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Buying a Car from the USA to Canada

August 19, 2025
buying a car from the USA to Canada

For many Toronto residents, buying a car from the USA to Canada seems like a way to save money or access models unavailable locally. However, the process involves specific rules, paperwork, and costs. This guide explains how it works, the challenges involved, and what alternatives exist.

Can a Canadian Buy a Car in the USA?

Yes, a Canadian can buy a car in the USA. However, the vehicle must meet Canadian safety and environmental standards before it can be legally registered in Ontario. Buyers also need to prepare documents such as the title, bill of sale, and recall clearance letter. In addition, US Customs requires export paperwork 72 hours before the vehicle leaves the country.

Buying a Car From the USA to Canada

When Toronto drivers think about buying a car in the USA and bringing it to Canada, the steps include:

  1. Confirm the car is admissible under theRegistrar of Imported Vehicles (RIV)
  2. File export documents with US Customs.
  3. Pay GST/HST(13% in Ontario) and potential import duties at the Canadian border.

Complete an RIV inspection in Canada, often done at Canadian Tire.

Canadian Buying Car in the USA: Why Consider It?

Some Canadians explore this option because:

  • Certain trims or models aren’t sold in Canada.
  • US markets often have largerused car
  • Prices may appear lower at first glance.

But once exchange rates, duties, and transportation are factored in, the savings may not be as large as expected.

Buy a Car in the USA and Bring It to Canada: Pros and Cons

Pros: 

  • Access to rare vehicles
  • potentially lower upfront costs
  • wider selection.

Cons: 

  • Complicated paperwork
  • possible modifications for compliance
  • warranty issues
  • and unpredictable exchange rate fluctuations.

Pro-Tip:

For Toronto drivers, the real question is whether the extra effort outweighs the potential savings.

Buying a Vehicle from Canada: The Reverse Situation

While many Canadians look south, some Americans are buying Canadian cars. A strong US dollar sometimes makes Canadian vehicles attractive to American buyers. But just like Canadians face import hurdles, Americans must ensure compliance with US standards, pay state taxes, and handle export requirements.

Can I Buy a Car in the USA and Bring It to Canada?

Yes, you can. But consider:

  • Insurance– You may need temporary coverage before the vehicle is registered in Ontario.
  • Financing– US banks usually require a US credit history, so most Toronto buyers must arrange financing in Canada.
  • Timing– From purchase to final registration, the process can take several weeks.

FAQs: Cross-Border Car Buying for Toronto Residents

Is it cheaper to buy luxury cars in the US and import them to Toronto?

Not always. Import duties, luxury taxes, and warranty limitations often reduce or eliminate potential savings.

Can I lease a car in the USA as a Canadian living in Toronto?

Leasing is nearly impossible because US lease agreements typically require residency and credit history in the States.

What happens if the car doesn’t pass Canadian inspection?

You’ll need to make modifications, such as adding daytime running lights or adjusting the odometer to metric, before registration.

How do exchange rates affect the deal?

A weak Canadian dollar can erase potential savings, making US cars more expensive once converted to CAD.

Do US dealerships handle the export process for Canadians?

Some do, but many expect the buyer to manage the paperwork. Always confirm in advance before purchasing.

Conclusion

Buying a car from the USA to Canada can be done, but for Toronto drivers, it requires planning, extra costs, and patience. While it may be worthwhile for rare vehicles, many discover that local options provide similar value without the added complexity.

If you prefer a smoother path, CarRookie—a trusted car dealership in Toronto—connects customers with top-rated sales agents and helps buyers secure a vehicle even with poor credit, making the process far easier than navigating cross-border imports alone.

CarRookie
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