Since getting back from Canada with my new car, I've had multiple people PM me to ask how the process of importing a car from Canada works. Rather than responding to each of their PMs, I figured I would create a How-To thread for anyone who is interested.
Part I - Car Selection
So, you want to buy a car from Canada. Good idea! The Canadian dollar is significantly weaker than the US dollar, and Canadian car prices are roughly the same as US car prices, meaning you will realize significant savings due to the currency arbitrage. The first step is to identify the correct car for importation.
The best place to search for cars in Canada is Autotrader.ca or Kijiji (a Canadian equivalent of Craigslist). Once you've found a car you like, here is a list of things to consider:
Is the car a US spec car?
-US spec cars can be identified by a cluster in MPH or MPH & Km/h, as well as an EPA sticker under the hood and an NHTSA/DOT sticker somewhere on the driver's side of the car. Importing a US spec car is the most important part of the process. If the car is US spec, you will owe $0 in import duty and $0 in gas guzzler taxes. Additionally, the car will require $0 in additional conversion work from a dealer or Registered Importer.
Is the car a Canadian spec car?
-You can still import a Canadian spec car on your own, but beware, the process will be much more difficult and more expensive than importing a US spec car. When a car is imported to the US by the manufacturer, they pay both the Gas Guzzler tax and import duty. However, a Canadian car has never entered the US, so you must pay an import duty on the car of approximately 2.5% (the actual math is a bit more complex, but 2.5% is close enough). You will also have to pay the Gas Guzzler tax ($2,100 on the RS4). On top of that, you will have to swap the cluster to a US spec (MPH) cluster, and obtain a letter of conformity from Audi USA stating that the car meets NHTSA and EPA standards. All of those steps add a significant amount of complexity and cost to the transaction, particularly if you are planning to fly up to Canada and drive the car back, as I did. I strongly recommend avoiding importing a Canadian spec car.
Is the car Euro/RoW spec?
-If the car is European or RoW spec, it is not importable unless it appears on the Non-Conforming Vehicle Eligible for Importation list published by the NHTSA. The B7 RS4 does not appear on this list, so this is a non-starter. If you attempt to import a Euro/RoW spec vehicle, it will not be legal and could be seized or crushed at any time.
Once you've identified that the car is indeed US or Canadian spec, you need to look at a few more details.
Is the car driven year-round?
-This is self explanatory, if driven year round, it will see winter conditions in Canada (save for a few places in British Columbia which rarely see snow).
If driven year-round, what province is the car located in?
-This is very important for avoiding rust or salt corrosion. Eastern provinces like Ottawa and Quebec tend to use a higher percentage of road salt in their winter road treatments, while Western provinces like Alberta and Saskatchewan use a higher percentage of sand/potash tailings. Eastern province cars are therefore more likely to have rust or corrosion issues. Be sure to have this looked at during the pre-purchase inspection before you purchase the car!
Part II - Payment
So, you've picked out your car and had a pre-purchase inspection performed, and everything has come out okay. It's time to consider payment. Your first instinct might be to run to your bank and either withdraw the money in cash or have a cashier's check in Canadian dollars drawn up. But before you do that, consider this: every major bank in the US will charge you an inflated exchange rate. For example if the current CAD/USD rate was 0.765, most banks would actually allow you to exchange currency at a rate of 0.79 or even 0.80. If you're buying a car that costs $30,000 CAD, that means you'd lose over $1,000 on the currency exchange alone!
To avoid this, you should use a money transfer service that uses Forex markets to exchange money. The service I used was Midpoint.com. They offer wire transfers from the US to Canada for a flat 0.5% fee - much better than any bank can do. On a $30,000 CAD transaction, their fee is $115, nearly 10x less than using a bank. The entire wire process took about 4-5 business days (I sent the wire on a Wednesday morning and the payment arrived on the following Monday evening).
Part III - Bringing the Car Home
You've got your passport, your plane tickets, and your hotels for the ride back booked. All you need now is a few forms for crossing the border. Some Canadian provinces offer temporary transit permits and/or temporary transit insurance. It's a good idea to spend the extra 30 minutes to pick up a transit permit if the province offers them, just in case anything goes wrong. Additionally, if your state issues temporary transit plates, you should try to get one to place on the car for the journey home. My state (GA) does not offer temporary plates and I didn't have any issues driving home without a plate, but better safe than sorry. You will also need to add the new vehicle to your US insurance policy, as they asked to see it at the border.
If the car is a US-spec car, you'll need to fill out CBP Form 7501. They have this form at the border and the border patrol staff will help you fill it out if you have any questions. An officer will verify that the NHTSA/DOT and EPA labels are affixed to the car, and your 7501 form will be stamped and handed back to you. All that's left is to bring the car to your home state and register the car.
Remember that Canada does not have vehicle titles, only registrations, so this may present problems in your state. In my state (GA), you are required to have a police officer fill out a form verifying that the car is not stolen and all NHTSA/DOT/EPA labels are properly affixed to the car. After you've completed this form, the state will issue you a title and registration.
Here's a quick list of import documents for a US spec car:
-Bill of Sale
-Registration from the previous owner signed over to you (Canada doesn't have titles, only registration)
-Proof of insurance from US insurer
-CBP 7501 form (they'll help you with it at the border crossing)
-Completed NHTSA HS-7 with box 2A checked (I ended up not needing this because the car was a US spec car, but good to have just in case)
-Completed EPA 3520 with box Code B checked (I ended up not needing this because the car was a US spec car, but good to have just in case)
That's all there is to it! You can use this guide to find a great car for a great price, it just takes a little leg work.
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Originally Posted by SliverJay
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