Canadians buying American cars.

Yosemite Dan · 11-23-04, 07:33

With the CDN dollar nearing .85 U.S. and climbing. I thinking since some cars in American dollars are proportionately lower than the CDN price what taxes would I be paying if I bought in the U.S.

For example I live in toronto and the price of a 350Z is about 46K (for base model) plus 15% tax which would bring it up to about 53K CDN. If I go to Buffalo the base model on a 350Z in the U.S. is about 28K before tax, less options than the CDN base but that's not a concern. 27K U.S. even with state tax on top will still be much less than 40K CDN.

If I bought in the U.S. what duties would I pay on it and do I pay GST on it or what. Anybody done this and could you give me specifics on what I'd be on the hook for. Sounds like I would have to be really dinged on some tax for it to be a bad deal. I'm thinking I'd save 10K CDN at the very least.

NTTG · 11-23-04, 08:15

GST and provincial sales tax still apply as both are a consumer base taxes aimed at "consumption" in Canada (obvious assumption being you are bringing it back to Canada). Could ask about any duties from my colleagues (see if any one can call in a favor to find out for sure) but no guarantee I can come up with an answer as we typically deal only in taxes.

NTTG · 11-23-04, 08:17

By the way, the GST and provincial sales tax will be based on the fair market value equivalent in Cdn $$.

Yosemite Dan · 11-23-04, 09:01

Why would PST apply. I've bought detailing products from B.C. where I didn't pay PST only the GST so wouldn't that apply to buying from New York State.

I'm trying to do the math based on your info. Assuming state tax is 5%(?) Makes the car about 30K U.S.(35KCDN) So GST and PST of CDN market value of 46K would be about 7K.

That gives me 42K CND based on both GST and PST. About 38KCDN without PST. I can't imagine duties being more than a couple of grand. So i'm thinking worst case scenario of it costing 45K. I'd still save about 8-10K. Keep climbing Loonie. Thanx for the reply.

JustinTRW · 11-24-04, 12:34

Sometimes pricing points differ in various markets in order to be more competitive and are not always just translated into the destination currency at time of vehicle launch. I know this was the case when buying my last car, where it was significantly cheaper to buy from Canada, but legislation stood in the way of making that happen.

You might want to investigate such governmental policy and whether or not it exists. I suspect there is something in place that would stop you, or at least make it difficult, otherwise more people would be doing it.

Though if you find a way, please let us know. My family in Canada would probably benefit from this info.

IanO · 11-24-04, 03:35

You aren't the first one to think of this

The reason it isn't done is for several reasons. There are actually fairly significant duties payable on a new or fairly new car... I believe the car has to be 10 years or older before it starts to look feasible.

Transport Canada restricts certain cars from being imported. I think now this might just be the 10 year thing from above but they also have requirements on changing the vehicle to Canadian standards... many models have very slight differences but these changes can add up.

Finally, depending on how the company is structured with respect to US and Canadian divisions you warranty is most likely void. This is a decent chunk of the price of the car that you are throwing away.

Most of these same rules apply going in the opposite direction as in the 90s we were buying cars for much cheaper than those south of the border. There was no flood of them buying cars from Canada. The exception would be the reserves that straddle the border... they have the luxury of buying the car in whatever country they choose I think.

kgb · 11-24-04, 05:16

Just remember that MPH are the standards here and the KPH are a little smaller on the gauge cluster.

ShineShop · 11-29-04, 05:37

One point not being considered here is the issue of warranty. As most Canadians involved with the auto industry know, hundreds of thousands of new vehicles destined for the Canadian auto market were purchased in Canada and immediately shipped back to the USA for a profit. These vehicles are clearly marked "not for export" and are intended for the Canadian market but when the dollar was very low could be purchased and resold for a profit to our American neighbours. The Big 3 attempted to combat this practice by effectively voiding the factory warranty on vehicles imported to the US that were intended for foreign markets. I also believe you will be subject to duty and import tariffs upon importing the car. Duty is typically 4% - not sure about the tariffs. You are better off grabbing the 350 here off the used market. I just passed up on a 2003 350z roadster (silver with orange leather interior) for $43000.00. It was fully loaded with 6000 kms and in perfect condition. Unfortunately the deal came along at the wrong time so I had to pass it up.

NYV6Coupe · 11-29-04, 06:51

I couple years ago I wanted to buy an Accord EX V6 Coupe and I found more cars in Ontario (Golden Horseshoe) than in the New York / Pennsylvania / Ohio area.

I inquired about the speedo conversion & I was told that I'd need to go through an importer so the vehicle's emissions equipment was compliant with US standards, US safety equipment had to be on the car & working, etc ........

Obviously, just a little bit more going on here than a quick slam-dunk so I feel safe to say similar precautions/procedures would have to be followed for US cars being purchased by Canadians.

There's a speedo shop in Buffalo that does this type of importing regularily but I wasn't interested in pursueing the purchase so we never got around to discussing price.

grimmster · 11-30-04, 06:35

You can't forget about the modifications that would probably have to be done for a canadian car. The US spec does not require DRL, but I think Canada does? Also signaling side marker lights would have to be added, any emissions testing done in Canada? that might have to be changed......

ShineShop · 11-30-04, 07:15

I forgot to add that the crash test standards here in Canada are slightly higher in Canada than in the US. That's why we got screwed and can't buy the new GTO from a Canadian dealer because it doesn't meet our bumper regulations or some nonsense.