hey guys , I have a quick question…
What if my cuzn, who lives in states, out of no where bought some kind of vehicle… and then for no particular reason decides to come visit me in canada… and then for some real insane reason i like his car and decide to buy it off him … wht kind of duties and customs would i have to pay?
thanx
The same duties you would have to if you drove down there, bought a car, and drove it back up here. Same shit. You just basically had it shipped here in your case.
Check out Canada Customs site. States everything that you would owe. I think, after it is all said and done, take the price of the car in USD, add 30%, and you have your total canadian price. This of course is a rule of thumb, and will fluctuate with the market.
Someone could answer more in detail what the exact break down of those numbers are.
Ex. $10,000usd car x 30% = $13,000cdn.
I also think it is different for various cars and the years.
i know the break down but i wondering if that could have acted a loophole in the system ?
Doubtful. I’m sure one could get away with it, but “they” will find out eventually when you go to register the car.
The car would be registered in the states, it would be no different from buying a car there yourself.
you have abit of a lop-hole. welll i think you do. Sell it for 1 $ so ur duty +gst will be waived, still have 2 pay vin transferr to canada registrar and have it out of province inspected before it could be registered. And if they ask why sold only for 1$ say its a gift, or has blown motor etc. . .
^^^ smart, that would probably work. im sure they cant do anything about it anyways…
ummm if i have it as 1 dolla on bill of sale how would it affect (if any?) my comprehensive collision coverage … i hope insurance doesn’t say o u bought it for 1 dolla here u go i ahve some spare change hehehe… i know its noob question but still … thanx for all the input…
well, after your done buying it for $1.00, get it apraised and say you did some work to it, etc, and that is why the value has increased. Then provide the appraisal to the insurance company!
I am pretty sure Canada Customs will let you import a car with a declared value of $1. NOT
You could try but…
Well lets not say $1.00. But what you should do is keep it low enough that it could pass as a gift. I think the limit before the customs really start looking into things is somewhere around $1000.00.
So if Iw as you, I would do some importing reasearch first, then make a educated decision.
Just my $0.02 though.
They are trying to cut down on people under valueing stuff at the border. That is part of the reason you have to have your papers in 72hrs before the car. They run the vin, do a background check on the vehicle and look closely at the price and if it is close to where they think it should be. There was some guys at the border when I brought my S14 back, they had tried to screw the border guards on declaring stuff at certain values. It was not a good day for those guys, they seriously looked like they were about to cry.
^ :werd:
Your plan on trying to undervalue the car isn’t worth the risk.
30% is waaaaay too high
Here are the actual calculations but remember there is a cost to getting to the car and getting it back over and above import fees.
EXAMPLE…
Here is the basic math using $10,000 as an example
Purchase price of car $10,000 CDN
Duty --> $10,000 x 6.1% = $610.00
GST --> $10,610 (purchase price and duty) x 6% = 636.60
Sub total --> $10,610 + 636 = $11,246
Excise tax for the airconditioner = $100
Total $11,346
So on a $10,000 car you pay a wopping $1,136 bucks for the privilege of a) buying the car cheaper than you could here b) getting one from the south (no snow).
…or, try to screw them over at Customs, have the car seized and give up your $10,000 car…then I can buy it at auction later on for $5,000.
If you are going cheaper, the total import fees on a $5k - $7k car is not much more than the difference between eating at restaurants on the trip back versus eating out of a cooler.
No matter how you look at it, it is a damn loop hole.
Your car can be worth whatever you think it is. I mean for fuck sakes, the market for cars VARY from place to place. I mean people are buying fucking 240sx’s (1991) for like $5000.00 + when you can get them for at least half of that or less in other places. Who are the customs people to say how much something is worth? For all they know the engine could be SHOT, the elecrtical is fuckered or the car is rendered useless and for parts. Make up a damn excuse of why your car is worth jack shit, then “fix it” and get it sppraised and insure the thing.
I am damn sure as long as it isn’t something retarded like $5.00 for a car, and something more realistic like $1300 - $3000.00 you will be fine importing the car.
Good luck, talk to a damn broker and they will tell you more, but ultimately the best thing you could do it the simplest thing in the world. USE COMMON SENCE! It isn’t hard to come by, and then, you will be ok with your importing.
:partyman:
Declaring a different purchase price than what you actually paid and getting away with it does not constitute a loophole.
A loophole is “a small mistake or omission in a rule or law that allows it to be circumvented”.
In this case, a loophole would be something like the law doesn’t prohibit vehicles being imported as gifts with a declared value of a $1.
It is not a loophole to say to customs you paid $5,000 for the car when you actually paid $10,000. That is fraud not a loophole.
:yernuts:
So you are now telling me that I couldn’t purchase a vehicle for $5000.00 and lets say sell it to a friend for $5.00, and then buy it back from him for however much I would like the car to be worth?
That to me, constitutes as a loop hole.
I beleive you are just too stubborn to admit that there are ways around the ‘proper’ way of doing things.
Thanks for being mature about the subject and respecting people opinions! :axe:
Also, lets say I sold my car worth $10, 000 to you for something cheap like $6000 because I wanted it gone asap. So this is a great deal to the buyer. You as the buyer and importing this vehicle, would you say, the car is really worth $10, 000 so lets declare that amount, or would you say, it is only worth $6000.???
30% is waaaaay too high
Here are the actual calculations but remember there is a cost to getting to the car and getting it back over and above import fees.
EXAMPLE…
Here is the basic math using $10,000 as an example
Purchase price of car $10,000 CDN
Duty --> $10,000 x 6.1% = $610.00
GST --> $10,610 (purchase price and duty) x 6% = 636.60
Sub total --> $10,610 + 636 = $11,246
Excise tax for the airconditioner = $100
Total $11,346
So on a $10,000 car you pay a wopping $1,136 bucks for the privilege of a) buying the car cheaper than you could here b) getting one from the south (no snow).
…or, try to screw them over at Customs, have the car seized and give up your $10,000 car…then I can buy it at auction later on for $5,000.
If you are going cheaper, the total import fees on a $5k - $7k car is not much more than the difference between eating at restaurants on the trip back versus eating out of a cooler.[/quote]
Dave dave dave, read my post closer… that included conversion from USD to CDN.
It isn’t some arbitrary number you tell customs. You have to produce the bill of sale. If you actually pay 10k but have the vendor agree to put 6k on the bill of sale then that is what you provide them and :thumb congrats. Then cross your fingers they don’t question it. It is then up to them to decide if they want to be dicks or not and belive you or run you through their hoops.
Don’t get me wrong if you can get a 10k car into the country with a bill of sale that says 6k then all the power to you. I am not telling you what you can and can’t do. I am only telling you what the law says. I am saying that from someone who has imported three cars myself without the assistance of a broker.
If you want to try to do up a different bill of sale go for it just be realistic and compare the risk to what you would actually have to pay if you did it legally.
If customs determines that you have a bogus bill of sale (no clue how they would do that) and they catch you just be aware they aren’t likely to think it is a loophole and give you a slap on the wrist and let you on your merry way with your new car.
I am not saying this to be a jerk. I am answering the question that was asked.
Dude, it isn’t stubborn to point out to a guy that your version of a loophole is actually illegal. Getting around the “proper” way in this case could lose the guy his car and who knows what else could happen to him.
I guess my maturity got lost in my attempt to give the guy the actual facts about importing.
I apologise, I didn’t have my common sence engaged