Buying a car in the US can save money and offer increased availability of specific makes and models, along with a broader range of interior and exterior colors, body trim details, and other options not found on Canadian new car lots. Purchasing power is also increased with a strong Canadian dollar to US dollar exchange.
While this trend to buy US vehicle inventory is popular, real savings are only realized when choosing from the luxury and premium categories. The savings margin isn’t there for the more common mid-sized and compact cars.
The most significant obstacle in buying US vehicles will be the automobile manufacturers and their dealers. Some forbid US auto sales to Canada, while others have sales conflicts on specific models and limited editions.
Certain U.S. vehicles will require updates to their safety equipment to comply with Canadian Safety Standards. These updates are needed before the vehicle’s inspection by the Canadian Registrar of Imported Vehicles. Expect routine changes such as adding daytime running lamps, child safety seat anchors, an immobilizer, as well as bilingual and metric labeling on the speedometer and airbags.
Please note that discount finance packages, rebates, and other incentives offered by the dealer or manufacturer will be forfeited when you import the vehicle. Having the car serviced in Canada under the manufacturer’s warranty can also be problematic. This is an area for price negotiation and consideration of aftermarket warranties to replace or supplement the manufacturer’s warranty.
Warranty issues sometimes make buying a pre-owned vehicle more appealing. High-end, well-maintained, 1-, 2-, and 3-year-old, pre-owned, premium, and luxury US vehicles generally offer the best transportation value and a lower import price difference.
Since the vehicle is not being titled in the US, no taxes are due in the US. The buyer receives a new manufacturer’s title and bill of sale, a no-recall letter, and a temporary registration, which allows you to drive the vehicle to Canada (with approval from the insurance company). The buyer must fax a copy of the title to the specified US Customs vehicle processing office at the border crossing for approval. After three full business days from the date of faxing, the vehicle, accompanied by the original title and sales paperwork, can cross the border.
When the vehicle passes Canadian Customs, the usual Canadian federal and provincial taxes apply. Additionally, expect to pay excise tax on some options and the Registrar of Imported Vehicles fee. If the vehicle isn’t made in North America, an import duty is added to the fee schedule.