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

Member
User avatar
Sep 7, 2009
241 posts
34 upvotes
dantey wrote: Not sure if you're being sarcastic or not, but I didn't realize RIV was a "business".
That import fee to me is no different than a sales tax.
What would be interesting is if consumer spending drops, would the sales tax increase to compensate for government revenue?

What an amazing time after the financial crisis to purchase anything (home, cars), it was. Post 2020, even a bargain doesn't compare at all with 2010.
I guess the silver lining is that cars aren't 3x the price of 2010.
Yep, was sarcastic, given that demand for import approvals must have fallen off a cliff in the past while. Seems like an odd time to charge more.

A private firm is contracted to administer the program on behalf of Transport Canada.
Newbie
Jul 2, 2019
2 posts
Devious wrote: Does anyone have insight into taxes payable if a vehicle is inherited?
Family member passed and the estate (American) is being split up. The vehicle isn’t being sold to us. Do we pay HST in this case? On what value ?
Vehicle will be taxed by CBSA based on 'fair market value' when you import it to Canada. Bring a printout of the KBB value and they'll use that to determine your value.

Source: I imported my vehicle last year when we moved back to Canada from the US. It was a gift from my folks.
Sr. Member
Nov 9, 2017
757 posts
90 upvotes
Has anyone imported a brand new Tesla Y from US yet?
It seems there is a ~$5-7k difference.

Also, if a Tesla is bought in US (anywhere) is it charged tax right at the dealer at purchase time? (this is cash purchase). I understand some states don't charge tax at all on new cars but this is a different situation as car will be imported to Canada so US side shouldn't charge at all as it doesn't get registered there.

Thanks,
Deal Fanatic
Jul 4, 2004
6120 posts
2193 upvotes
Ottawa
snowhite445 wrote: Has anyone imported a brand new Tesla Y from US yet?
It seems there is a ~$5-7k difference.

Also, if a Tesla is bought in US (anywhere) is it charged tax right at the dealer at purchase time? (this is cash purchase). I understand some states don't charge tax at all on new cars but this is a different situation as car will be imported to Canada so US side shouldn't charge at all as it doesn't get registered there.

Thanks,
For the tax, it would depend on the State and you'd have to check with Tesla. With regular dealerships (or private sales) you don't have to pay tax in most states if it's being exported but I'm not sure how that would work with Tesla.
Sr. Member
Nov 9, 2017
757 posts
90 upvotes
michelb wrote: For the tax, it would depend on the State and you'd have to check with Tesla. With regular dealerships (or private sales) you don't have to pay tax in most states if it's being exported but I'm not sure how that would work with Tesla.
Thanks. Some states don't have a tax at all for new cars. I guess I have to call the rest.

Does anyone know if a used or new car has the same process for importing into Canada?
Also, does MTO go from a black book to tax or needs sales receipt from Tesla? Can someone post their sales receipt please? (black out personal info).

Thanks,
Deal Fanatic
Jul 4, 2004
7504 posts
754 upvotes
Toronto
snowhite445 wrote: Thanks. Some states don't have a tax at all for new cars. I guess I have to call the rest.

Does anyone know if a used or new car has the same process for importing into Canada?
Also, does MTO go from a black book to tax or needs sales receipt from Tesla? Can someone post their sales receipt please? (black out personal info).

Thanks,
New or used same process. It got a bit more complicated a while ago where you have to use a broker now or submit your documentation to US Customs export electronically. Regardless, it is a hugely technical process. It will require you to DO RESEARCH.

Many states charge sales tax for out of state purchasers. Some allow you to take delivery in the state and avoid tax. Some you cannot take delivery in the state and avoid tax. Do your research.

You should be providing a sales receipt at the border and to MTO. I'm not sure why you want someone to post their receipt - that will provide you with no benefit in this situation.
Sr. Member
Nov 9, 2017
757 posts
90 upvotes
Drew_W wrote: New or used same process. It got a bit more complicated a while ago where you have to use a broker now or submit your documentation to US Customs export electronically. Regardless, it is a hugely technical process. It will require you to DO RESEARCH.

Many states charge sales tax for out of state purchasers. Some allow you to take delivery in the state and avoid tax. Some you cannot take delivery in the state and avoid tax. Do your research.

You should be providing a sales receipt at the border and to MTO. I'm not sure why you want someone to post their receipt - that will provide you with no benefit in this situation.
Thanks.

A- My main issues seems to be getting a Plate and Insurance to drive it from US to Canada if I am doing it myself. I am not sure how to go about that. Can I get temporary plate and insurance? Because if I want to drive it from US to Canada I am pretty sure I will be ticketed without plates. I have my ICE car plates and insurance. Can I put these onto the new Car and drive it from US to Canada border? Would Canadian border not like it? or US customs?
B- If I get someone in US to buy it in their name and then sell it to me would that be fine? It might make it a bit easier for me in terms of timing. I am thinking they buy it but don't register it with DMV.
C- Would obtaining a use TIN number make this process easier or cheaper?

Thanks,
Deal Fanatic
Jul 4, 2004
6120 posts
2193 upvotes
Ottawa
snowhite445 wrote: Thanks.

A- My main issues seems to be getting a Plate and Insurance to drive it from US to Canada if I am doing it myself. I am not sure how to go about that. Can I get temporary plate and insurance? Because if I want to drive it from US to Canada I am pretty sure I will be ticketed without plates. I have my ICE car plates and insurance. Can I put these onto the new Car and drive it from US to Canada border? Would Canadian border not like it? or US customs?
B- If I get someone in US to buy it in their name and then sell it to me would that be fine? It might make it a bit easier for me in terms of timing. I am thinking they buy it but don't register it with DMV.

Thanks,
For the plates and insurance, it will likely depend on your province and your insurance company. In Ontario, my insurance company, Cooperators, has no issues insuring a US bought vehicle but they only do it for a certain amount of it (might be 30 or 60 days). As far as the plates, OPP recently told me that you are allowed to use plates from your old vehicle on a new vehicle for the purpose of transportation (i.e. if you buy a car somewhere else, you can use the plates to get it home. You cannot use the old plates for "daily driving"). But I would confirm both. (I was surprised the OPP said that but it worked for me because it saved me the time, hassle and cost of trying to get a trip permit (not all States issue trip permits to non-US citizens (e.g. AK), some States charge on the purchase price if you get a trip permit (e.g. CA and FL among others I believe))

Most states charge tax so anyone that buys it would have to pay for the tax and then sell it to you and you'd have to pay taxes again so it would not be a good strategy unless you know someone in one of the few states that don't charge any tax on vehicles. If it's a new purchase, they could be charged tax even if they don't register and I suspect in many states they can't not register it (e.g. in Ontario, you cannot re-assign an ownership that has been transferred to you. You need to register it in your name (and pay taxes) before you can sell it to someone else).
Sr. Member
Nov 9, 2017
757 posts
90 upvotes
michelb wrote: For the plates and insurance, it will likely depend on your province and your insurance company. In Ontario, my insurance company, Cooperators, has no issues insuring a US bought vehicle but they only do it for a certain amount of it (might be 30 or 60 days). As far as the plates, OPP recently told me that you are allowed to use plates from your old vehicle on a new vehicle for the purpose of transportation (i.e. if you buy a car somewhere else, you can use the plates to get it home. You cannot use the old plates for "daily driving"). But I would confirm both. (I was surprised the OPP said that but it worked for me because it saved me the time, hassle and cost of trying to get a trip permit (not all States issue trip permits to non-US citizens (e.g. AK), some States charge on the purchase price if you get a trip permit (e.g. CA and FL among others I believe))

Most states charge tax so anyone that buys it would have to pay for the tax and then sell it to you and you'd have to pay taxes again so it would not be a good strategy unless you know someone in one of the few states that don't charge any tax on vehicles. If it's a new purchase, they could be charged tax even if they don't register and I suspect in many states they can't not register it (e.g. in Ontario, you cannot re-assign an ownership that has been transferred to you. You need to register it in your name (and pay taxes) before you can sell it to someone else).
That is good news from OPP. If I use my ICE car Ontario plates on a Tesla in US won't US troopers be able to see that plate is registered to an ICE car in Canada and not a Tesla which is not even registered to DMV in US? I have seen people who buy and sell used cars for export reasons in Ontario use plates between different cars but I thought they do it illegally. I guess this is allowed. I will call OPP to confirm.

When you say your insurance company had no issue insuring was it a temporary insurance? or was it a full year insurance? if temp insurance how much did it cost if anything at all?

If a car is not registered to DMV as new or as used I don't think tax is paid. If it's exported and one doesn't go to DMV at all how would they collect tax?
Also, if someone from US buys an out of state car I think they can avoid tax but if they buy in state they might be taxes at dealer you are correct there I think.

I would also like to complicate this further and buy with Bitcoin. Wonder if Tesla would not tax with that.

I am looking for those who can transport the car as well. Are towing companies etc my only choice or are there any professional drivers that do this as a job?

Thanks,
Deal Fanatic
Jul 4, 2004
6120 posts
2193 upvotes
Ottawa
snowhite445 wrote: That is good news from OPP. If I use my ICE car Ontario plates on a Tesla in US won't US troopers be able to see that plate is registered to an ICE car in Canada and not a Tesla which is not even registered to DMV in US? I have seen people who buy and sell used cars for export reasons in Ontario use plates between different cars but I thought they do it illegally. I guess this is allowed. I will call OPP to confirm.

When you say your insurance company had no issue insuring was it a temporary insurance? or was it a full year insurance? if temp insurance how much did it cost if anything at all?

If a car is not registered to DMV as new or as used I don't think tax is paid. If it's exported and one doesn't go to DMV at all how would they collect tax?
Also, if someone from US buys an out of state car I think they can avoid tax but if they buy in state they might be taxes at dealer you are correct there I think.

I would also like to complicate this further and buy with Bitcoin. Wonder if Tesla would not tax with that.

I am looking for those who can transport the car as well. Are towing companies etc my only choice or are there any professional drivers that do this as a job?

Thanks,
For insurance, they simply added the new car to my annual policy and said I had to send them the copy of the registration when it's in Canada, imported and registered.

For the purchase, any business (including Tesla and new and used car dealerships) has to charge taxes on every transaction unless you are exempt (Private sales would not be taxed if you aren't registering it). Most (but not all) States have tax reciprocity agreements with other States meaning that if you are from NY but buy a car in FL, the FL dealership will collect whichever tax is lower and then you'll get credited for that when you register it in NY (if NY tax is higher than FL, you'll pay the balance). I don't believe there are any States that have a reciprocity agreement with Ontario (i.e. if I buy a car in Florida and pay taxes, when I import it in Ontario, I have to pay full taxes again and I do not believe Florida refunds taxes paid (other states might though)).

As far as buying with BitCoin, apparently Tesla US does allow this (or is going to allow this but it's possible you can't do it yet) but I believe there are some weird conditions. You'll have to contact them.

For transport, there are thousands of companies that do this and the price varies a lot depending on what you are doing but in general it's not particularly cheap. Technically, it's possible to have it transported from the US to Canada but it's very expensive (I was quote $1600 or $1800 to transport about 5 km from Ogdensburg, NY across the bridge to Canada and this DID NOT include customs processing). Towing companies are priced for short distances so depending on the distance, probably not the option you want. You can get "drive-away" services but that only works for vehicles that are registered so probably not an option (also I suspect most people don't want to have a stranger do drive-away on their brand-new car).
Sr. Member
Nov 9, 2017
757 posts
90 upvotes
michelb wrote: For insurance, they simply added the new car to my annual policy and said I had to send them the copy of the registration when it's in Canada, imported and registered.

For the purchase, any business (including Tesla and new and used car dealerships) has to charge taxes on every transaction unless you are exempt (Private sales would not be taxed if you aren't registering it). Most (but not all) States have tax reciprocity agreements with other States meaning that if you are from NY but buy a car in FL, the FL dealership will collect whichever tax is lower and then you'll get credited for that when you register it in NY (if NY tax is higher than FL, you'll pay the balance). I don't believe there are any States that have a reciprocity agreement with Ontario (i.e. if I buy a car in Florida and pay taxes, when I import it in Ontario, I have to pay full taxes again and I do not believe Florida refunds taxes paid (other states might though)).

As far as buying with BitCoin, apparently Tesla US does allow this (or is going to allow this but it's possible you can't do it yet) but I believe there are some weird conditions. You'll have to contact them.

For transport, there are thousands of companies that do this and the price varies a lot depending on what you are doing but in general it's not particularly cheap. Technically, it's possible to have it transported from the US to Canada but it's very expensive (I was quote $1600 or $1800 to transport about 5 km from Ogdensburg, NY across the bridge to Canada and this DID NOT include customs processing). Towing companies are priced for short distances so depending on the distance, probably not the option you want. You can get "drive-away" services but that only works for vehicles that are registered so probably not an option (also I suspect most people don't want to have a stranger do drive-away on their brand-new car).
I think there must be a way to get back the tax or not pay the tax if a car is exported. This is like any other good that gets exported. Maybe if it's bought for a business?!
Sr. Member
Nov 9, 2017
757 posts
90 upvotes
If I am buying car from a real person in US (private sale) do I have to pay US taxes and then Canada taxes too? or can I avoid US taxes by simply not registering it to DMV?

I have called few locations of Tesla and they tell me they have four milestones before they give me delivery of car and last of which is I have upload my US driver's license which I don't have. And they want to give me a temp plate after I register the car with DMV I guess. I don't want their temp plate I said and then they all just shut down on the phone and told me to call my local Tesla in Canada. Then I said ok I will take your temp registration but they were already distracted that I am from Canada and convinced and said they are NOT ALLOWED to tell me anything. Did they think I offered to buy Spaceship from Elon and not Tesla car?
Deal Fanatic
Jul 4, 2004
6120 posts
2193 upvotes
Ottawa
snowhite445 wrote: If I am buying car from a real person in US (private sale) do I have to pay US taxes and then Canada taxes too? or can I avoid US taxes by simply not registering it to DMV?

I have called few locations of Tesla and they tell me they have four milestones before they give me delivery of car and last of which is I have upload my US driver's license which I don't have. And they want to give me a temp plate after I register the car with DMV I guess. I don't want their temp plate I said and then they all just shut down on the phone and told me to call my local Tesla in Canada. Then I said ok I will take your temp registration but they were already distracted that I am from Canada and convinced and said they are NOT ALLOWED to tell me anything. Did they think I offered to buy Spaceship from Elon and not Tesla car?
For a private sale, you don't have to register it with the DMV so you don't have to pay taxes.

It's pretty common that US dealers refuse to sell new to Canadians so I'm not surprised if Tesla didn't do it either.
Sr. Member
Nov 9, 2017
757 posts
90 upvotes
michelb wrote: For a private sale, you don't have to register it with the DMV so you don't have to pay taxes.

It's pretty common that US dealers refuse to sell new to Canadians so I'm not surprised if Tesla didn't do it either.
If private sale then car can be imported to Canada without paying US taxes as well? i.e. in the driving to Canada no registration needed? or in other parts of the process?

Why not? What's the big deal specially if it is paid cash? It can't be just the sells tactics.

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