 5 yrs. I know Nissan dealership does in Alberta. Not sure in Ontario.

here is a link to get a free credit report - http://www.cbc.ca/news/canada/how-to-check-your-credit-report-1.1185975

Cheers

Thank you for your input buddy, I am planning to buy a used car for now as I am getting inputs from a lot of friends about what used cars can be bought. However, this sounds like a really good option too!!

 

[yodheydhara]

Finally, Bank of Montreal agreed to give me a loan for 72 months! Thank you all for your valuable inputs!

 

[Apurv7164]

Finally, Bank of Montreal agreed to give me a loan for 72 months! Thank you all for your valuable inputs!

Hi @yodheydhara

what are the things you considered when deciding on selling car in US? I am in similar situation, planning to move around January - February 2018. I bought brand new sonata here in US this year only and if I sell it now, I will be losing around 4k. I appreciate your inputs.

 

[yodheydhara]

Hi @yodheydhara

what are the things you considered when deciding on selling car in US? I am in similar situation, planning to move around January - February 2018. I bought brand new sonata here in US this year only and if I sell it now, I will be losing around 4k. I appreciate your inputs.

Hi Arpuv,
These are the factors that I considered before deciding to sell my car:
1. My car was 2014 Mazda 5 - I checked on the RIV website (https://www.riv.ca/ImportingAVehicle.aspx) whether my car make and model needed any changes as per Canadian regulations. In my case, I would have had to change the headlight assembly to include day time running lights. As per the Mazda dealer that I went to for servicing, they mentioned that I would need the whole assembly to be changed. That was an additional cost.
2. Other costs for importing a vehicle would be - a) the amount you pay to get an approved agent to do AES filing and generate an ITN number for your vehicle (this is only 50 bucks), but with the hassle of sending all the documents minimum 3 days before the date of your border crossing at the corresponding US border control, it wasnt worth it for me.
3. Then there is import duty that you will be paying on your vehicle once you enter Canada. You will need to go to the nearest Canadian Tire Corp location to get the import process completed along with the changes in your vehicle to meet the Canadian regulations. The amount varies by the model and make of the vehicle, but you might want to contact RIV and find out if its possible to get an estimate beforehand.
4. I had thought that it would be easier to buy a used or a new car over here in Canada. Long story short, I was able to buy a used car.
5. Consider the liquid funds that you will have when you decide to sell the car over there. You dont have to necessarily buy a new / used car on cash value, if you are able to get loan. At least that one of the factors that I had considered.

With these factors in mind, I decided to sell my car in US and get another one over here.

However, there is some additional information that I would like to provide you if you are deciding to sell your car in US and buy another one over here:
1. Selling the car in US - is your car on loan? Or did you buy it from cash? If it is on loan then you need to clear your title as the bank will be the first lien holder in your car title. A dealer will be able to help you out with more details because the rules around title and lien holders might be different with different states. If you have paid off the loan, you need to have the title showing you as the primary owner and zero liens on the car, or you need to have the lien release document from the bank showing as a proof that you have cleared the loan.
2. Buying a car in Canada - its easy if you are planning to buy a new / used with full cash. If you are looking for a loan, you will need to show proof of income. This will be difficult if you do not have a job in hand when you arrive here.

Hope this information helps.

 

[yodheydhara]

What interest rate did you get and also what documents did they require? Just income proof or anything else? Thanks

As far as the documents go, you will need to provide the proof of income and proof of your status in Canada. Usually that would be your PR card (I am presuming you would have the PR card by then?). Else you can check with the dealership if the they and Bank would accept the copy of your COPR. Additionally you will be needed to provide your S.I.N. number for them to conduct an initial credit check.

The rate of interest is high, considering I had little credit history. I will get you the exact ROI shortly.

 

[yodheydhara]

Thanks, No I am moving there on Work Permit.So I would have that along with my SIN & Proof of Income(Paystubs).

I expect high interest but curious to know how high is high?

well, the fact that you will be moving here on work permit will also play a role in determining the rate of interest I believe. The rate of interest I got for a used car (for my car) is 6.99%.
This is pretty high. In my limited experience in the US, somewhere around 4 to 5% is the ideal rate.

 

[karthik2479]

Thanks, No I am moving there on Work Permit.So I would have that along with my SIN & Proof of Income(Paystubs).

I expect high interest but curious to know how high is high?

If you are moving on work permit and not on PR and can show this with documentation, then you do not need to import the vehicle and can bring it into Canada for temporary use. See this link
http://www.tc.gc.ca/eng/motorvehiclesafety/safevehicles-importation-visitors-1334.htm
However, you have to consider whether your bank will allow the loan to be active knowing allthe while that the vehicle is in Canada plus your US insurance may not be valid since its only valid for upto 30 days outside the US- so check with the insurer.

 

[karthik2479]

Hi Arpuv,
These are the factors that I considered before deciding to sell my car:
1. My car was 2014 Mazda 5 - I checked on the RIV website (https://www.riv.ca/ImportingAVehicle.aspx) whether my car make and model needed any changes as per Canadian regulations. In my case, I would have had to change the headlight assembly to include day time running lights. As per the Mazda dealer that I went to for servicing, they mentioned that I would need the whole assembly to be changed. That was an additional cost.
2. Other costs for importing a vehicle would be - a) the amount you pay to get an approved agent to do AES filing and generate an ITN number for your vehicle (this is only 50 bucks), but with the hassle of sending all the documents minimum 3 days before the date of your border crossing at the corresponding US border control, it wasnt worth it for me.
3. Then there is import duty that you will be paying on your vehicle once you enter Canada. You will need to go to the nearest Canadian Tire Corp location to get the import process completed along with the changes in your vehicle to meet the Canadian regulations. The amount varies by the model and make of the vehicle, but you might want to contact RIV and find out if its possible to get an estimate beforehand.
4. I had thought that it would be easier to buy a used or a new car over here in Canada. Long story short, I was able to buy a used car.
5. Consider the liquid funds that you will have when you decide to sell the car over there. You dont have to necessarily buy a new / used car on cash value, if you are able to get loan. At least that one of the factors that I had considered.

With these factors in mind, I decided to sell my car in US and get another one over here.

However, there is some additional information that I would like to provide you if you are deciding to sell your car in US and buy another one over here:
1. Selling the car in US - is your car on loan? Or did you buy it from cash? If it is on loan then you need to clear your title as the bank will be the first lien holder in your car title. A dealer will be able to help you out with more details because the rules around title and lien holders might be different with different states. If you have paid off the loan, you need to have the title showing you as the primary owner and zero liens on the car, or you need to have the lien release document from the bank showing as a proof that you have cleared the loan.
2. Buying a car in Canada - its easy if you are planning to buy a new / used with full cash. If you are looking for a loan, you will need to show proof of income. This will be difficult if you do not have a job in hand when you arrive here.

Hope this information helps.

Your point # 3 above - I believe as a PR you are exempt from the import duty and the GST/HST - someone can confirm this. As a PR, you are allowed one time duty free import of vehicle. The import duty applies when a Canadian resident purchases a vehicle in the US under NAFTA and brings it in - even that is 0 if your vehicle is manufactured in the US - which is identified based on the first digit of the VIN number

 

[APPNOV2014NY]

That's what I am planning to do i.e. bring the car without importing. I own the car and there is no outstanding loan on the car. Only thing i need to check insurance as you mentioned. Also need to see is how good is resale in Canada for American cars.

If you are establishing residence in Canada on temporary work permit then you will need to get Car registered in Canada after X months and get Canadian license

You won't need to export car from USA but you will need to "temporarily" import it in Canada. Canadian equivalent of DMV ( for ex - SAAQ in Quebec) will take your Car title + USA Registration and will give you Canadian Registration. There is no concept of title in Canada. Please ensure that you have scanned copy of title before giving it to Canadian authorities. You will need it while returning "permanently" to USA with Car.

You might be able to exchange your USA license with Canadian license. I exchanged my CT license with QC one.

I do not think you can sell your "temporarily imported" car in Canada ( at least not in first year). If able to sell, then you will get decent price as used Cars are ted expensive in Canada as compared to USA.

 

[yodheydhara]

The last auto loan I took in US was at 1.74% which was pretty low but this helps, thanks

1.74 is good! My last loan in the US for a new car was 4.6% - the bank gave me this rate and the duration of 36 months only because my H1B petition was valid only till 3 years from that date.. Strange but true.

 

[yodheydhara]

I do not think you can sell your "temporarily imported" car in Canada ( at least not in first year). If able to sell, then you will get decent price as used Cars are ted expensive in Canada as compared to USA.

I blieve I read it earlier somewhere that selling a US car in Canada may not fetch a good price. Although I agree that the rate of interest as well as the price for a used car in Canada is a tab bit high.

 

[yodheydhara]

Your point # 3 above - I believe as a PR you are exempt from the import duty and the GST/HST - someone can confirm this. As a PR, you are allowed one time duty free import of vehicle. The import duty applies when a Canadian resident purchases a vehicle in the US under NAFTA and brings it in - even that is 0 if your vehicle is manufactured in the US - which is identified based on the first digit of the VIN number

This is good info! During the time I was planning to move, I wasnt aware of this. Is this information available somewhere on the RIV website? Per my knowledge, as a PR we are exempt from the GST/HST but that is something that we will have to claim when we file our taxes? Not sure if it will be the same for import duty?

 

[APPNOV2014NY]

Thanks, Yes I have a scanned copy of my Title & Registration. I wanted to check the scenario where say after a year or more i get a PR. Looks like I can import the car at that time provided its eligible (which it is).So I think that will work out well.

I am just wondering that considering the prices & the fact that it would be a while before I build up my credit history in Canada, does it make sense for me to buy a newer vehicle (at this point it looks like i might move to Canada after 5-6 months), the only catch is no warranty in Canada on USA vehicles.

Looks like Ford does honor USA warranty in Canada.

https://www.apa.ca/CanadianWarrantyinformationonnewcarsboughtintheUS.asp