DOING M O R E WITH YOUR MONEY AND RESOURCES

Monday, November 26, 2007

Canadians buying cars in the U.S. need to be careful

A letter to the Kingston Whig-Standard on November 26, 2007 from Bill Fellows, Chairman of the Kingston New Car Dealers Association contained a caution for Canadians thinking about buying cars in the U.S.

Here is a summary of his advice:

1. Some vehicles are not exempt from the North American Free Trade Agreement and may incur a 6.1 per cent surcharge upon entry to Canada.
2. The certificate of title for the car you purchase in the U.S. is subject to a 72-hour title search for liens registered against the incoming car.
3. Costs for importing cars from the U.S. include Transport Canada’s vehicle import fee and possible brokerage fees.
4. Some U.S. vehicles may not comply with Canadian emissions standards or feature daytime running lights—mandatory in Canada.
5. The warranty on the U.S. vehicle may not apply in Canada.
6. A zero per cent financing rate may not be available in the U.S., while it is common in Canada.
7. Local Canadian dealers who contribute to their communities expect support from the residents in those communities.

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