Importing a used or new car into Canada from the U.S.

Here is a big money saving tip, if you want to get ripped off…. I mean if you really want to get ripped off. Buy a car from a Canadian car dealer. Its no wonder that they are referred to as “stealerships” instead of dealerships because, literally; they earn a living off of screwing you. Canadian car dealers are importing cars by the semi-trailer, day after day. Why is that? Because the car and truck market in British Columbia is an inflated bubble, much like our real estate market. They buy cars in the United States, swap out the speedometers, and tack on an extra $7000. You can save 20% to 30% of your next car purchase by simply driving 30 minutes across the border. The last three cars I have owned, I have saved over $16000 combined by importing the cars myself and skipping the dealer. The best part is, the process is simpler than you think. If you follow the steps below, you can have your car across within a couple of days. I have helped my friends buy cars, helped with the transfer process, and I have saved them thousands.  I have brought dozens of cars across the border, and I want to help you save money too!

First step:

1. Check to see if the car/truck is admissible into Canada.  If the vehicle is older than 15 years (based on date of manufacture), it is admissible.  If it is not 15 years or older, then check to see if it is allowed.  I know, it is silly.  They automatically let the old relics in, but some newer vehicles are deemed inadmissible due to “safety concerns.”  But hey, give it a few years and once those vehicles pass the 15 year mark, they too are admissible.  Just another way for the government to make money.  Bureaucracy = $$$.  It’s for your safety of course

Aside from that, before even contacting the buyer, it is better not to waste each others time; check to see if the car you want to import is even allowed into Canada. It might seem like common sense that every car allowed in the US is also suitable for Canada. The answer is NO. Check to make sure that both the year and the model of your car are admissible.  That is an important one.  If you purchase a car that is inadmissible, they will not let you import it.  The good news is that there is a government run website (Registrar of Imported Vehicles) where you can check just that.  It is also updated periodically so you can assume the information on there is correct and current.  Again, if your car is not on the list, you cannot fight or appeal to import it.  There has never been a successful attempt and you will be denied.

Check admissibility here and you should also call to confirm by phone if you are unclear.

EVEN IF THE CAR IS ADMISSIBLE, SOME VEHICLES REQUIRE MODIFICATIONS TO THEM SO THEY PASS THE TRANSPORT CANADA SAFETY INSPECTION. IT WILL SAY ON THE RIV WEBSITE IF/WHAT MODIFICATIONS NEED TO BE DONE.  SOME MODIFICATIONS MAY COST THOUSANDS, AND IT MIGHT NOT BE WORTH YOUR WHILE.  CHECK THE LIST CAREFULLY TO MAKE SURE THE YEAR/MODEL OF THE VEHICLE IS ADMISSIBLE AND NO MAJOR MODIFICATIONS NEED TO BE DONE.

In my experience, the only modification I had to do were daytime running lights on every car that I imported (Canada requires it, but not standard in most US cars).  I also had to install child seat tethers on a Dodge once (you can buy it as a kit from Chrysler).

IMPORTANT NOTE: For those of you interested in importing MERCEDES-BENZ and BMW/MINI vehicles.  To get your vehicle inspected with transport Canada, you must obtain a recall clearance letter from the automobile manufacturer.  This is mandatory, you need this to pass the inspection.  Mercedes-Benz and BMW in their graciousness to squeeze every penny out of you, deny recall clearance letters to those who do not get the necessary modifications performed at their stealerships.  So they install daytime running lights, child seat anchorages, install metric speedo labels; charge you a couple thousand for a few hours work and still come ahead of the game.  Shame on the Canadian government for letting this happen, but what can you do.  My approach is to boycott them entirely. There are far better luxury cars out there in my opinion (Lexus, Acura, Audi) that don’t require you to go to their stealerships for the recall letter.  Anyways, there is more info about the recall letter later on in the inspections section.

2. The second step, if the car you are interested in is newer and still under warranty, you should check to see if it will be honored in Canada.  You can check it out here.  Some manufacturers will honor the US warranty in Canada and some will not.

3.  The third step is to see if their are any liens on the vehicle.  A lien is a notice that a loan has been taken out and the vehicle is being used as collateral.  A lien always stays with the vehicle, even if it is sold.  In other words, if you buy a car with a lien on it and the loan defaults, they can seize your car to pay for the outstanding amount owed.  You can order a carfax or see the title, either one should have the lien reported on it.  It is always  a good idea to check for a lien whether you buy a used car in Canada or the United States; you never know.

4.  Ok, so now you did your research.  The car is admissible, there are no liens, and you have come to an agreement on a price with the seller.  Once you sign the transfer papers, the car is in your name!  If anything happens to it, it is your responsibility.  Now is a good time to buy insurance for it. You cannot buy US insurance for the car unless you register it at the state DMV.  To register it, you have to pay state taxes.  In short, DO NOT REGISTER IT.  Call ICBC at 1-800-328-4484 or go to an autoplan broker if your in BC.  They will issue you an insurance binder which covers your vehicle so it can be driven back through Canada and the US.  This Binder expires as soon as you enter BC, after which you need to go to an autoplan broker and get a temporary operating permit before driving it across the border.

5. Now, you need to export the car from the United States.  This is a mandatory step required by the US government.  You need to submit the export documentation 72 hours prior to showing up at the border

The following is an excerpt of what you need:

REQUIRED EXPORT DOCUMENTS IN ADDITION TO ANY BILL OF SALE (19CFR192):

1. Original title, front & back. This includes flood, rebuilt, salvage, etc.
2. Copy of title certified by state DMV/DOL. Certifications by notary publics, Insurance agents, lending institutions, and other private organizations are not acceptable.
3. Original title abstract, printout, or letter issued by state DMV/DOL bearing an original state certification.
4. Original Manufacturer’s Statement of Origin (MSO) for newly manufactured vehicles not yet issued a title.
5. Written documentation that the vehicle does not require a title. A citation from state, motor vehicle regulations or a letter from a DMV/DOL official will satisfy. In addition, the exporter must certify in writing that the purchase is a bona-fide transaction and the vehicle is not stolen.
6. If the title shows ownership by any party other than the exporter and does not show release of interest, the exporter must provide an original letter of the owner’s lettehead granting permission to export. This letter must fully identify the vehicle and provide contact information for the lien holder or owner.

In other words, you need to present a bill of sale and the original US title of the vehicle for processing.  You should  read up on the details (hours of operation, where and when to check up on progress, etc…) here on this .PDF: blaine information packet

Then print and fill out this: blaine export worksheet

The main point you should know is that you need to submit the papers AT LEAST three working days before exporting and THE CAR HAS TO STAY IN THE USA DURING THIS TIME, NO EXCEPTIONS! You should call to make sure all the paperwork is done and everything is OK before showing up at the border.  I find the best way to do it is after you pay for the car, fax the worksheet, bill-of sale, and title right away.  Then, as the vehicle is in transit, the documents should clear.  All you need to do is show up with the vehicle being exported at the US border when all the docs are clear.  Someone will come out, check the VIN, stamp your form and you are good to go.  If the documents cannot clear before you arrive at the border, the car will need to stay in the USA until they do.  You can store the car for a small daily fee at Yorkey’s Gas Station in Blaine.  The location and contact info is in the information packet I have attached above.  That is where I have stored all the cars I have imported to date (when I had too).  Like I said before, you need to fax the papers to customs at least three business days before you plan to export. If you faxed the info on a Thursday, for example, including the weekend, you can probably export it by next Thursdays.  Its a pain but it has to be done.

6.  After getting the export form stamped, its off to the Canadian border.  Tell them at the border crossing that you are importing a car and they will steer you in the proper bay.  You will then pay the proper taxes (GST and PST), duty (if applicable) and a RIV fee (depends on what you import, but around $200).  You can pay this fee with debit, credit card, or cash at the border. They will inspect the car and issue a form 1.  Now you can drive your car home!  Make sure you went to autoplan before-hand and bought a temporary operating permit, the binder expires once you enter BC.

Note: Foreign built cars (cars that are not manufactured in North America) are subject to duty.  So if you are buying a domestic – Ford, Doge, Chevy, and some models of Honda, Toyota, etc that are built in North America- you do not pay the duty.  The rate varies from country to country of vehicle origin, so it best to call Canada Customs and check to avoid a surprise later on.

Congratulations, the vehicle is now in Canada!  The next section Inspecting and Registering your vehicle, will deal with Transport Canada and ICBC inspection procedures.