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WOW ---- New and used cars from US up to 30% cheaper - Read post #1

Poll: Are Canadian cars overpriced

  • Total votes: 335. You have voted on this poll.
I have no voice, Canadian Dealers/Manufacturers are taking advantage of the Canadian consumer
 
112
33%
In most cases, new cars purchased in the US are almost always thousands cheaper
 
149
44%
I owe no one a living, competition is good. Thank you NAFTA!
 
61
18%
With the exchange rate factored in, Canadian prices are roughly the same
 
6
2%
With the exchange rate and financing, Canadian prices are cheaper - Buy Canadian!
 
7
2%

Poll ended at Dec 28th, 2006 1:46 pm

Deal Fanatic
Jul 4, 2004
7430 posts
4677 upvotes
Ottawa
stevedask wrote: Below is the response from RIV - This looks like another hurdle to jump now when importing!
Appears this new requirement as of Oct. 2 2014 totally cuts off the ability for an individual Canadian citizen from being able to do what is required to export a vehicle and forces one to get a 3rd party involved (at a cost) as A Canadian will have to look into a customs broker now to file this Electronic exporting paperwork.

Response form RIV I received today:

Good day,


As per our understanding, AES must be filled out by an American party. Should you require assistance with this, you may contact a customs broker.
If you have any questions or would like to know more, please go to about AES.

________________________________________
Do not edit any text below this line. The following content is provided for historical purposes and will not be retained.
________________________________________

First name: Steve
Question
========
The new export rules that are now in effect require me to file EEI and you say to visit the U.S. Customs webpage 'About AES' and the Census AESDirect website for self-serve option to file EEI free of charge. Looks like I need to open a AES "account" to file EEI and the accounts are geared towards US companies only. Is there a way for a Canadian to file the EEI or set up an AES account?
________________________________________
This email was automatically generated. If you have any questions or concerns please call our toll-free number at 1-888-848-8240 or contact us via e-mail.
Did you confirm with the US POE that you actually need to file EEI? (RIV's website says you do but this would be a US requirement as has nothing to do with RIV). From my interpretation of the information on the AES website, it does not apply to vehicles being exported to Canada.

From the AES webiste (https://help.cbp.gov/app/answers/detai ... 1bQ%3D%3D) :
...There are instances when the EEI is not required. Some examples of when the EEI does not have to be prepared by an exporter and filed by the carrier are as follows:

Exporters sending shipments in which the ultimate destination is Canada, ...
Member
Nov 8, 2007
277 posts
60 upvotes
White Rock BC
michelb wrote: Did you confirm with the US POE that you actually need to file EEI? (RIV's website says you do but this would be a US requirement as has nothing to do with RIV). From my interpretation of the information on the AES website, it does not apply to vehicles being exported to Canada.

From the AES webiste (https://help.cbp.gov/app/answers/detai ... 1bQ%3D%3D) :
According to http://www.census.gov/foreign-trade/regulations/

the Canada exemption does not apply to vehicles.. (I assume, if purchased brand new in US, it is a used vehicle for export)

§30.36 Exemption for shipments destined to Canada.
(a) Except as noted in §30.2(a)(1)(iv), and in paragraph (b) of this section, shipments originating in the United States where the country of ultimate destination is Canada are exempt from the EEI reporting requirements of this part.
64
(b) This exemption does not apply to the following types of export shipments (These shipments shall be reported in the same manner as for all other exports, except household goods, which require limited reporting):
(1) Sent for storage in Canada, but ultimately destined for third countries.
(2) Exports moving from the United States through Canada to a third destination. (3) Requiring a Department of State, DDTC, export license under the ITAR
(22 CFR 120-130).
(4) Requiring a Department of Commerce, BIS, export license under the EAR
(15 CFR 730-774).
(5) Subject to the ITAR, but exempt from license requirements.
(6) Classified as rough diamonds under the 6-digit HS subheadings (7102.10, 7102.21, or
7102.31).
(7) Used self-propelled vehicles as defined in 19 CFR 192.1 of U.S. Customs and Border
Protection regulations, regardless of value or country of destination.



Self-propelled vehicle. ‘‘Self-propelled vehicle’’ includes any automobile, truck, tractor, bus, motorcycle, motor home, self-propelled agricultural ma- chinery, self-propelled construction equipment, self-propelled special used equipment, and any other self-pro- pelled vehicle used or designed for run-ning on land but not on rail.


In one example of a recent vehicle export, the added step was to go through a broker for the paperwork to register the EEI, an added cost of $200...
Deal Addict
Nov 18, 2012
1733 posts
727 upvotes
Toronto
Want to purchase a used car in usa, is it will trouble to fillup the paper work.
Simple is the best.
Deal Fanatic
Jul 4, 2004
7430 posts
4677 upvotes
Ottawa
03terminator wrote: According to http://www.census.gov/foreign-trade/regulations/

the Canada exemption does not apply to vehicles.. (I assume, if purchased brand new in US, it is a used vehicle for export)

§30.36 Exemption for shipments destined to Canada.
(a) Except as noted in §30.2(a)(1)(iv), and in paragraph (b) of this section, shipments originating in the United States where the country of ultimate destination is Canada are exempt from the EEI reporting requirements of this part.
64
(b) This exemption does not apply to the following types of export shipments (These shipments shall be reported in the same manner as for all other exports, except household goods, which require limited reporting):
(1) Sent for storage in Canada, but ultimately destined for third countries.
(2) Exports moving from the United States through Canada to a third destination. (3) Requiring a Department of State, DDTC, export license under the ITAR
(22 CFR 120-130).
(4) Requiring a Department of Commerce, BIS, export license under the EAR
(15 CFR 730-774).
(5) Subject to the ITAR, but exempt from license requirements.
(6) Classified as rough diamonds under the 6-digit HS subheadings (7102.10, 7102.21, or
7102.31).
(7) Used self-propelled vehicles as defined in 19 CFR 192.1 of U.S. Customs and Border
Protection regulations, regardless of value or country of destination.



Self-propelled vehicle. ‘‘Self-propelled vehicle’’ includes any automobile, truck, tractor, bus, motorcycle, motor home, self-propelled agricultural ma- chinery, self-propelled construction equipment, self-propelled special used equipment, and any other self-pro- pelled vehicle used or designed for run-ning on land but not on rail.


In one example of a recent vehicle export, the added step was to go through a broker for the paperwork to register the EEI, an added cost of $200...
I stand corrected and have confirmed with Buffalo CBP that vehicle exports do need to file EEI.
Member
Nov 8, 2007
277 posts
60 upvotes
White Rock BC
michelb wrote: I stand corrected and have confirmed with Buffalo CBP that vehicle exports do need to file EEI.
It adds a step and about $100-$200 by doing paperwork through broker, but you can still go get the car and bring it back yourself. There is a detailed writeup of the NEW process on the Ferrari forum..

The change was adding vehicles or excluding them from the Canadian exemption.
Deal Addict
Sep 18, 2008
1064 posts
355 upvotes
Woodbridge
Two years ago I imported new (dealership demo with 800 miles on it) limited toyota sienna to Canada. The car ended up costing me around 38 K including taxes. This top of the line car would have costed me at least 55 K here in Canada. Do the math. And my car is completely covered under Canadian Toyota warranty. I tell you one more thing. When you buy car which warranty is going to be carried over to Canada ask US dealership for additional warranty, even that is nearly half a price in US compared to Canada...
Member
User avatar
Sep 7, 2009
241 posts
34 upvotes
erexa wrote: Two years ago I imported new (dealership demo with 800 miles on it) limited toyota sienna to Canada. The car ended up costing me around 38 K including taxes. This top of the line car would have costed me at least 55 K here in Canada. Do the math. And my car is completely covered under Canadian Toyota warranty. I tell you one more thing. When you buy car which warranty is going to be carried over to Canada ask US dealership for additional warranty, even that is nearly half a price in US compared to Canada...
In most cases I've checked on, Canadian dealerships won't honour US extended warranties. Maybe Toyota is different, but certainly one thing worth checking.
Deal Fanatic
Jul 4, 2004
7430 posts
4677 upvotes
Ottawa
phlegm2 wrote: In most cases I've checked on, Canadian dealerships won't honour US extended warranties. Maybe Toyota is different, but certainly one thing worth checking.
Toyota Extended Warranty is valid in Canada (although most of the time my local dealership would make me pay up front and I had to file a claim with Toyota USA to get refunded). And the price is less than half that of Canada. When we bought our Toyota 7 year / 100,000 miles / $0 deductible Extended warranty for our Sienna, it cost us $880US, the same coverage from a Canadian dealer was over $2500. You also do not have to buy the extended warranty when you buy the car; you can buy it anytime while your original factory warranty is still valid (we bought ours over a year after the car had already been imported when we had about 3 months left on the original factory warranty).

I believe that a "Toyota Certified Pre-owned warranty" is not honoured in Canada (although you may still be able to apply for a refund).
Deal Guru
User avatar
Jun 28, 2003
12184 posts
5651 upvotes
Ottawa
Anyone has experience importing a Subaru Crosstrek? I saw a used one (2014) on Autotrader in MA that meets our criteria for $23,500 USD which is about $27,500 CAD using today's exchange rate.

A local dealer is offering something similar (in a colour that we don't particularly like) for a couple of grands more. We don't need to get 1 right away and can wait until the spring/summer for better exchange rate/better price as the 2015 model should be all out by then.
Deal Guru
User avatar
Nov 18, 2005
11955 posts
3699 upvotes
Kingston
canabiz wrote: Anyone has experience importing a Subaru Crosstrek? I saw a used one (2014) on Autotrader in MA that meets our criteria for $23,500 USD which is about $27,500 CAD using today's exchange rate.

A local dealer is offering something similar (in a colour that we don't particularly like) for a couple of grands more. We don't need to get 1 right away and can wait until the spring/summer for better exchange rate/better price as the 2015 model should be all out by then.
According to this US Subaru dealer the Crosstrek is built in Japan which means you'd have to pay the 6.1% import duty. That would eat up $1,700 of the difference. Doesn't sound like it would be worth the hassle in this case.
Deal Guru
User avatar
Jun 28, 2003
12184 posts
5651 upvotes
Ottawa
JWL wrote: According to this US Subaru dealer the Crosstrek is built in Japan which means you'd have to pay the 6.1% import duty. That would eat up $1,700 of the difference. Doesn't sound like it would be worth the hassle in this case.
Thanks. The Crosstrek is indeed built in Japan. We test-drove it yesterday and it's a very solid car/cross-over/subcompact SUV.

Too bad about the exchange rate but the good times don't last forever. We will keep our eyes peeled for 2013 or 2014 models on Kijiji or Trader.ca and see what comes up...
Deal Fanatic
User avatar
Nov 2, 2003
5265 posts
1623 upvotes
SK
canabiz wrote: Thanks. The Crosstrek is indeed built in Japan. We test-drove it yesterday and it's a very solid car/cross-over/subcompact SUV.

Too bad about the exchange rate but the good times don't last forever. We will keep our eyes peeled for 2013 or 2014 models on Kijiji or Trader.ca and see what comes up...
On Christmas they announced plans to keep production in Japan over a move to the US (weakened Yen).
Subaru scraps plan to shift Crosstrek production to U.S.
shopper-X
Member
User avatar
Sep 7, 2009
241 posts
34 upvotes
On the bright side, a gradual shift to zero duties on European cars should be phased in due to the agreement we signed last year ... eventually. That would at least eliminate that 6.1% on some nice brands.
Deal Guru
User avatar
Jun 28, 2003
12184 posts
5651 upvotes
Ottawa
Magoomba wrote: How do you guys find dealership demo models. Just call around or is there an aggregated search tool?
Not sure if you were asking the question in reference to my post but yes the dealer simply offered us the demo model on the spot.

Calling around is a good option, saving you time and hassle.
Member
User avatar
Sep 7, 2009
241 posts
34 upvotes
Just thought I'd post to keep this thread alive.

The US exchange now stinks.
There is an added electronic hoop to go through to export. (With a bit of extra cost.)
It has been a long winter.

[sniff]
[cry]

Still waiting for European duties (6.1%) to dissolve. Holding out hope...
Member
User avatar
Sep 7, 2009
241 posts
34 upvotes
ViperZ wrote: phlegm2, can you describe this new electronic system (AES?) - how much more trouble is it? Thanks.
https://www.riv.ca/ImportantNotices.aspx
I'm not overly familiar with it. The gist (to my knowledge) is that you need a broker with US affiliation in order to process the transaction. That's an awkward way of saying that Canadians are not able to make use of the AES systems themselves. This means an extra $150 charge to get someone to do it on your behalf.

I would appreciate it if others have more detail on this and can respond.

I would anticipate that the $150 ripoff declines as additional people jump in to offer this service.

That said, given the exchange, it isn't worth it currently.
Sr. Member
Dec 9, 2001
975 posts
706 upvotes
Vancouver
So, now that it's practically impossible to get Toyota or Subaru dealers to sell Canadians a new car...
I have some questions about getting a friend or relative in the USA to buy a car for me.

So, in order to avoid getting "double taxed", I'll need them to get the car in a state that charges no sales tax.
From what I read on the internet, the car is then taxed if my friend brings it back and registers it in his home state.
My question is... Do they get taxed at the dealership? Or once they take the car home?

Let's say they go to Portland to buy the car. Will they charge tax because my friend is a resident of California?
Or can he get away with driving the car all the way up to Canada without getting charged taxes?

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