Importing new cars from the US

[HockeyPuck]

Originally Posted by Draug

How so?

I think it has to do with MB not affixing a compliance label that all cars in NA are supposed to have. I guess they protect their markets this way cuz you have to pay some fee to MB to get this label if you want to import the vehicle.

Is this right Tim?

[metallicat]

I've read that it is tough to get financing in Canada before the car is brought back from the US, and a Canadian cannot get financed through a dealership in the US. I wasn't really looking at bringing back a 10k car, more along the lines of a Corvette or an Escalade. But if you need to buy the car straight up with cash, that makes things a little difficult.

[Burninator]

It doesn't really matter what Honda USA says because they won't be the ones fixing it. If Honda Canada says they won't fix it, then you are SOL for getting it fixed on this side of the boarder.

[arsenal]

Originally Posted by oilers_fan

I've read that it is tough to get financing in Canada before the car is brought back from the US, and a Canadian cannot get financed through a dealership in the US. I wasn't really looking at bringing back a 10k car, more along the lines of a Corvette or an Escalade. But if you need to buy the car straight up with cash, that makes things a little difficult.

That's what a personal line of credit is for. That way you don't have to deal with the whole financing thing, and you just buy it out right.

[greyshep]

Originally Posted by HockeyPuck

I'm currently in the process of getting my Toyota registered up here. I just brought it up a couple of weeks ago. Pretty simple process. The border crossing guy said that they get 50 cars a day at the crossing (Sweetgrass, Montana). So that's 1500 cars/mo at that border crossing! I wonder how much is done at Vancouver and Toronto areas... So a lot of people are doing what you are planning to do. The savings are just too much to pass up (if you're in the market for a vehicle).

Agreed. I bought a trailer in Montana last spring. It was painless and we saved a lot of money.

After looking online at some of the prices down there on cars, I am tempted to make a road trip.

I was considering looking into a 1 way fare to LA to scope out some of the options that I find online and hopefully drive my new car home. Would make for a fun road trip. Even better if I can time it for the start of the season and catch an NHL game while I am down there.

[photon]

Originally Posted by arsenal

That's what a personal line of credit is for. That way you don't have to deal with the whole financing thing, and you just buy it out right.

Only downside with that is your interest rate will likely be higher than any offers through the dealer.. that's one thing to factor in when deciding if it's cheaper to go to the US or not.

[metallicat]

But if you can flip the car right away, it shouldn't be that much of an expense. With that said, anyone want to buy a 2007 Corvette for 100,000k CDN?

[Sylvanfan]

If you were using the line of credit to buy the car and do it as a bussiness in which you report the profits as income, couldn't you technically write off 50% of the interest, the expensese to go down and get the vehichle, but you'd have to report it as income. Although the government will have a record of you doing this, and may come after you claiming you did it as a means of making an income.

Although I think you're on the right track to pick like an Escalade or Corvette. The higher the price, the higher your margin should be. I'm going to the bank tommorrow to get a HELOC and use it for this very thing!

[CRXguy]

NOTE: NEW WARRANTY STATEMENT, June 21, 2007

from Subaru or America (SoA) and Subaru Canada Inc (SCI).
The statement basically says the US warranty is now officially honored for Canadians purchasing US models, and simply that warranty work has to be done at either a US dealer OR if at a Canadian Subaru dealer, paid for by the customer and then reimbursement comes to the customer from SoA.
This is effective June 21, 2007 and applies to any year new or used U.S. spec Subaru purchased by a Canadian resident and immediately registered in Canada.
Yes it is retroactive. Yes it applies to used cars US spec cars previously registered in the US, purchased in the US, and then immediately registered in Canada.

the statement
June 21, 1007
Dear Subaru Dealer
Re: change of warranty reimbursement for Canadian citizens purchasing a Subaru
Subaru of America (SoA) has formalized a reciprocal warranty agreement with Subaru Canada Inc (SCI). There are important elements to this agreement which have changed that will impact the procedure for certain warranty claim reimbursements.

Procedure Change
If a Canadian citizen purchases a Subaru vehicle in the US with the intention of immediately registering the vehicle in Canada, they must be notified by the selling dealer that the Subaru Limited warranty specifically states, "Any and all repairs must be performed by an authorized Subaru Dealer in the United States." Therefore, Canadian residents who purchase a Subaru in the US, then registers the vehicle in Canada, will have 2 viable options for obtaining warranty repairs.

1. return the car to the US for all warranty repairs at an authorized Subaru dealer at no charge, or
2. Have the car repaired at an authorized Canadian Subaru dealer, pay for the repairs, then submit a copy of the repair order marked "Paid" for reimbursement to SoA through the CDS (customer dealer services), address Subaru of America, Inc, Subaru Plaza, PO Box 6000, Cherry Hill, New Jersey, 08034-6000, USA, phone 800 SUBARU3.

In the interest of full disclosure to the Canadian purchaser, please ensure that all sales personnel and aware of this warranty limitation and the requirement to notify the customer.
Procedures which did not change.

Subaru owners with a permanent US residence (address) who are owners visiting Canada or Canadian owners visiting the US will mutually be able to obtain warrantable repair in the country they are visiting under the terms of the respective warranty. This element is unchanged from previous agreements and has been in practice by both SoA and SCI for some time. It is important to note that a Canadian citizen repatriating to Canada after purchasing a Subaru in the US and registering it at a US address may obtain warranty repairs at an authorized Subaru dealer in the US or Canada without having to pay for the repairs first. This also holds true for a US citizen relocating to Canada after having registered their
Subaru in the US.
SoA has agreed to perform warranty repairs on all Canadian Subaru vehicles under terms of the Canadian warranty regardless of the customer's residency without requesting payment directly from the customer.

[Draug]

Originally Posted by Sylvanfan

Although I think you're on the right track to pick like an Escalade or Corvette. The higher the price, the higher your margin should be. I'm going to the bank tommorrow to get a HELOC and use it for this very thing!

Beware. I dont know about Escalades, but I recently looked into Corvettes and there were 9 or 10 of them listed in that issue of the Autotrader. It was pretty obvious that at least 7 of them were people reselling US Vettes.

One of two things is going to happen. Either the resale value of used cars is going to drop (so you wont make very much), or people just wont be able to sell them (and you'll be keeping a corvette at a high interest rate). Afterall, who is going to buy a used Vette when they can go get a brand new one themselves from the US for less money. It is becoming common knowledge that the importation of new cars makes huge financial sense.

I was going to import and sell a Vette too, but decided against it for the time being. I'll see what situation exists next spring.

[Fozzie_DeBear]

I was thinking of doing the same for a motorcycle...for example a 3rd generation Honda Magna in the US costs ~4k (all in) for one with ~15k km...I have yet to see that same bike for sale locally for less than $6k most go for more than $7k with more miles

Not a shabby margin, do it about 15 times and it is the same as flipping one US car

[HockeyPuck]

Originally Posted by oilers_fan

I've read that it is tough to get financing in Canada before the car is brought back from the US, and a Canadian cannot get financed through a dealership in the US. I wasn't really looking at bringing back a 10k car, more along the lines of a Corvette or an Escalade. But if you need to buy the car straight up with cash, that makes things a little difficult.

You have to also be careful for Corvettes. I believe the American Corvette bumper doesn't conform to Canadian Safety standards. This would be an expensive modification you would have to make after importing into Canada. Most other vehicles only need daytime running lights and a child safety harness installed in order to pass the required out-of-province inspection. Call the RIV office before you import any vehicle to find out what mods need to be done before you purchase your vehicle (especially Corvettes).

[Fozzie_DeBear]

It would also be interesting to know which 'Japanese' cars are, in fact, manufactured in N America and thus not subject to the 6% duty...the only one I know for sure is the Acura MDX (not sure which model year though)...anyone know any others?

[Burninator]

I believe Nissan is assembled in North America, specifically Mexico.

[Bertuzzied]

Originally Posted by Fozzie_DeBear

It would also be interesting to know which 'Japanese' cars are, in fact, manufactured in N America and thus not subject to the 6% duty...the only one I know for sure is the Acura MDX (not sure which model year though)...anyone know any others?

All the mazdas are made in Japan. All of Honda's hybrids are made in Japan and the TSX is too.

You can check by the VIN number. Anything that starts with a J is made in Japan. I believe anything manufactured in the Canada or the US starts with a 1 or a 2.

[HockeyPuck]

Originally Posted by Kobatuzzied

All the mazdas are made in Japan. All of Honda's hybrids are made in Japan and the TSX is too.

You can check by the VIN number. Anything that starts with a J is made in Japan. I believe anything manufactured in the Canada or the US starts with a 1 or a 2.

Yup, just check the vin and you can know where your vehicle is manufactured.

http://en.wikipedia.org/wiki/Vehicle...ication_number

Are you sure Mazda's are all made in Japan? I thought Ford bought them....

[Bertuzzied]

Originally Posted by HockeyPuck

Yup, just check the vin and you can know where your vehicle is manufactured.

http://en.wikipedia.org/wiki/Vehicle...ication_number

Are you sure Mazda's are all made in Japan? I thought Ford bought them....

Yup. I didn't believe it either since some of their cars drive like Fords(not good). Even though they are owned by Ford they are all manufactured in Japan.

[Sylvanfan]

Originally Posted by Draug

Beware. I dont know about Escalades, but I recently looked into Corvettes and there were 9 or 10 of them listed in that issue of the Autotrader. It was pretty obvious that at least 7 of them were people reselling US Vettes.

One of two things is going to happen. Either the resale value of used cars is going to drop (so you wont make very much), or people just wont be able to sell them (and you'll be keeping a corvette at a high interest rate). Afterall, who is going to buy a used Vette when they can go get a brand new one themselves from the US for less money. It is becoming common knowledge that the importation of new cars makes huge financial sense.

I was going to import and sell a Vette too, but decided against it for the time being. I'll see what situation exists next spring.

Yeah, my statement is made as a more tongue in cheek comment as opposed to what I actually intend to do. I do agree that one has to really analyze the market and be 100% sure that they can indeed turn a profit on the vehichle before they consider attempting such a venture. Doing it on a small scale would be risky because me as an individual can not offer financing on the vehichle ....which a bussiness that does so en masse can. So right there I'd lose a good chunk of the vehichle buying public. I still think something like an Escalade is better than a Vette though. I think the behemoth SUV can be driven in all seasons and hence would appeal to more people. Whereas the Vette is for people who have an extra 80 grand to burn on a vehichle they're going to stuff in their garage 8 months a year. Today being August 1st, means you have what 10 weeks until the snow comes and people looking for Vettes will be in a position where they don't need it and will only buy it if they think it's a steal sort of thing.

[ken0042]

What you guys should do is write into TLC and see if they will do a show based on you called "Flip This Vehicle." You could have plot lines like how everything was going well, but then you found you had to replace the bumper......

[Sylvanfan]

Originally Posted by ken0042

What you guys should do is write into TLC and see if they will do a show based on you called "Flip This Vehicle." You could have plot lines like how everything was going well, but then you found you had to replace the bumper......

You mean we can end the show when Autotrader comes by our house and says yeah sell the vehichle for 50 grand. Than we can be like bought for 35 sold for 50 profit = 15 grand. When in reality the vehichle didn't sell for three months and I paid $1900 interest on it, I also had to spend about $6500 in taxes to buy it and bring it up, than I only sold it for 45. In the end it was a big head ache and I made $2200 and my wife left me in the mean time because she became convinced that I was a moron.