I'm a Canadian citizen who will be graduating college (in the U.S.) in May. I've been looking at financing/leasing a car, which will, in large part, be a graduation present from my dad. In between the current exchange rate, US vs. Cdn taxes, and the difference in price between the same car in Canada and the U.S. (an S4 in this case -- $45k in US vs. $53k in Canada), purchasing it in the U.S. seems like a no-brainer. Given that I'm on a student visa, I'm classified as a US resident; thus, as far as Canada is concerned, I am a visitor and will be for 60 days after I graduate. As far as I know (and what has seemed to be the case), I can buy whatever I want in the U.S. while I am a student as long as it's for me. So it would seem my situation would be analogous to someone who worked in the U.S., had a car, and was transferred/moved to Canada and brought the car with them. Does anyone have any experience with this and how financing/leasing may work? Any potential risks (ignoring exchange-rate risks)? At first glance, it appears as if I can save ~$10k doing this. And yeah, I know I'm a spoiled brat for getting an S4.
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Buying a car in USA and moving to another country
post #2 of 25
3/13/10 at 12:02am
The difference is that I am currently a legal resident of the U.S., although that residency will expire in July.
post #4 of 25
3/13/10 at 12:08am
Quote:
I don't think students are considered residents,you are non-resident.
I'm not a *permanent resident* (as in Green Card), but Canada considers me a visitor -- for the last four years, I have filled out my customs cards as a visitor and not had to pay duty (or been asked to pay duty) on anything I bought in the U.S. I was told by a Canada customs agent to write my home address as my U.S. address and similarly by U.S. customs agents. I'm on a student visa which isn't a whole lot different than a work visa.
Look, this is a serious question -- I would like to save $10k and I think any of you would, too. If you don't know, don't comment, please. Thanks.
post #6 of 25
3/13/10 at 12:16am
- Piobaire
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Quote:
I'm not a *permanent resident* (as in Green Card), but Canada considers me a visitor -- for the last four years, I have filled out my customs cards as a visitor and not had to pay duty (or been asked to pay duty) on anything I bought in the U.S. I was told by a Canada customs agent to write my home address as my U.S. address and similarly by U.S. customs agents. I'm on a student visa which isn't a whole lot different than a work visa.
Look, this is a serious question -- I would like to save $10k and I think any of you would, too. If you don't know, don't comment, please. Thanks.
Look, this is a serious question -- I would like to save $10k and I think any of you would, too. If you don't know, don't comment, please. Thanks.
Why not call Canadian Customs? See if you'll be subject to PST and/or GST. Btw, if not, you're going to save much more than 10k.
Quote:
Why not call Canadian Customs? See if you'll be subject to PST and/or GST. Btw, if not, you're going to save much more than 10k.
Don't want them to get wise to the whole operation!
Actually, I'm having my dad look into it through his lawyer/account/customs guys...he's an importer so he should be able to get some kind of answer. I was just curious if anyone here has had actual experience.
How do you figure much more than $10k? In Canadian dollars, it's about $46k pretax in the U.S. and $53k in Canada. Figure I can bargain those down to $44k and 51k. Slap on 6% tax in PA and 13% in Ontario, and we have $46.5k and $60k. Actually, writing it out, you're right. Even if I pay duty on the car, how bad could it be? $3,000? I still save 10k.
post #8 of 25
3/13/10 at 10:35am
Quote:
I'm not a *permanent resident* (as in Green Card), but Canada considers me a visitor -- for the last four years, I have filled out my customs cards as a visitor and not had to pay duty (or been asked to pay duty) on anything I bought in the U.S. I was told by a Canada customs agent to write my home address as my U.S. address and similarly by U.S. customs agents. I'm on a student visa which isn't a whole lot different than a work visa.
Look, this is a serious question -- I would like to save $10k and I think any of you would, too. If you don't know, don't comment, please. Thanks.
Look, this is a serious question -- I would like to save $10k and I think any of you would, too. If you don't know, don't comment, please. Thanks.
post #9 of 25
3/13/10 at 11:01am
- Piobaire
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Quote:
Don't want them to get wise to the whole operation!
Actually, I'm having my dad look into it through his lawyer/account/customs guys...he's an importer so he should be able to get some kind of answer. I was just curious if anyone here has had actual experience.
How do you figure much more than $10k? In Canadian dollars, it's about $46k pretax in the U.S. and $53k in Canada. Figure I can bargain those down to $44k and 51k. Slap on 6% tax in PA and 13% in Ontario, and we have $46.5k and $60k. Actually, writing it out, you're right. Even if I pay duty on the car, how bad could it be? $3,000? I still save 10k.
Actually, I'm having my dad look into it through his lawyer/account/customs guys...he's an importer so he should be able to get some kind of answer. I was just curious if anyone here has had actual experience.
How do you figure much more than $10k? In Canadian dollars, it's about $46k pretax in the U.S. and $53k in Canada. Figure I can bargain those down to $44k and 51k. Slap on 6% tax in PA and 13% in Ontario, and we have $46.5k and $60k. Actually, writing it out, you're right. Even if I pay duty on the car, how bad could it be? $3,000? I still save 10k.
Also, what is the gas guzzler tax? I remember it was 3.2k on a Jeep Cherokee when I left Ontario in the 1990s. I can't see that tax has declined.
post #10 of 25
3/13/10 at 11:21am
I have done this and I'm a citizen and resident of Canada. I brought over a 350Z for $12k less and after all was said and done, saved $8k. You pay GST at the border, but you pay GST on all cars purchased in Canada anyways. Here's your steps 1) Check to see if it is admissible at http://www.tc.gc.ca/roadsafety/safev...ist2/VAFUS.pdf 2) Call Audi (1-800-822-2834) will sell to Canadians on border towns and whether the warranty is valid in Canada. I know Honda does not do either. You may have to go one state deep before anyone will sell to you, although this only applies to new vehicles. 3) Get insurance in Canada. 4) Call the dealer you are interested in and tell them to fax the Certificate of Title to the border crossing. Do this for all cars you are mildly interested in. Must be done 3 days in advance - although I got by with 2 days. 5) Pay 5% GST and duties, depending on whether the car is made in USA or Canada. An S4 is assembled in Germany and hence you will pay duties. 6) Eventually get the proof of recall clearance from the dealer. 7) Register your vehicle. In all likelihood it will be cheaper, just a bit of a pain in the ass.
post #11 of 25
3/13/10 at 11:22am
Quote:
Contrary to that border agent, I don't think you are supposed to declare yourself a visitor to Canada. You present your Canadian passport, don't you? I'm in a similar situation (Canadian studying in the US), and we are considered "nonresident aliens". It is not similar to a work visa. Doesn't bar me from having to pay social security benefits I'll never recover though . . .
Quote:
I have done this and I'm a citizen and resident of Canada. I brought over a 350Z for $12k less and after all was said and done, saved $8k. You pay GST at the border, but you pay GST on all cars purchased in Canada anyways. Here's your steps 1) Check to see if it is admissible at http://www.tc.gc.ca/roadsafety/safev...ist2/VAFUS.pdf 2) Call Audi (1-800-822-2834) will sell to Canadians on border towns and whether the warranty is valid in Canada. I know Honda does not do either. You may have to go one state deep before anyone will sell to you, although this only applies to new vehicles. 3) Get insurance in Canada. 4) Call the dealer you are interested in and tell them to fax the Certificate of Title to the border crossing. Do this for all cars you are mildly interested in. Must be done 3 days in advance - although I got by with 2 days. 5) Pay 5% GST and duties, depending on whether the car is made in USA or Canada. An S4 is assembled in Germany and hence you will pay duties. 6) Eventually get the proof of recall clearance from the dealer. 7) Register your vehicle. In all likelihood it will be cheaper, just a bit of a pain in the ass.
Biggest issue is financing. How do you get it for the cars you've bought? It seems as if it's unobtainable in the U.S. for Canadian citizens or people who otherwise do not have SSNs. Finally, why don't I pay PST?
post #14 of 25
3/13/10 at 1:04pm
chrisjustinparr advice is pretty much spot on. As far as financing goes, no one in the US will give you financing if you're exporting the car to Canada. They want the car to stay in the country where you have the financing in case you default on payments and they have to repo it. That means you will need cash or have to make arrangements for financing it in Canada. Customs and duties are a fact of life you just have to deal with. The only way to be 100% sure about the rules for your situation is to call Canada customs and speak directly to them, after all, they're the final authority on how much you get charged. If you find a way around this on account of your student visa, I'd be quite interested to hear it. This is why most auto dealers don't bother importing foreign made vehicles from the US, they specifically focus on bringing in the ones assembled in the US because the import duties they pay at the border basically kills any savings in alot of cases. You say you'll save $10K by bringing it in, but talking to car dealers I've worked with, it generally costs around $4K end to end to bring the car into Canada for them. Since you're doing it as a one-off if might cost you a little more. Keep in mind you probably need to get some work done on it light modifying the bumper and getting daytime running lights to comply with Canadian laws as they differ slightly from American laws. This leaves you with potential savings of $6K... before you even deal with duties. I have no idea how much duties will be, but if you're paying something like 10% duties, it probably won't even be worth it to buy it from the US and you may as well just pick it up at a dealership in Canada and save yourself the headache.
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