Buying a new car from the states to Canada

My friend forwarded me this email he got from work. Very interesting! With the Canadian dollars so strong, this is something we can include for consideration.

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Buying Car in US - Importing a new 2005 Toyota Sienna XLE AWD in Canada Dec 2004

NOTE: This document is based on my experiences in importing a new 2005 Toyota Sienna AWD XLE into the province of BC in Dec. 2004. I make no guarantees that any or all of these statements will apply to you, or that the process will work for you in the same way it did for me. CHECK WITH CANADA CUSTOMS BEFORE DOING ANYTHING!

I started researching in BC to buy a 2005 Toyota Sienna XLE AWD Minivan when we were down in Victoria and looked at the models on the sales lot. Toyota has a website in Canada www.toyota.ca, that lists the Manufactures Suggested Retail Price (MSRP). Toyota America has a similar site www.toyota.com

When I checked prices in Canada and the US, there seemed to be a big difference in the MSRP. Considering that at the time I was researching, the Canadian dollar was
hovering around 0.84$US, I decided to proceed with a quote for a new Toyota from the US.

I used www.cars.com as the US web site to research the model, options and colours. I asked for 3 quotes in Portland, Oregon using this website. You will need to know the zip code of the area you want to buy the car in. All the dealers responded within 24hours with their "internet" price. I picked the lowest price at Thomason Toyota
www.thomasontoyota.com in Gladstone, a suburb of Portland, Oregon and phoned the dealer rep. Norine Lecroy 1-800-293 -1677 and we talked a little about what I was planning to do. She had experience of dealing with people who exported cars to Alaska and Hawaii but not Canada. I picked Oregon because it has no sales tax.

I decided to proceed and gave her a deposit of $500 on my Visa. She said that even if I got down there and did not like the car they would not charge me anything. I had already done some research on the web about importing and the following sites give details of how to do it.

www.riv.ca
http://www.cbsa-asfc.gc.ca/E/pub/cp/rc4140/rc4140-e.html
http://www.customs.gov/xp/cgov/export/export_docs/motor_vehicle.xml
http://www.mr2.com/TEXT/Import.html

Before I flew down the dealer phoned to say the car was on order and later provided me with the VIN number of the vehicle, which allowed me to obtain a "Binder of Insurance" from ICBC to bring the car home from Oregon. I opted for the $5 mill liability and comprehensive and collision. The deductibles on these are $2500! You can't get less deductible than that. Cost was $127.00.

I flew down on the Air Canada Jazz from Vancouver to Portland airport ($150) and Norine met me at the airport in my car. We drove back to the dealership to do all the paperwork. They are quite a lot of forms to fill out so I would allow a couple of hours to do that. The dealer accepted a Bankers Check from my Credit Union in US funds. They charge $50 to do all the paperwork but they did provide me with a free trip permit for 14 days which is good to get you all the way home. They normally cost $20. The experience with the dealer was great.

The Toyota I bought is manufactured in the US so there is no duty to pay when importing into Canada. One thing I have learnt in this process is not to believe what you read in the publications by both governments as they are written to cover a
multitude of situations.

For instance, nowhere does it say you can import your new car into Canada with only a Manufacturers Statement of Origin (MSO) and a bill of sale. The publication says you have to provide title and registration. You can't register a new vehicle in Oregon if you don't live there and titling takes 4 to 6 weeks in Oregon! Go figure.

Similarly, the US customs requires you to notify them 72 hrs in advance of your arrival at the border. You have to phone them and they will fax you a form, which you fax back along with a copy of your MSO and bill of sale. The dealer won't give you the MSO until you buy the vehicle, so that means you either pay for the vehicle in advance or you have to stay in the US for 72 hrs before you can stop in via the US customs. You can only show up at US customs between 8:00am and 3:30 pm Monday to Friday and you can only phone them between 2 pm and 4pm to check on the status of your submission to them.

So I had my dealer fax the US customs all the info as soon as I completed the sale of my vehicle and when I phoned the next day to make sure they received it they said I did not need to stop at US customs as the new vehicle is not registered nor titled!

While researching the procedures beforehand, I got about 3 different versions of what I was supposed to do at both border crossings!

When I showed up at the border the next day, I went straight to the customs at the truck crossing, where the customs were great and very friendly. I paid GST on the US price converted into $CDN funds. That is a saving over what you will pay based on a Canadian vehicle.

You also pay $182 for the Registrar of Imported vehicles (RIV) to handle your registration papers. You receive a copy of form 1 at the border and the customs is supposed to send/fax a copy of form 1 to RIV. Then within 10 days you should receive your form 2 in the mail, which allows you to take the car in for Fed. and Prov. Inspection at Canadian Tire.

Again, I waited and waited for the form 2 to arrive in the mail and finally phoned RIV to discover that Canada customs had not sent the form 1 and RIV had no record of the car or me. So, I faxed them my copy of form 1 and complained enough for them process my form 2 in 24 hrs and fax it back to me.

Also, at the border, Canada Customs suggested I should have my MSO stamped with a US export stamp just in case, so I had to walk back to US customs with the paperwork.

Initially they said come back in the morning but the car was already in Canada by then. After much shuffling about and phone calls, they agreed to stamp the MSO but wanted to check the VIN number of the car! So, I had to walk back to Canada and drive the car back into the US for them to check the VIN number. They finally stamped my MSO with the export stamp and I was on my way back to Canada. The last thing the US guys told me was that they did not think I needed the export stamp anyway! That procedure took at least an hour. By the second time I entered Canada I was a nervous wreck!

Anyway, armed with my form 1 and 2, my recall letter faxed to me from Toyota US and my MSO, I finally had my inspection at Canadian Tire on Xmas eve. Some things that a car imported into Canada needs; daylight running lights, kmh on the speedometer and child restraint equipment. My Toyota had all of these. The inspection was basically a formality as the car is brand new. The Federal inspection is included in the fees paid at the border but the Provincial inspection costs $70 pus tax.

I took out a one-day temp. moving permit from ICBC ($25) to get the vehicle there and then I was able to license and insure the vehicle, at which time I paid the 7% Prov. Sales tax on the converted $US cost of the car. However in BC, the car would have been charged 10% PST, as it would have cost over $47000. I paid less than that amount for the car in the US. Another saving!

So was it worth it.yes. I am retired and had the time to go down there to pick the car up. My total expense for the trip including all permits etc was $1047 CDN.

So taking into account these costs, comparing the cost I paid for the car in the US and the Canadian MSRP including all taxes etc, the difference is $14,207 CDN. See the cost breakdown below.

Having said that, you have to make sure that you are comparing apples to apples, as there are more option packages available for my Toyota Sienna XLE AWD in the US than in Canada. The same vehicle in Canada comes loaded with additional bells and whistles that I did not really need or want to pay extra for. So, my savings were even greater because I was able to order a car in the US with fewer options than in Canada.

Would I do it again.yes. I think I learnt a whole lot about the beaurocracy involved with both governments. The first time is always the hardest. Basically, don't necessarily believe everything you read or hear and ask lots of questions. Get a second opinion if unsure and always ask for the names of the people you spoke to. Save every last piece of paper you have until the whole process is finished.

Good luck!

tleeming Dec. 2004

2005 Toyota Sienna AWD XLE cost

MSRP Actual Cost Actual Cost MSRP DIFF.
Model $US $US $CDN $CDN $CDN
Toyota Sienna XLE 7 pass AWD 32230 34131 42019 54020 12001
XLE Option Package #9 (GK) 2870
Carpet floor mats/Door sill protector (CF) 196
Rear Spoiler (RF) 485
Delivery, Processing, Handling Fee 565

GST in Canada 2964 3,781 817
PST in Canada 2956 5,402 2446

Total 36346 34131 47939 63,203 15264

Additional costs
Federal inspection and registration 182
Dealer Documentation 50 62
Oregon 21 day temp moving permit 20 25
Provincial safety inspection 84
Air cond. Levy 100
B.C Binder of Insurance 127
B.C.1 day Temp. Operators Permit 25
Gabriola flight to Vancouver 75
Taxi to Airport (shared) 7
Vancouver To Portland flight 150
Gas...full tank by dealer 0
Food 75
Ferry 35
Travel Insurance 21
Accommodation 63 80

Sub-total 1047

Total 48986 63,203 $14217

Other threads of interest:
http://www.redflagdeals.com/forums/showthread.php?t=307601

Any one been to Ottawa Lynx?

I got a suite for a game and wonder how the food there? The game will start at 12:05 PM. For us to leave our office in Kanata and drive there, it will take about 30 minutes. This means we have to leave at 11:30 AM and we will not have time for lunch. We will have to eat hot dogs at Lynx's restaurant or order food from the suite. Any recommendation?