BC Business
How to import a US car to Canada.With a bit of planning, importing cars from the US to Canada can be a pleasant – and financially rewarding – experience.
Thanks to the strong Canadian loonie, importing cars to Canada from the U.S. has once again become a very good idea. The Canadian dollar is regularly worth more than the U.S. greenback, there is a friendly free-trade deal between the two countries and the price-savings can be in the order of 20 or 30 per cent.
The Canadian dollar is regularly worth more than the U.S. greenback, there is a friendly free-trade deal between the two countries and the price-savings can be in the order of 20 or 30 per cent.
Last year, B.C. car-shoppers imported 25,000 U.S. cars into the province, two-thirds of them model-year 2006 or newer. Nationally, the figure was 160,000, according to the federal Registrar of Imported Vehicles (RIV).
But there are numerous paperwork requirements, and how to import a car from the U.S. to Canada can look daunting to the would-be importer.
At the recent Vancouver International Auto Show, B.C. car enthusiasts were well aware of the price difference for the same vehicle in the U.S. and Canada. Some had explored the idea of importing a car to Canada, such as Andrew and Jocelyn Snih of Prince George, who were looking for a late-1960’s model of muscle car.
“It was $10,000 or more cheaper, maybe even $15,000,” said Andrew. “It’s ridiculous that we pay so much for the same goods, when the dollar is the same.”
“The sticker-price in the U.S. is substantially cheaper,” added Jocelyn. Both say they intend to go to the U.S. for their dream car, before shopping in Canada.
A Kelowna man says he went a step further, importing a U.S. car to Canada four years ago. He bought a 2007 Honda Ridgeline pick-up in Texas, and then shipped it B.C.
“I thought I saved about $20,000,” said the man, who declined to give his name because some of his friends were car-dealers. “It was simple to do,” he added. “I would do it again.”
1. RESEARCH: You must first check if the U.S. car you want is admissible into Canada. For the lists, go to the Registrar of Imported Vehicles and Transport Canada. It will also show you what modifications will be required for Canada. You will need to get a Recall Clearance Letter.
2. BUYING: When in the U.S., do a background check on the history of the vehicle, by using such services as Carfax, CarProof and AutoCheck. Ask the dealer for the vehicle’s inspection reports. Get a manufacturer’s recall clearance letter.
Once you have purchased the car, fax the auto export sheet report to U.S. Customs at the border crossing you wish to cross, and phone to confirm receipt. You must wait at least 72 hours before bringing the car to the border.
3. AT THE BORDER: After clearing the vehicle title with U.S. Customs, take it the Canada Border and Services Agency (CBSA) to import your car to Canada, with originals of title, registration, sales receipts, statement of compliance and the recall clearance letter. If all is in order, you will fill out Form 1 . You also must pay the GST on the vehicle before it’s allowed into Canada.
4. BACK IN CANADA: The car now has to be registered and insured here. Send the Form 1 and the recall clearance letter to RIV, and they’ll send back the Form 2 that states which modifications need to be done. Once that is complete, ICBC will insure the vehicle.
Jas Kaila, who conducts seminars on importing U.S. vehicles to Canada for CBSA, says importers sometimes fail to get all the documentation to U.S. Customs, or don’t wait the necessary 72 hours before showing up at the border. “They are going to turn you away,” says Kaila.
People regularly fail to get the recall clearance letter, he says, only to find out at the border that they can’t import the vehicle. And it’s up to the owner to dispose of the vehicle.
Kaila advises U.S. car-buyers who are bringing more than $10,000 down to the U.S. to inform Canadian border officials before crossing. “We don’t care how much you take,” says Kaila. “We just need to track this.”
And he advises buyers to get ‘binder insurance’ for the vehicle, which insures it from the U.S. to home, along with personal insurance coverage. And each state requires a ‘trip permit’ for a vehicle passing through its territory, which can be obtained at the local government office.
Kaila says the free public seminars he conducts in Vancouver are so popular that they’re booked solid. To attend, book at www.cbsa.gc.ca.
Mark Francis, ICBC’s director of provincial vehicle registration and licensing, says the biggest issue is the history of the vehicle, with many cases of vehicle titles being ‘washed’, or re-registered as a clean title in another state. In recent years, flood-damaged Katrina vehicles were being intercepted at the border. “You could save yourself the problem of buying a car there, and not being able to register it here,” says Francis.
With new vehicles, Francis says some car manufacturers do not honour U.S. warranties in Canada. And it’s important to do your homework on cars requiring modifications, such as daytime running lights. Even when buying a car here in B.C., it’s important to be on the lookout for ‘curbers’ – cars that have been imported from the U.S. that may have been previously damaged or salvaged. “Those history reports are invaluable for finding out the background of the vehicle,” says Francis.