Buying + Selling
A Guide To Buying A Car In The U.S.
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The Canadian dollar continues to rise and many consumers are heading to the United States to take advantage of the deals. However, an equal number of people are weary of buying across the border. The concept isn’t as difficult as it sounds. Do a bit of research and follow the necessary steps to purchasing a foreign car and you could find yourself getting quite the deal.
Do Your Research
It may seem like a good idea to buy a used car in the States because of the lower prices. However, there are steps you need to take to make sure the car is in buyable condition. Have the car inspected by a third party, like an independent garage, before going ahead with the purchase. It is important to get a CARFAX report on the car. The report will give you the car’s history as far as insurance claims, lean holders and anything else you may need to know.
If you’re after a new car, you’ll be taking a different set of steps. Contact the Registrar of Imported Vehicles (RIV) once you know which car you want to purchase. You’ll be able to find a list of admissible and inadmissible autos for import into Canada. Obviously, the vehicle you want must be on the list of admissible for import.
Also, find out what your car will need to comply with Canadian standards. Make sure there aren’t any warranty implications for a car that is brought across the border. If there are, try to work things out before you have the car imported. Some auto companies require the car to be in the country for a few months before anything can be done to fix warranty issues.
Find out what the case will be for your car. Talk to dealers and find out exact prices so you can be sure you’ll actually be saving money. Be certain the dealer will actually sell to a Canadian citizen, as not all dealers are willing to do so.
Purchase The Vehicle
The RIV will request a Recall Clearance letter, which can be from either the manufacturer of the car or the dealership you are buying it from. The letter states whether or not there are any outstanding recalls on your model. If any issues are found, they must be corrected before you import the vehicle. Once you purchase your car, you must send either a copy of the Vehicle Title Document or a Statement of Origin to the U.S. Border Services port you will be bringing the vehicle through. Get a copy of the Fax Transmission Receipt, which will show the date and time you or your dealer sent the vehicle across the border. Make sure to send the Vehicle Title Document or Statement of Origin 72 hours before you plan on bringing the car across the border. You should also get a tax exemption on the car since you are not a resident of the state where it was purchased.
Get Across The Border
Before you can import your car, you have to have it exported from America. You need the title document that was faxed across, your ID, the fax transmission receipt for reference and the purchase invoice. U.S. Border Services will crosscheck this information with the information you faxed to them earlier. The USBS will then stamp all your documents for export and you will be ready to import the car.
When you take your new vehicle across the border, go to the Canadian Border Services offices (the same office you would go to pay duties on goods brought in from the U.S.). You will be asked for all of the documents listed above as well as your passport.
You will have to pay GST and possibly duty fees on the car. The tax will be the Canadian equivalent to what was paid in America. There will be a duty fee to pay if your car was not manufactured in North America.
Customs will ask you to fill out a form called Form 1 to begin the importing process. When you get home, you must send $206 to the RIV with the reference number on Form 1. The RIV will send you Form 2 and you will be ready for a compliancy inspection and a safety inspection. The inspectors will then stamp Form 1 to signal the end of the inspection. Take all your documentation to the Ministry Of Transportation to receive Canadian Ownership of the car, license plates and anything else your car will need. At this point, you’ll have to pay PST on the car as well.
Follow The Process
Buying a car outside the country can be difficult if you are unsure how to do it. Avoid the difficulty by making sure you follow the process step-by-step. You can save thousands of dollars by purchasing in the U.S. and you may even find a model unavailable at Canadian dealerships. Move past your apprehension to take advantage of the benefits of buying in the States.
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