Question:
Hello ,I need to now a few things and would be very greatful for your help .If I was to purchase a car from the usa from ontario what are the extra expenses I have to pay to get it here eg taxes duties etc.Aswell Is it possible to get a loan for a car that isfrom the usa???
Answer:
It depends on the car as to what the expense would be. A friend of mine picked up a car from New Jersey last year and I think he was out of pocket around $2,000 in air fair, gas, and fees. He claims he saved a few thousand dollars on his Volvo. Our office admin also picked up a Honda from the US last year and she’s very happy with the money that she saved.
If the car is covered under NAFTA then you’ll only pay GST and I think $200 to have it registered with the Registrar of Imported Vehicles plus an excise tax if it has air conditioning of around $100.00.
If the car isn’t covered under NAFTA ( say a 2008 Audi R8 ) then you’ll pay duty of around 6.5% on top of the price plus GST.
I’m not sure if you’ll have to pay PST in Ontario. In Manitoba we have to pay 7% PST on all vehicles (private sale or not) based on the book value of the car when we insure them.
There’s more information on importing a car into Canada at http://lemonfree.wordpress.com/2007/11/28/importing-a-us-car-into-canada
Getting a loan on a vehicle outside of Canada depends on your credit and your bank. You’ll have to ask them. As long as your credit is good I can’t see them not giving you a personal loan.
I don’t recommend buying or giving a deposit on a vehicle that you haven’t seen. There are a lot of scam artists out there and there will always be another deal to be found if you let one slip past you.
One thing you can do if you’re really set on having a particular vehicle is look in the yellow pages of the city that the vehicle is in and hire an auto appraiser to go and take a look at it. At least you’ll save yourself the cost of flying down to look at a vehicle that may not be worth it.
Hope this helps.
Demetri Karavas
Lemonfree.com
