Financed Car / Debts after moving to Canada?

[mike2007]

Hi,

My wife and I just completed and are submitted our PR paperwork for Family Class. I live/work in the US currently and have US debts (including my financed car). I still owe a decent chunk of money on the car and I won't be able to pay it off in full within the next 12 months. We estimate current wait times for my PR and sponsorship approval to be ~12 months from now.

My questions are:

Since I'll be physically changing my address to Canada - what do I do with my financed car? I can't register it in Canada legally because I can't import it due to the loan on the car, correct? Do I have to pay it off? The only thing I can think of is maybe register it in my parents name and make payments until it's paid off, let them either drive it or hold it and buy a used car cash and start fresh in Canada...

I'm going to still work in the US and for a US company until I can find work in Canada that pays better, until then I plan to commute across the border daily (it's not far). What happens to my US debts? I know they don't transfer and I could just not pay anything and start fresh in Canada with Canadian Credit, but paying US taxes and working for a US company I'm obviously not going to do this since they can take money from my check and file a lawsuit on me...

Thanks for any help

 

[fkl]

I am pretty sure you would still be able to take it along. As long as the payments are uninterrupted with the bank / financing company and they have your updated info, they shouldn't have any problems.

In order to import, they probably would provide you with whatever documentation is needed. Just contact them and ask that i am planning on moving to Canada and need documentation to take vehicle along.

 

[NetMecca]

I agree with the previous post. Should be able to. I also agree talking to the finance house is the best way to start.

 

[PMM]

Hi

I am pretty sure you would still be able to take it along. As long as the payments are uninterrupted with the bank / financing company and they have your updated info, they shouldn't have any problems.

In order to import, they probably would provide you with whatever documentation is needed. Just contact them and ask that i am planning on moving to Canada and need documentation to take vehicle along.

1. It is very likely that the lender will NOT authorize the export of the car, as then they have no control over the asset. Without their permission, you will not be able to export it to Canada.

 

[scylla]

Hi


1. It is very likely that the lender will NOT authorize the export of the car, as then they have no control over the asset. Without their permission, you will not be able to export it to Canada.

I agree with the above. Based on the experiences we've seen on this forum, the export will be denied.

 

[gprasad.n]

I am currently in the process of exporting my car to Canada. I called the bank and they didn't allow me to take it. Lien free car is one of the requirements for exporting the car unless your bank provides you a letter to take it to Canada and register it there while you still owe them. Also, make sure you pay it off at least 30 - 45 days in advance before you start your exporting process, as (not all) some banks may take up to 30 - 45 days to send you the lien clearance letter, without which the export will not be allowed.

 

[fkl]

I agree with the above. Based on the experiences we've seen on this forum, the export will be denied.

That's interesting. Thanks for correcting me.

I have moved a leased one across provinces (though with in Canada) and at that time i asked them since there might be prospects of moving internationally at some point and i was still planning on continuing. They said its possible with financing, which was the base of my opinion.

 

[mike2007]

Thanks for the replies.

So I guess I'm screwed then? I may have to just sell it and take a hit. What about the US debt? Does that transfer over or do I get a clean slate in Canada? I plan to continue to pay it off since I only have about $9,000 in credit card debt.

 

[fkl]

Thanks for the replies.

So I guess I'm screwed then? I may have to just sell it and take a hit. What about the US debt? Does that transfer over or do I get a clean slate in Canada? I plan to continue to pay it off since I only have about $9,000 in credit card debt.

Credits are treated separately in both countries. Your US one would stay and you would continue to pay that.

Canada would be a new one. Though i dont know if credit reporting agencies can / or do look up files internally, since several of them such as equifax have both US and Canadian operations.

What i know for sure is that you do not get any benefit of having past Canadian credit in the US

 

[gprasad.n]

Thanks for the replies.

So I guess I'm screwed then? I may have to just sell it and take a hit. What about the US debt? Does that transfer over or do I get a clean slate in Canada? I plan to continue to pay it off since I only have about $9,000 in credit card debt.

You can apply for a cash loan in some bank (in US before you leave your job here) that is equivalent to your balance on car payment and pay it off, that way your car is loan free and can be exported. You can finish your cash loan over time. However, interest rate will be more for the cash loans. Your homework is to compare the loan interest rates for closing the car with personal loan and exchange rate to pay off your cash loan with your Canadian salary vs selling your car in US and the interest rate for getting a new car loan in Canada and other factors etc...

 

[CDNPR2014]

Thanks for the replies.

So I guess I'm screwed then? I may have to just sell it and take a hit. What about the US debt? Does that transfer over or do I get a clean slate in Canada? I plan to continue to pay it off since I only have about $9,000 in credit card debt.

your US credit does not follow you to canada. when you move here, your credit starts at 0 and you will have to take steps to start building it in canada.