Buying A Vehicle In The United States - What You Need To Know

With the strong Canadian dollar and low US prices many Canadian consumers are choosing to make their next vehicle purchase in the United States

Although the price savings can be substantial many cross-border shoppers overlook some of the requirements and additional costs associated with importing a vehicle into Canada. Before purchasing a vehicle in the United States research should be done to determine the qualifications, additional costs and insurance implications.

Does Your Vehicle Qualify?

Many vehicle models will require modifications before they are admissible to Canada and some vehicles may not be admissible at all regardless of modifications. If you are looking at a specific vehicle it is important to check the admissibility and the cost of required modifications prior to purchase. The cost of modifications may be the same or more than your savings by purchasing in the US. The availability of parts for the modifications is also an important consideration for the timing of your import.

For Transport Canada’s list of Vehicles Admissible from the United States visit:

Additional Costs

In addition to the cost of modifications there are other associated charges such as duty and taxes. It is important to also take these into consideration. Canada Border Services Agency is responsible for assessing and collecting duty and taxes. The can be reached at 1-800-461-9999 or http://www.cbsa-asfc.gc.ca/publications/pub/bsf5048-eng.html

Insurance Implications

Once you have purchased the vehicle it is your responsibility to insure it and it is illegal to drive a vehicle without insurance. Unlike when a vehicle is purchased in Ontario there will be a time delay between the purchase date and vehicle registration and plating. This is due to the importation process and the time required to complete the required modifications. Your existing automobile insurance policy may not provide coverage.

It is extremely important to contact your insurance professional PRIOR to purchasing a vehicle in the United States to arrange for the appropriate insurance coverage.

You should ask your broker about the following things:

• Can the vehicle be added to your policy at the time of purchase?
• If it can not be added until it is licensed in Ontario what about newly acquired auto coverage?
• If it can be added right away, within what time frame do you have to license the vehicle in Ontario in order to keep the insurance valid?

It is also important to have valid plates if you are driving the vehicle. Many states will issue temporary plates in these cases but after they run out you will not be able to obtain a new Ontario plate until the modifications are completed and the vehicle is licensed with the Ministry of Transportation. If the vehicle must be moved after the temporary plates expire you will have to tow the vehicle. Prior research into required modifications, part and shop availability should ensure that you are not left in this position.

The above is an overview of some of the important points if you are considering importing a vehicle. For a summary of the all of the steps involved in importing a vehicle from the United States and for related links and contact information please visit: www.riv.ca