If you consider the prices of both new and used cars, the ones in the US are much lower than the ones in Canada. So, if you want to save a few hundred off the sticker price, buying a car across the borders is a wise and attractive proposition.
Is the import worth it?
The US has a much more extensive selection of used cars, and you will get them at significantly lower prices. Here are some factors that will help you understand if buying a car in the US is a wise decision. If you are ready to take the plunge, you should consider the below pointers:
- You should know the current Canadian exchange rate as it can quickly turn your bargain into a big sticker item.
- You should know the taxes and import duties charged on the vehicle. These vary based on the model and make of the car.
- You should check if the car is meeting the stricter safety standards of Canada. You might need to spend some more money to afford the modifications.
How much will the import cost?
The duties and taxes will depend on how fast you want the car to be delivered. Here is the breakdown of the import costs.
- ITN will cost around $200 on every vehicle.
- There is a 6.1% tax on non-NAFTA vehicles as import duty.
- Provincial taxes will be about 7%.
- AC tax will be $100 if the car has air conditioning.
- Excess Weight Tax will be applicable if the vehicle weighs more than 4425 pounds.
- $355 will be the customs clearance charges involved.
What else do you need to consider?
Regardless of the government restrictions, here’s how you can make the import process seamless.
Satisfy the government agencies
Everybody needs to check the government protocols and satisfy the border agencies for smooth transport. This includes Transport Canada, CBSA, CFIA, ECCC, and USCBP.
Ensure the vehicle is admissible
Transport Canada will have a vehicle list that will be admissible for the import. Before buying the vehicle from the US, check if it is on the list.
Carry the right documentation
You must have all the documentation in place. The bill of sale is not enough; you also need titles, recall clearance letters, export certificates, and a manufacturer’s compliance statement.
So, to make the transport process simpler and more accessible, consider to import your car to Canada with Clearit.ca.