Importing

Sunday, March 18th, 2007. Post written by: Jim

High Canadian Dollar, Importing From US Makes Sense!

Yeah, well, the high Canadian dollar these days probably have a lot of Canadian considering importing automobiles from the United States, especially if you live close to the border, and are considering a big purchase. For average cars, the savings vs. pains of going through the importation process may be a high deterrent for most, but if you’re considering a big purchase of a car for say $100,000 then there will be considerable savings that will make the importation process worthwhile.

I’ve been seriously thinking about (pretty much decided) to get myself a brand spanking new Porsche Boxster S (or Cayman S – leaning towards Cayman S atm), and after checking out the MSRPs for the exact same models from the official US vs. the Canadian Porsche websites (Porsche.ca and Porsche.com), the US Porsches cost on average $10,000 to $13,000 cheaper (on the cayman S model), and I did the coversion using an less favorable CAN rate at $1.20 (which is around 1.175 at the time of writing).

Basically, for the Boxster series, I can expect to save $10,000 to $12,000 buying US, and for the Cayman models, i can expect to save ($11,000 to $14,000). The US Cayman S MSRP is $58,900 ($69,200CAD at $1.175), whereas the same Canadian Cayman S lists for $83,300, a discount of $14,100!! Unbelievable…

Importing Cars Into Canada

If the savings weren’t so significant, I might not even consider this route, but $14,000 is a considerable amount. I imagine there would be alot of hassles and paper work and inspections and whatnot after importing it into Canada, so I been doing some research on the subject.

First of all, I had to make sure the Porsche model I wanted is admissible at all into Canada, so I checked here: http://www.riv.ca/english/US_vehicle_admissibility.pdf and no problems there.

Next I need to find out if there will be tarrifs / duties that will make the savings negligible, and according to http://www.naata.org/new%20files/import1.html ”Under the North American Free Trade Agreement (NAFTA), vehicles that are assembled in the United States or Canada do not have any import tariffs. This is indicated by a 1, 2, 4 or 5 as the first digit of the VIN. ” Good…

Now I need to do some research on the entire importing process! Find out what’s involved, and what needs to be done! And maybe that’ll be a good bargaining chip when I go to the Porsche dealer again here in Vancouver! :D Or perhaps I can ask the dealer to import a US Porsche for me instead, or maybe find a dealer specializing in cross border sales.

 Somethings I need to figure out include:

  • - If the US Porsche mfg. warranty extends to Canada – since some car makers are known to void warranties in an effort to stop cross border sales (Why sell a car for $14,000 less, right? But there are rules and regulations to protect the rights of the consumers.)
  • - Also need to find out if I need to pay US taxes on the new vehicle on top of the PST + GST + Luxury car tax that will need to be paid once the car is in Canada


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