Guide to Buying a Car from the US to Canada

Canada offers a limited means of public transport, so if you are relocating there, you might consider buying a car from the US to Canada. Besides the exchange rates, there are many things to consider before importing a vehicle.
You should first get your finances ready. Research the US financing banks that can help you with the purchase or use of your savings. You should also check if your car is importable to Canada and have all the required documents like the ITN.

Once you confirm that you can ship the car to Canada, the next step is to choose how to transport it. Your choice will depend on your budget and distance. Some people ship the vehicles while others drive.
To make your car purchase in the US to Canada easier, follow this guide.

Reasons People Buy Cars from the US

When you are a Canadian citizen, buying a car in Canada seems easier and cheaper because you won’t worry about the shipping fee. But did you know that many car owners prefer buying from the US? These are the reasons.

1. It is Cheaper

Car prices in the US are slightly lower than those in Canada because the United States does not impose a high national sales tax on their cars. While other countries have a national sales tax of up to 30 percent, the highest percentage the US government charges is 8.5.

The labor costs in US-based car companies are also lower, hence the low prices of cars. Also, there are many car manufacturing companies in the US, making competition less stiff and advertising costs lower.

A new or used car from the US might be cheaper than that in Canada, depending on the currency exchange rates. Car buyers check the fluctuating rates and import cars when the rates decrease.

2. More Car Options

There are more cars in the US than in Canada. Car owners will prefer shopping in the US because they can get the different models manufactured in different years. The cars are also available in various makes, making it easier to buy what you want.

3. If it is an Inheritance

Sometimes importing a car from the US doesn’t mean you bought it. Some people inherit property from their other families abroad or when a family member dies. Others also get the car as a gift, so they have to import it into Canada.

Things to Know About Buying a Car from the US to Canada

You could get a good car dealer to help you buy the vehicle from the US or get a car at a very fair price. But failure to factor in all the Canadian government requirements about importing vehicles could land you into trouble.
Some of the essential things to check out before purchasing the car from the US into Canada are;

1. Checking If the Car Is Importable

Transport Canada and the Registrar of Imported Vehicles have requirements for cars brought into the country from other states. For example, the car buyer should install metric odometers.

The Canadian regulations also require that cars have daytime running lights added before being driven in the country. The car buyer should ensure that the vehicle has everything per the RIV to avoid getting into trouble with the government.

2. Car’s Registration and the Title

According to the Canadian government, a car is not yours until registered under you. The rule also applies to the vehicle you are importing. Therefore, car buyers should first register the vehicle to get a title that proves they are the car’s owner.

When buying your car from the US, you should also check with the US government to know if it has a bad title. Having the wrong car title can make it harder for you to import your vehicle into Canada.

3. Check the 72-Hour Export Rule

Most people don’t know about the 72-hour export rule of the US, and it gives many car buyers a headache. To not fall into this trap, research everything you need to know about exporting the car from the US and importing it into Canada.

According to the US regulations on buying a car from the state, you must first export it from the country before importing it into your state. This rule makes it harder for car buyers to export from the US.

The car buyer should contact the US border crossing they will use to take the car to the other country 72hours before going to the border. Once you contact them, ensure you send a scanned document of the front and back of your car’s Title and an Internal Transit Number.

4. Get the Internal Transit Number

In the past, getting a car from the US was not as complicated as today. There have been many changes when buying a car from Canada to the US, like an Internal Transit Number.

To get an ITN, you must be a professional and licensed importer, and you can also pay an importer to get it for you. It costs about $150, and you can get it from various companies that offer the service.

To get an ITN, ensure the importer has a scanned document of your Title’s front and back. They should also have your full Canadian address and your passport number. The other important documents needed are your phone number and the car’s value.

However, the process is a bit stressful because the border does not give a response on receiving or after declining your paperwork. You can only know if you are eligible to transport your car to Canada once you confirm in person at the border.

5. Finding the Export Office

Once you call 72 hours before the export day and your ITN paperwork is ready, you are close to completing your export process. However, there is another task ahead; finding the export office.

To get an export office easier, you can visit the major crossings because not all US border crossings have an office. Alternatively, you can call the specific crossings to find out if they have an export office.

Once you call the US border, they will direct you to an export office and lead you on how to get there. Finding the offices is not a complicated process, and it is the last part of getting your car out of the US.

6. Paying the Tax and Importing

Driving your car through the US export offices means you have cleared the exportation process and can start the importation. You should drive the vehicle to the Canadian customs gate to pay taxes.

According to the sale contract, the tax you pay for the car depends on the cost of the vehicle. Since the customs hardly believe car buyers, ensure you take evidence of the cost of the vehicle, which could be a bank draft or a printout of the eBay price.

The other expenses include a $100 fee for cars with an air conditioner. Also, if your vehicle is newer than 15 years, there is an extra charge of $200. The car buyer should get a number plate for the new car within 45 days from the day of entry into the country.

Final Words

Although buying a car from the US to Canada seems easy and cheap, the process could be long and complicated. However, researching all the required documents and knowing the exportation and importation process of the different countries helps.