Dollar's up: Should I go to the US to buy a car?

[killer_carlson]

I'm quite keen to get a new ride for myself. I've been waiting for the prices to fall significantly on GM or Chrysler and nothing yet, however the dollar is up again.

What is the deal with buying cars in the US? I know if it is built in NA, there is no duty, but has anyone on here run into problems with inspections, or dealerships for repairs or whatnot?

I had a buddy wanting to buy a Volkswagon and was told flat out by a dealership in Edmonton that if he bought a model from the US, that they would not perform any repairs on it until every Canadian model that was in the shop had been repaired.

[Displaced Flames fan]

No sales tax in Montana.

[TurnedTheCorner]

Warranty issues come up as you mentioned, I've also heard registration can be a hassle. How does duty taxes come into it? Seems like it's not worth the hassle unless the dollar is at par again, and gets there rapidly like last time before prices adjust.

[Kybosh]

I have a somewhat related question. If GM goes bankrupt, what kind of sales or discounts will there be with their remaining stock? Also, why haven't there been any deals yet? A new silverado or sierra would look pretty great in front of my house.

[Aeneas]

Originally Posted by killer_carlson

I'm quite keen to get a new ride for myself. I've been waiting for the prices to fall significantly on GM or Chrysler and nothing yet, however the dollar is up again.

What is the deal with buying cars in the US? I know if it is built in NA, there is no duty, but has anyone on here run into problems with inspections, or dealerships for repairs or whatnot?

I had a buddy wanting to buy a Volkswagon and was told flat out by a dealership in Edmonton that if he bought a model from the US, that they would not perform any repairs on it until every Canadian model that was in the shop had been repaired.

Seems like a pretty odd business model.
I understand they want you to buy the car from them, but what they said would turn me off being a customer of any kind, repairs or sales.

[soulchoice]

Absolutely buy from the US if you can do it. It is a very simple and easy process. Cars in Canada are much higher pricewise. Depending on what you want, you can save. From a used car perspective, cars in Calgary have always been overpriced compared to many other cities in Canada.

I just brought in a 2006 Audi A4 S-Line with all options for thousands less than what it would have cost here. Also am just about to go get a 2005 Corvette for bout 10-15k less than what it would cost here as well. Certain mods may have to be done to conform with RIV canada standards for some cars, but in reality its nothing to worry about.

If you dont mind waiting for a couple weeks to ship and are familiar with the overall importing process, it is very easy. I have brought over 8 cars/suvs in the last 3 years and have saved everytime, with little or no headaches. Registering and inspections are easy and not a hassle at all.

[Winsor_Pilates]

I've never done it, but it seems like a very simple process of it's worth the $$. Just look up the car type you want before hand to see where it's made, and if any sort of modifications will need to be done to conform with Canadian standards (e.g, daytime running lights).

I found most cars didn't need anything done to them, and could be brought over very easily, but all of the cars I was looking at would require duty payment which negated most of the savings for me.

If I was going to buy a really expensive car (over 50K) I would definitely try to get it in the US, as I think you could save a lot going that way.

[soulchoice]

Originally Posted by Winsor_Pilates

I've never done it, but it seems like a very simple process of it's worth the $$. Just look up the car type you want before hand to see where it's made, and if any sort of modifications will need to be done to conform with Canadian standards (e.g, daytime running lights).

I found most cars didn't need anything done to them, and could be brought over very easily, but all of the cars I was looking at would require duty payment which negated most of the savings for me.

If I was going to buy a really expensive car (over 50K) I would definitely try to get it in the US, as I think you could save a lot going that way.

Depending on the car, you can save by spending even 20k. Thousands literally and with less mileage on car(also, no winters on it, like what you would get here).

[Finny61]

I understand that it is much cheaper on the overall car price but you have to arrange your own financing correct? Is line of credit interest rates not much higher then the average dealers financing offers (0% to 3%)?

[DESS]

I did it in 2007. It is an easy process and I saved over $10k including the plane ticket to Washington and gas back to Calgary. Buying new in Canada would be nuts IMO.

[DESS]

Oh and repairs and warranty work through Toyota have been absolutely painless.

[HOOT]

Originally Posted by Aeneas

[/b]
Seems like a pretty odd business model.
I understand they want you to buy the car from them, but what they said would turn me off being a customer of any kind, repairs or sales.

Working closely with many different dealerships I can tell you this happens a lot.

I have never heard them turn away business but they will do a lot more to squeeze in their own customers before someone who bought from another dealership.

[Dion]

Some manufacturers, including Acura, BMW, Chrysler, General Motors, Honda, Lexus, and Toyota, prohibit their U.S. dealers from selling vehicles for export. Such prohibitions, along with generally higher Canadian car prices, have spurred Canadian consumers to file a $2 billion class-action lawsuit and a discrimination complaint against automakers and dealers. While Subaru permits cross-border sales, it's making them less appealing by eliminating incentives to its U.S. dealers for cars sold for export, and Canadians who export U.S. Subarus no longer qualify for rebates or other incentives, says Joe Spitz, Internet sales manager for a Seattle Subaru dealer. As a result, he says, the savings for Canadians buying an Outback 2.5i from his dealership rather than in British Columbia dropped from $12,000 to $7,000. Moreover, we couldn't find a single carmaker willing to finance the purchase or lease of a U.S. vehicle headed north, which means you may not be able to take advantage of some promotions.

The U.S. warranty might be invalid in Canada or, as with Chryslers, invalid on both sides of the border once the car is exported. Even if the U.S. warranty is valid in Canada, some benefits might differ or be unavailable.

http://www.consumerreports.org/cro/c...-the-us-ov.htm

[henriksedin33]

Originally Posted by Displaced Flames fan

No sales tax in Montana.

I'm 90% sure you don't pay state sales tax, no matter where you buy it, since you're not registering the car in that state

[Deegee]

Originally Posted by Finny61

I understand that it is much cheaper on the overall car price but you have to arrange your own financing correct? Is line of credit interest rates not much higher then the average dealers financing offers (0% to 3%)?

0% would be great if it was really 0%, but often times they charge you a silly financing fee for getting 0% which jacks the interest rate up significantly.

[Displaced Flames fan]

Originally Posted by henriksedin33

I'm 90% sure you don't pay state sales tax, no matter where you buy it, since you're not registering the car in that state

You are 99% wrong.

You're thinking of property tax. Sales tax is exactly like your GST. You pay it at the time of purchase.

[browna]

Originally Posted by Displaced Flames fan

You are 99% wrong.

You're thinking of property tax. Sales tax is exactly like your GST. You pay it at the time of purchase.

No, I think with cars in the US, state tax is paid when registered at the DMV, in the state it is registered in.

Only exception for cars being California, if you're from Nevada or Alberta, you have to pay State tax in California at the time of purchase.

[Displaced Flames fan]

Originally Posted by browna

No, I think with cars in the US, state tax is paid when registered at the DMV, in the state it is registered in.

Only exception for cars being California, if you're from Nevada or Alberta, you have to pay State tax in California at the time of purchase.

Again, that is property tax!

Sales tax is paid at the time of purchase. I've done this multiple times folks!

[browna]

Originally Posted by Displaced Flames fan

Again, that is property tax!

Sales tax is paid at the time of purchase. I've done this multiple times folks!

Well, not sure if we're arguing over semantics or not, but having gone through this procedure last year, all but confirmed that sales tax is not charged by dealers if you prove you're an out of state buyer, in most states. My experience is with Nevada, Washington, Utah and Oregon.

For example:
http://www.carburner.com/index.php?title=Washington

[Displaced Flames fan]

Originally Posted by browna

Well, not sure if we're arguing over semantics or not, but having gone through this procedure last year, all but confirmed that sales tax is not charged by dealers if you prove you're an out of state buyer, in most states. My experience is with Nevada, Washington, Utah and Oregon.

For example:
http://www.carburner.com/index.php?title=Washington

I didn't realize you were referring only to out of state buyers. Seems odd. I am pretty sure I can't get out of GST if I prove I don't live in Canada!

I honestly don't know the rules for sales tax on large purchases for out of state buyers.

Either way, the tax you would pay upon registering the vehicle is NOT sales tax.