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Buying/importing a car from the US into Canada

Buying/importing a car from the US into Canada

Old Aug 11, 2006, 10:12 am
  #16  
 
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I have done all the research, compared costs in Canada vrs. US for the same model of Volvo car (savings of CAD$11000 after duty and exchange), confirmed the warranty applies in Canada, checked the cost of mods (should be $0), and hired a broker to help with the paperwork.

But I have one problem.

The dealer I want to buy from is located in Boston. It appears that if I take delivery of the car in Massachussets, a 5% sales tax will apply. This is non-refundable under any circumstances.

1. I can get around the tax by having the car shipped to Canada for out of state delivery. This, of course, will add to my costs.

2. Is anyone aware of any US states where such a tax will not arise for out of state residents? It would be greatly preferred if such a state was in the Northeast since I am in Ottawa.

3. Does anyone have any other comments about the import process I should know about that I could have overlooked?

Thanks.
Salisbury5 is offline  
Old Aug 11, 2006, 10:23 am
  #17  
 
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Call the dealer and have him sell the car "in transit"...

...thus state taxes wil not apply...if the dealer has not sold to Canadians before he will have to have his Accounting person look up the local codes...friend of mine brought in a Carrera 4 and thats what he did to avoid the state tax.
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Old Aug 11, 2006, 10:31 am
  #18  
 
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Originally Posted by Salisbury5
2. Is anyone aware of any US states where such a tax will not arise for out of state residents? It would be greatly preferred if such a state was in the Northeast since I am in Ottawa.
Thanks.
Did you try New Hampshire? They have no state sales tax... not sure if that applies to cars as well but you should check it out.

Which model Volvo are you buying that it's that much cheaper in the US?

-mike
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Old Aug 11, 2006, 10:55 am
  #19  
formerly known as 2lovelife
 
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Originally Posted by Salisbury5

2. Is anyone aware of any US states where such a tax will not arise for out of state residents? It would be greatly preferred if such a state was in the Northeast since I am in Ottawa.
All I can offer is the states without sales tax.

Alaska
Delaware
Montana
New Hampshire
Oregon

Let us know how you do, please.
seanthepilot is offline  
Old Aug 11, 2006, 11:27 am
  #20  
 
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Thank you all.

I figured out the NH angle after posting. I found a dealer in that state willing to match the Boston price.

Its a Volvo XC90, 5 cyl, all packages.

Best price in Canada: CAD$58,650 plus taxes
Best price in NH: CAD:47,750 after 6.1% duty and exchange, plus taxes of course.

(If you buy an Acura MDX, there is no duty because the car is made in Ontario).

Worth a five hour drive and a $250 fee to hire a broker to do the paperwork.
Salisbury5 is offline  
Old Aug 11, 2006, 11:47 am
  #21  
 
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If one has a relative(Can. citizen) in the US, can the relative gift the car to the person living in Canada?
If so, would there be duty charged as well as canadian taxes?
wali is offline  
Old Aug 11, 2006, 11:50 am
  #22  
 
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Originally Posted by Salisbury5
Its a Volvo XC90, 5 cyl, all packages.

Best price in Canada: CAD$58,650 plus taxes
Best price in NH: CAD:47,750 after 6.1% duty and exchange, plus taxes of course.
I'm in the market for the same volvo. Can you post or pm the details (06 or 06 model; v6 or v8; 5 seat or 7 seat; which packages; dvd etc.)

Thanks!
fly-yul is offline  
Old Aug 11, 2006, 12:10 pm
  #23  
 
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Originally Posted by fly-yul
I'm in the market for the same volvo. Can you post or pm the details (06 or 06 model; v6 or v8; 5 seat or 7 seat; which packages; dvd etc.)

Thanks!
2006
v5
7 seat
all packages (premium, convenience, versatility, climate)
no DVD
Salisbury5 is offline  
Old Aug 11, 2006, 2:07 pm
  #24  
 
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Also looking for a Volvo... keep in mind there maybe some Rebates to Dealer for the XC-90 for 06 models. The XC70 has $4400 rebates available right now.

You can also consider the European delivery program. Cars are available at a discounted price including insurance, sea freight and duty paid back to the US or Canada. Also included are two free tickets to the factory on SAS - although not sure what booking class!

Still trying to find out if Canadians can purchase using the US program (which is cheaper) than the Canadian program.

US link
http://www.volvocars.us/salesandserv...ry/default.htm

Canadian link:
http://www.volvocanada.com/Showroom/...ery.aspx?lng=2
Argonaut1000 is offline  
Old Aug 25, 2006, 10:50 am
  #25  
 
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An Update

I am posting to update you all on the situation.

I reached an agreement with a dealer in New Hampshire last week. I sent a certified cheque and title transferred two days ago. The dealer couriered to me the title document which I signed and then drove down to US Customs near Cornwall, ON. Note that the rules have changed - you now have to present the original title document to US Customs. Faxes won't do. You can either hire a broker and send it to them to present to US customs or you can drive it down yourself.

I called 3 US ports of entry - and 2 of them (Champlain, NY and Highgate Springs, VT) will only accept the document (and the car when you drive up 72 hours later not including weekends and holidays) M-F 8-4.

Massena, NY near Cornwall (closest to me anyway) accepts it anytime and will let you cross anytime. But I would call to confirm (phone numbers on the web).

I stopped in at Canadian customs to inquire as to the process when I bring the car across the border. Basically, its two forms to complete and a credit card for the duty and GST.

I called my insurance company and they will need copies of all pertinent documents in order to add the car to my insurance. They will automatically cover me for 14 days from date of delivery provided I advise them of the VIN.

I pick up the car next weekend (turning it into a family trip). Will keep you advised.
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Old Aug 25, 2006, 11:08 am
  #26  
formerly known as 2lovelife
 
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Well done, and a big thanks for the update!^
seanthepilot is offline  
Old Sep 3, 2006, 6:53 pm
  #27  
 
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The Story Continues

I flew the family to Boston from Ottawa using AP points. We took a shuttle from the airport to the dealer in NH. Picked up the car and drove the car to the mountains for a few days' vacation. (I love the car, by the way).

We then drove to the US port of entry where I had dropped off the title document a week earlier. It took about 15 minutes for the customs officer to check the paperwork and the VIN on the car. He then stamped the title document "Exported to Canada."

I then drove over the bridge to the Canadian customs. I told the officer that I was importing a vehicle and I was asked to park the car and go inside. It took about 45 minutes to pay the GST (6%), duty (6.1%), and get all the paperwork done.

Now I wait for a form to arrive in the mail and then off to Canadian Tire for a safety check. After that, its off to the Ontario Licence Bureau for some plates.

All in all, not a big deal at all so far.
Salisbury5 is offline  
Old Sep 3, 2006, 8:38 pm
  #28  
 
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Originally Posted by Salisbury5
...
I then drove over the bridge to the Canadian customs. I told the officer that I was importing a vehicle and I was asked to park the car and go inside. It took about 45 minutes to pay the GST (6%), duty (6.1%), and get all the paperwork done.
...
Sounds like a good way to do things. I am supposing that our Great Republic of Quebec would ding you for another 7.5% QST to thank you for your efforts. Can anyone confirm?
okazon69 is offline  
Old Sep 3, 2006, 10:36 pm
  #29  
cur
 
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I suggest calling the port of entry directly and ask them to do a value rating on goods through TEPS (pronnounced the way it is spelled). Although FT is a great source of info, it's not as reliable as hearing it from (what I say literally) the horses mouth.
cur is offline  
Old Sep 4, 2006, 7:12 am
  #30  
 
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Originally Posted by okazon69
Sounds like a good way to do things. I am supposing that our Great Republic of Quebec would ding you for another 7.5% QST to thank you for your efforts. Can anyone confirm?
As far as Ontario goes, another 8% PSTwill have to be paid at the time of licensing. It is possible that the QST will be payable at the port of entry ito Canada, but in any event there is no way around the Provincial tax.
Salisbury5 is offline  

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