buying a car in the US with TN and then taking it to Canada

[doubledouble]

hi there, I work in the US under a TN visa and live in Canada. Given the huge differences in luxury car prices between Canada and US, I am contemplating on buying a car for my wife (she lives and works in Canada) in the US, and then driving it to Canada. Can someone tell me what type of issues should I look for as far as customs, insurance and DMV is concerned?

I should also say that I rent an apt in the US and plan on registering the vehicle, get insurance,etc in the US. I plan on leaving the Car in the Canada for the next 6 months or so until I finalize our big move to US.

Please advice.

 

[Bill_S]

If you will be moving to the US in six months, why not wait and buy the car then? If you buy now, you are setting yourself up for a lot of trouble. Canadian residents cannot drive a US-registered car in Canada. So while you are still in Canada you would have to formally import the car to Canada and get it registered and insured there. In six months, when you move to US, you would then have to import it back to US, re-register and re-insure. Sounds like more trouble than it's worth to me.

 

[doubledouble]

Canadian residents cannot drive a US-registered car in Canada. So while you are still in Canada you would have to formally import the car to Canada and get it registered and insured there.

If one is working in the US and has an address , does that not prove residency in the US for the Canadian authorites? Is there any law that says one cannot drive a US licenced vehicle in Canada for longer than a certain period of time? I know a plenty of Canadian citizens living in the US under TN visa that come to visit their families for weeks at a time- does this means what they are doing is illigal?

 

[Bill_S]

Canadian RESIDENTS cannot drive US-registered cars in Canada. A TN living in the US is a US resident. When I was on TN in the US, I drove back to Canada many times. This is perfectly legal. However, it would have been illegal for one of my Canadian friends to borrow my US-registered car.

Either you are a resident of Canada or US. If you are living in Canada and commuting to US to work on TN, then you are a Canadian resident and cannot drive a US-registered car in Canada. Renting an apartment won't make you a resident if you aren't living in it. You also likely will have trouble with insurance if you try something like that. You might get a policy, but the company won't want to pay a claim if they find out you really are living in another country.

You can try to get away with this if you want, but you risk problems. It would be much simpler to wait until you move to US.

 

[nelsona]

There is of course, there nothing wrong with going to US buying the car and then formally exporting it from US and importing it to canada (although Cdn customs and US border car dealers have been making harder in the last three months). this is perfectly legal. See RIV.ca

But as bill sez, why go thru the hassle; wait 6 months and buy it then. That way you won't have to re-import it into US.

 

[doubledouble]

Either you are a resident of Canada or US. If you are living in Canada and commuting to US to work on TN, then you are a Canadian resident and cannot drive a US-registered car in Canada.

Bill, thank you for the insight. I am curious, what defines a TN holder as a Resident of the US or Canada? In my case, I spend 5 days of the week in US and the weekends in Canada.

 

[john_canadian]

Bill, thank you for the insight. I am curious, what defines a TN holder as a Resident of the US or Canada? In my case, I spend 5 days of the week in US and the weekends in Canada.

If you spend more than 186 days in US, you are a US resident in terms of Tax.

 

[warlord]

The biggest things will be the duty fees you will have to pay. Plus you'll have to get the cars emmisions to Canadian specifics. Not sure if you have to get the odometer changed at all (heard that once, but can't verify that and seems kind of odd). So with the taxes and duty etc you pay, it will probably be cheaper to get the same car in Canada after all the importing fees etc are paid...

 

[Byteless]

The biggest things will be the duty fees you will have to pay. Plus you'll have to get the cars emmisions to Canadian specifics. Not sure if you have to get the odometer changed at all (heard that once, but can't verify that and seems kind of odd). So with the taxes and duty etc you pay, it will probably be cheaper to get the same car in Canada after all the importing fees etc are paid...

Looks to me the more concern is not buying the car and import in Canada.
Its more likely having US insurance for the car which will reside in Canada, as Canadian auto insurance is more killing then buying the car in Canada.

 

[nelsona]

If you spend more than 186 days in US, you are a US resident in terms of Tax.

Residency means various things for various agencies.

When we are talking cars, its what it says on your valid driver's license, back up with where you sleep most often.

So, a Cdn resident, buying a car in US and driving it back to canada to be duly registered, will not have to worry about US registration or insurance.