Buying a car from the States - Calgarypuck Forums - The Unofficial Calgary Flames Fan Community

red sky · 01-26-2011, 02:54 PM

So the wife and I are looking into getting a compact SUV and discovered that there are significant price discrepancies between Canada and the US. I have done a bit of research and it seems like the process really isn't that difficult if you just have everything organize. I found the site, www.riv.ca very helpful but I wanted to get some CPers thoughts and experiences on the process? I have already looked at RFD as they have a helpful, yet extremely lengthy, debate on this very topic.

One example that I found is this Q5 for close to 7 grand less than what we would pay in Canada. And yes, I am aware that there is a 6.1% surcharge for not buying an American made car in the US of A.

Any help, suggestions, etc, is greatly appreciated

burn_this_city · 01-26-2011, 02:55 PM

Be sure they'll honor your warranty in Canada. Quite a few of the manufacturers have tried to stop Canadian consumers by voiding the warranty.

red sky · 01-26-2011, 03:04 PM

Quote:

Originally Posted by burn_this_city

Be sure they'll honor your warranty in Canada. Quite a few of the manufacturers have tried to stop Canadian consumers by voiding the warranty.

Even in some cases if you can save $5,000 is it worth it still though? I found a Honda CRV with navigation and everything for $28K versus around $38K it would cost here. Honda is pretty reliable so it might be worth it to just take the chance, and even in the worst case scenario, if you do have a lemon then couldn't you theoretical drive it back down to the States to have replaced or whatever they might do?

burn_this_city · 01-26-2011, 03:10 PM

Its a gamble for sure. Chances are it would be fine, but if a bunch of electrical or engine repairs are required you could lose the savings quickly. Most people don't have the cash on hand to pay out thousands in repairs. Its a lot easier for people in BC who live near the border to drag it south for repairs. Plus I've heard local dealers (BMW) put the US cars on the backburner for shop time because they want to screw you as much as possible.

chummer · 01-26-2011, 03:14 PM

Quote:

Originally Posted by burn_this_city

Its a gamble for sure. Chances are it would be fine, but if a bunch of electrical or engine repairs are required you could lose the savings quickly. Most people don't have the cash on hand to pay out thousands in repairs. Its a lot easier for people in BC who live near the border to drag it south for repairs. Plus I've heard local dealers (BMW) put the US cars on the backburner for shop time because they want to screw you as much as possible.

Really? Yet they have no problem screwing us by charging thousands more than the U.S. cars.Funny they can never seem to explain why the cars are so much more up here than in the States.My next car I'll be looking south of the border.

red sky · 01-26-2011, 03:15 PM

Thanks. I did find this site, although it is outdated, it obviously seems that it is company specific:

http://www.apa.ca/template.asp?DocID=253

Nevertheless, it seems like Audi's are covered by a North American warrenty but Honda, for example, is not.

burn_this_city · 01-26-2011, 03:16 PM

Quote:

Originally Posted by chummer

Really? Yet they have no problem screwing us by charging thousands more than the U.S. cars.Funny they can never seem to explain why the cars are so much more up here than in the States.My next car I'll be looking south of the border.

Yup, I've heard Calgary BMW will only service one or two US cars a day. They can't justify it, so they take up childish ploys like charging thousands for Canadianizing the car. Or $500 for a print out from their computer that says the car has no outstanding recalls, which is a requirement for RIV.

Handsome B. Wonderful · 01-26-2011, 03:54 PM

Just remember, the big numbers on the speedometer are miles.

Lanny's Stache · 01-26-2011, 04:00 PM

I am considering getting car in the USA this summer. It looks like it may still be possible to buy new, but it would be a huge pain. Dealers are not supposed to sell new cars to Canadians, so you have to do a bunch of work arounds. To me, it does not look worth it. So I am looking at 1-2 year old cars.

In the case of used cars, depending on the model, Canadian prices are not far off (I did say for some). For example, there are a fair number of newer model Nissan Maximas around for similar prices to the US. Same for Volvo S80. But I did notice that used Audis are overpriced in Canada compared to the US. And everything that I have looked at (and from word of mouth) indicates that Audi honours warranties in Canada. Same goes for Toyota/Lexus.

As for dealers in town not playing along, that is fine. It is their business. But I have certainly taken note of this. That is why I will not buy a BMW, Mercedes, or Acura. They are all very poor at dealing with US bought cars. Rather than changing their pricing policies, they are trying to alienate their customers. If their pricing was even close, I wouldn't be looking at all of the extra work.

The funny thing is that most dealers make their money on parts & service. You would think they would want more cars to service. I guess not.

Ace · 01-26-2011, 04:05 PM

In regards to the warranty, you can always buy a 3rd party one. For instance if you're saving $10k and a 3rd party warranty is say $5k (i have no idea how much it would be) you'd still be ahead...

CedarMeter · 01-26-2011, 04:20 PM

I bought my Escalde from a dealer in Scottsdale..Didn't do enough home work and ended up paying 2000.00 for an SUV emmission tax at the border..Still, I saved about 7 grand buying it down there.

HockeyPuck · 01-26-2011, 04:27 PM

I've bought 3 cars State side and I don't plan on buying another Canadian vehicle until there is price parity. I brought up a 2005 Toyota Tacoma from Huntington Beach, a 2007 Audi A4 Cabrio from Portland, and a 2006 Honda Pilot from Utah.

Had to pay 6% duty on the Audi, but the others were NA vehicles. No bad experiences at all. I've found this website to be useful:

http://www.importcartocanada.info/

chummer · 01-26-2011, 05:10 PM

Quote:

Originally Posted by HockeyPuck

I've bought 3 cars State side and I don't plan on buying another Canadian vehicle until there is price parity. I brought up a 2005 Toyota Tacoma from Huntington Beach, a 2007 Audi A4 Cabrio from Portland, and a 2006 Honda Pilot from Utah.

Had to pay 6% duty on the Audi, but the others were NA vehicles. No bad experiences at all. I've found this website to be useful:

http://www.importcartocanada.info/

Good to hear HP.Have you had any problems selling U.S. vehicles in Canada?

Phanuthier · 01-26-2011, 06:09 PM

Ist he 6% tax on new vehicles, or on all vehicles? (i.e. on used vehicles as well?) And if its just on new, is there any fee's waived if the vehicle is owned for 4 months?
I ask, because my parents are interested in purchasing a vehicle and depending on how they want to do it, I could buy it, own it for 4 months, then "sell" it to my parents to drive back to Canada.

lucky1 · 01-26-2011, 06:16 PM

Riv.ca is the website you need....lists all the cars that will be allowed for import, lists the general steps etc.
Importing from the states is definitely worth it if you have the time to do the legwork....its also a nice way to take a little holiday (if you fly down and drive it back)

Clarkey · 01-26-2011, 07:05 PM

Quote:

Originally Posted by HockeyPuck

I've bought 3 cars State side and I don't plan on buying another Canadian vehicle until there is price parity. I brought up a 2005 Toyota Tacoma from Huntington Beach, a 2007 Audi A4 Cabrio from Portland, and a 2006 Honda Pilot from Utah.

Had to pay 6% duty on the Audi, but the others were NA vehicles. No bad experiences at all. I've found this website to be useful:

http://www.importcartocanada.info/

I don't need to buy a vehicle right now but I'm curious what the cost comparison was, do you care to share?

DownhillGoat · 01-26-2011, 08:07 PM

Quote:

Originally Posted by Phanuthier

Ist he 6% tax on new vehicles, or on all vehicles? (i.e. on used vehicles as well?)

The 6.1% is duty, not tax per se. It's on all vehicles not covered under NAFTA, new or used. If you buy a north american made vehichle (keep in mind some imports are still made in NA factories) you don't pay the 6.1%.

I purchased one of my vehicles in the US, not sure I'd do it again. The selection was much better, and I found what I wanted (couldn't find the options I wanted in Canada), but I don't think I saved that much after all was said and done.

Keep in mind, if you want to trade it or sell it down the road you'll get railed because it's a US vehicle. I was offered about 5k less than Canadian vehicles on a trade by more than one dealership.

Sliver · 01-26-2011, 08:20 PM

Quote:

Originally Posted by burn_this_city

Its a gamble for sure. Chances are it would be fine, but if a bunch of electrical or engine repairs are required you could lose the savings quickly. Most people don't have the cash on hand to pay out thousands in repairs. Its a lot easier for people in BC who live near the border to drag it south for repairs. Plus I've heard local dealers (BMW) put the US cars on the backburner for shop time because they want to screw you as much as possible.

It's not a gamble at all. If you have the cash/ability to get a bank loan you'd be nuts not to buy in the States. The border is 5 hours away...IF something catastrophic happens and IF your warranty won't be honoured, just throw the vehicle on a flatbed in the morning and you'll be having lunch in Great Falls waiting for your car to be repaired.

Here's what I saved when I did this in 2007...anybody who says it's a bad idea or not worth it either hasn't done it or didn't take the 20 minutes to research how to do it.

HockeyPuck · 01-26-2011, 08:31 PM

Quote:

Originally Posted by chummer

Good to hear HP.Have you had any problems selling U.S. vehicles in Canada?

Had no problems selling the Tacoma back in 2007. Truck was 2 years old and only had 6000 miles by the time I drove it back from CA. I saved about $7k on purchase and I made $5k when I sold it.

Audi was another story. I bought the car right before the recession hit. I bought the vehicle for about $36k. I think I saved about $10k when compared to Canadian prices. However I had the hardest time selling it because no one wanted a luxury convertible - especially one where they couldn't make monthly payments. I took a loss on that one.

My Honda I have no intentions selling soon because it is such a great vehicle. My wife loves it. We'll have that one for a while.

HockeyPuck · 01-26-2011, 08:39 PM

Quote:

Originally Posted by kunkstyle

The 6.1% is duty, not tax per se. It's on all vehicles not covered under NAFTA, new or used. If you buy a north american made vehichle (keep in mind some imports are still made in NA factories) you don't pay the 6.1%.

I purchased one of my vehicles in the US, not sure I'd do it again. The selection was much better, and I found what I wanted (couldn't find the options I wanted in Canada), but I don't think I saved that much after all was said and done.

Keep in mind, if you want to trade it or sell it down the road you'll get railed because it's a US vehicle. I was offered about 5k less than Canadian vehicles on a trade by more than one dealership.

This is correct in regards to the 6% duty. However, you also have to pay 5% GST at the border.

If you plan on driving your vehicle back, expect to spend at least 72 hours in the US. You have to send your paperwork to the bordercrossing you are crossing at 72 hours in advance.

Also, make sure you get the title for the vehicle. Not a copy, but the original. Sometimes seller will offer you a copy of the title if they are still making monthly payments on the vehicle and the bank has the original. Not good enough. If you don't get the original title, you'll be leaving your vehicle at the border and calling your friends or family to come pick you up at the border.