Ongoing Deal Discussion

[Always] 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 Addict
Jul 17, 2003
1266 posts
150 upvotes
Toronto
mack wrote:ok wait...so i would still have to pay 14% tax on my car that i imported?

so a car made in the NAFTA would be price + 14% tax + all fees?

and a car made in japan or some place elsewhere would be price + 6.125% duty + 14% tax + all fees?

that wouldnt be a hot deal anymore.

CAD cost for civic: total $27,251.70 MRSP - can probably get it for 26000ish after dealings
US cost for same civic: $19,010 USD = ~$21,601.11 CAD x 1.14 = 24625

so savings will be approx 2,000?

all that trouble for 2,000?....i think i'll just get it here.

correct me if i'm wrong.

Target Price in USD (check www.edmunds.com and put in the car you want)
multiply by 1.1 USD to CAD conversion rate
= Price in Canadian dollars

The taxes and fees you pay is:
6.1% nafta for cars built outside north america
6% gst
8% pst for ontario
$100 air conditioning tax
$209 riv package fee



However, from earlier on this thread, Honda and Acura won't honour their warranties if you import it from the states....so it might not be worth it to buy a Honda/Acura.
Warranties for the following dealers are valid in canada though: Toyota/Lexus, Nissan/Infiniti, BMW, Mercedes, Ford.
I'm not sure about the other dealers.

Also, for compact cars like the civic, the price differnece isn't as big so it might not be worth it...

hope that helps
Sr. Member
Jul 23, 2003
829 posts
4 upvotes
Lindsay
Watch the exchange folks! last message quoted about $1.10 but its more like 1.15 right now! makes a big difference on a large purchase.
[OP]
Deal Addict
User avatar
Feb 28, 2006
1347 posts
162 upvotes
Toronto, Ontario
Hey aZnRYcEbOi, unless you live in Alberta, you will pay PST when you register your new car in Ontario. I have confirmed that with the Ontario Ministry of Transportation.

If you know how to get around paying PST, the savings would be incredible!

The RIV rep. tells me you will pay GST AFTER the 6.1% duty is applied.

If someone can confirm that, that's even more savings!

If I bought a Honda and could save $5000+, I would have no problem going back to Buffalo for warranty work. I think everyone would agree with that unless the US no longer treated the car as American (since it was registered in Canada).

You raised some very interesting points...
[OP]
Deal Addict
User avatar
Feb 28, 2006
1347 posts
162 upvotes
Toronto, Ontario
From what I understand, if Transport Canada forces a recall, any dealer will cover the repair.

If the manufacturer recalls a car, I believe it's treated as a warranty repair and you could run into trouble.
Sr. Member
User avatar
Apr 2, 2004
724 posts
143 upvotes
How often is recall for cars? I've bought 5 cars new directly from the dealer for the past 10 years...and I have never had anyone of them recalled...unless they did something while I bring it back for service without telling me...I only go back to the dealer for services...and the 5 cars I had are toyota, nissan, acura, mazda & bmw.
Newbie
Jan 6, 2006
77 posts
Monsieurmaggot wrote: The RIV rep. tells me you will pay GST AFTER the 6.1% duty is applied.
We had to pay the 6% GST on top of the 6.1% duty 2 weeks ago. A tax on a tax is always annoying.

So for a $20,000 car, we would pay 6.1% duty, bringing the price up to $21,220.

Then we pay GST on $21,220, bringing the price up to $22493.20

No PST in Alberta!

Make sure you know exactly how much you should be paying before you get to the border. The woman we dealt with at the border was mistakingly charging us the duty twice, and it took some discussion and a calculator to convince her she was doing it wrong (the 6.1% was added automatically, then she added another 6.1% manually, and then the 6% GST!)

We're still waiting for RIV to send us the inspection paperwork (7 business days and counting...)
Newbie
Jan 6, 2006
77 posts
mack wrote:ok wait...so i would still have to pay 14% tax on my car that i imported?

so a car made in the NAFTA would be price + 14% tax + all fees?

and a car made in japan or some place elsewhere would be price + 6.125% duty + 14% tax + all fees?
Don't forget that the Canadian dealer will charge you somewhere between $1000 and $1500 for "freight and PDI", but the US dealer usually charges closer to $200-$300 for the same thing.

You can't really compare MSRPs, though - you need to get quotes from a Canadian dealer (for the full price, including all of the extra fees), then get quotes from the US dealer, account for the current exchange rate, and then figure out if it is worth the trouble.

We saved over $5000 even after you factor in a hotel for the night, gas there and back, a falling Canadian dollar at the time, different financing rates, inspections, duties, and taxes.
Deal Addict
User avatar
Aug 16, 2005
1021 posts
78 upvotes
eltonkk wrote:How often is recall for cars? I've bought 5 cars new directly from the dealer for the past 10 years...and I have never had anyone of them recalled...unless they did something while I bring it back for service without telling me...I only go back to the dealer for services...and the 5 cars I had are toyota, nissan, acura, mazda & bmw.
dealers do not usually call you for the recall parts unless it doesn't work. i have a letter from VW about a recall hazard light since it's not safe without it. they have a long list of other parts that are on the list.
Deal Addict
Jul 17, 2003
1266 posts
150 upvotes
Toronto
Monsieurmaggot wrote:Hey aZnRYcEbOi, unless you live in Alberta, you will pay PST when you register your new car in Ontario. I have confirmed that with the Ontario Ministry of Transportation.

If you know how to get around paying PST, the savings would be incredible!

The RIV rep. tells me you will pay GST AFTER the 6.1% duty is applied.

If someone can confirm that, that's even more savings!

If I bought a Honda and could save $5000+, I would have no problem going back to Buffalo for warranty work. I think everyone would agree with that unless the US no longer treated the car as American (since it was registered in Canada).

You raised some very interesting points...
sorry, my mistake.
you're correct, Ontario vehicles will require PST also...
Sr. Member
Oct 4, 2005
712 posts
I tried searching for information concerning the possibility of getting a lease on a US car, but was not able to find anyhing useful. Can anyone confirm whether a lease is possible?

Also, this car is mainly for company use, so I was wondering if anyone knew of any problems concerning tax purposes.
Deal Addict
Jul 4, 2004
4892 posts
985 upvotes
Ottawa
markjia wrote:I tried searching for information concerning the possibility of getting a lease on a US car, but was not able to find anyhing useful. Can anyone confirm whether a lease is possible?

Also, this car is mainly for company use, so I was wondering if anyone knew of any problems concerning tax purposes.
I suspect that it may be quite difficult to lease a car in the US and import it into Canada. At a minimum you will need a letter from the manufacturer (or whoever you are leasing it from) authorizing you to export it (from US Border and Customs website:

Where title evidences third-party ownership/claims. If the used, self-propelled vehicle is leased or a recorded lien exists in the U.S., in addition to complying with paragraph (b)(1)(i) of this section, the provisional owner must provide to Customs a separate writing from the third-party-in interest which expressly provides that the subject vehicle may be exported. This writing must be on the third-party's letterhead paper and contain a complete description of the vehicle including the Vehicle Identification Number (VIN), the name of the owner or lienholder of the leased vehicle, and the telephone numbers at which that owner or lienholder may be contacted and must bear an original signature of the third-party and state the date it was signed.

).

Also when your lease is up, unless you plan on buying out the vehicle, you will need to export it back out of the Canada and re-import it into the US.

I suspect that the money you can save on a cross-border lease will probably be wiped-out easily by the cost and hassle. I also suspect that you will have a hard time finding a leasing company that will agree to lease it to you if you intend on exporting it (actually I suspect that you'll have a fairly hard time finding a company that will lease to you if you aren't living in the US and have a social insurance number, etc).

Good luck and please correct me if I'm wrong.
Newbie
Aug 6, 2005
48 posts
Does anybody know of any dealer (toyota/honda) in US who would be ready to sell/lease a car to a canadian with no credit history in US but has maintained a good history in canada? Usually if somebody is paying cash in full, it won't matter but if it has to be financed or leased which dealer would do that?
[OP]
Deal Addict
User avatar
Feb 28, 2006
1347 posts
162 upvotes
Toronto, Ontario
stevethank, you will have a heck of a time getting a US lease or financing.

As michelb pointed out, leasing a car for temporary export might not make any financial sense.

From everyone I spoke to, it appears a "outright US purchase" is the way to go. You get a Canadian loan.

Since you're seen as a cash buyer in the US, you actually can leverage a better deal or accesories.
Sr. Member
Nov 15, 2004
944 posts
2 upvotes
Toronto
Monsieurmaggot wrote:stevethank, you will have a heck of a time getting a US lease or financing.

As michelb pointed out, leasing a car for temporary export might not make any financial sense.

From everyone I spoke to, it appears a "outright US purchase" is the way to go. You get a Canadian loan.

Since you're seen as a cash buyer in the US, you actually can leverage a better deal or accesories.
I agree with MonsieurMaggot.
Americans seem to place more emphasis on credit history than Canadians. I couldn't rent an apt nor getting a cellphone contract without a credit history in the US. I was asked to prepay everything (yes my rent as well). Thus, I HIGHLY doubt u'll be able to get any type of lease or finance.

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