7 Reasons to Import a Car from Canada in 2021
If you are looking for a new car, you might want to consider importing one from Canada. There are many benefits to buying a car from our northern neighbor, especially in 2021. Here are some of the reasons why you should import a car from Canada this year.
1. You can save money
The exchange rate between the Canadian dollar and the US dollar is favorable for Americans right now. You can get more value for your money by buying a car in Canada and bringing it across the border. Depending on the make, model, and condition of the car, you could save thousands of dollars compared to buying it in the US.
2. You can access more options
Canada has a larger and more diverse car market than the US. You can find more brands, models, and features that are not available or hard to find in the US. For example, you can import a car with a manual transmission, a diesel engine, or a right-hand drive. You can also find rare or vintage cars that are not sold in the US.
3. You can enjoy lower taxes and fees
Depending on your state, you might pay less taxes and fees when you import a car from Canada than when you buy one locally. Some states do not charge sales tax on imported cars, while others offer exemptions or reductions. You might also save on registration, title, and license fees.
4. You can benefit from higher safety and environmental standards
Canada has stricter regulations on car safety and emissions than the US. This means that Canadian cars are generally safer and cleaner than American cars. You can enjoy better fuel efficiency, lower maintenance costs, and fewer emissions when you import a car from Canada.
5. You can avoid dealer markups and scams
Buying a car from a dealer can be a hassle and a risk. You might encounter hidden fees, inflated prices, or dishonest practices. You might also end up with a lemon or a salvage title. When you import a car from Canada, you can avoid these problems by dealing directly with the seller or using a reputable broker.
6. You can have an adventure
Importing a car from Canada can be a fun and exciting experience. You can explore different cities and regions, meet new people, and learn about different cultures. You can also enjoy the scenic drive back to the US with your new car.
7. You can be proud of your purchase
Importing a car from Canada is not for everyone. It takes some research, planning, and paperwork to make it happen. But if you do it right, you can end up with a unique and valuable car that you can be proud of. You can also brag to your friends and family about your smart and savvy decision.
How to Import a Car from Canada
If you are convinced that importing a car from Canada is the right choice for you, here are some steps to follow:
Find the car you want
You can use online platforms like AutoTrader.ca or Kijiji.ca to browse thousands of listings from private sellers and dealers across Canada. You can also contact brokers or agents who specialize in importing cars to the US.
Check the eligibility of the car
Not all cars can be imported from Canada to the US. The car must meet certain safety and environmental standards set by the National Highway Traffic Safety Administration (NHTSA) and the Environmental Protection Agency (EPA). You can check if the car is eligible by using the NHTSA’s Vehicle Importation Regulations website or by contacting the manufacturer.
Arrange the payment and transportation of the car
Once you have found the car you want and verified its eligibility, you need to arrange the payment and transportation of the car to the US border. You can pay by cash, wire transfer, or escrow service. You can transport the car by driving it yourself, hiring a driver, or using a shipping company.
Prepare the required documents
Before you cross the border, you need to prepare some documents to prove that you own the car and that it meets the US standards. These documents include:
The original Canadian title or registration
The bill of sale or invoice
The recall clearance letter from the manufacturer
The EPA Form 3520-1
The DOT Form HS-7
The proof of insurance
Declare the car at the border
When you arrive at the border, you need to declare the car to both Canadian and US customs officials. You need to present your documents and pay any applicable taxes and fees. You might also need to undergo an inspection or testing of the car.
Register and title the car in your state
After you clear the border, you need to register and title the car in your state of residence. You need to visit your local DMV office and submit your documents along with any additional forms required by your state. You might also need to pay sales tax, registration fee, title fee, and license fee.
Importing a car from Canada can be a rewarding and worthwhile option for car buyers in the US. You can save money, access more options, enjoy lower taxes and fees, benefit from higher standards, avoid dealer markups and scams, have an adventure, and be proud of your purchase. If you follow the steps above, you can import a car from Canada with ease and confidence.
Auto Import Canada: A Growing Industry
Canada is one of the largest importers of motor vehicles and related parts and components in the world. According to Statista, the Canadian automotive industry imported motor vehicles and related parts and components to the value of around 53 billion U.S. dollars in 2020. Imports are estimated to increase to almost 70 billion U.S. dollars in 2021.
What Drives the Demand for Auto Imports in Canada?
There are several factors that contribute to the high demand for auto imports in Canada. Some of them are:
- The diversity of consumer preferences and needs, which require a wide range of vehicle models and options to choose from.
- The geographical size and climate of Canada, which create different driving conditions and challenges for drivers.
- The trade agreements and policies that facilitate the cross-border movement of goods and services, such as the Canada-United States-Mexico Agreement (CUSMA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
- The environmental and safety standards that regulate the quality and performance of vehicles, which encourage the adoption of newer and cleaner technologies.
Which Countries Are the Main Sources of Auto Imports for Canada?
According to the Observatory of Economic Complexity (OEC), the top sources of auto imports for Canada in May 2023 were:
- The United States, with a share of 50.1% of the total value of auto imports.
- Mexico, with a share of 14.4%.
- Japan, with a share of 11.8%.
- Germany, with a share of 7.9%.
- South Korea, with a share of 4.5%.
These five countries accounted for 88.7% of the total value of auto imports for Canada in May 2023.
How Does Auto Import Canada Compare to Other Countries?
According to World’s Top Exports, Canada ranked as the fifth-largest importer of cars in the world in 2022, behind China, the United States, Germany, and the United Kingdom. Canada imported cars worth 29.9 billion U.S. dollars in 2022, which represented a 14.8% increase from 2021. Among the top importers of cars, Canada had the second-highest growth rate, after the United Kingdom.
References:
https://letenda.com/en/electrip/
https://www.cbc.ca/news/politics/net-zero-emissions-1.5807877
https://www.bbc.com/news/world-us-canada-55006702
https://www.statista.com/statistics/1229138/canadian-motor-vehicle-imports/
https://oec.world/en/profile/country/can/
https://www.autotrader.ca/newsfeatures/20200121/how-to-import-a-car-from-canada-to-the-us/
https://www.caranddriver.com/research/a32878488/how-to-import-a-car-from-canada/
https://www.cbp.gov/trade/basic-import-export/importing-car
https://www.nhtsa.gov/sites/nhtsa.dot.gov/files/documents/vig_2016.pdf
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