First Car in Canada

My first car in Canada was a 2012 Honda Accord SE which I imported from U.S.A. Now this is going to be an interesting topic to cover. Most people buy their first car in Canada to make their lives easy. Less hassle and worry free, right. I went the longer route and bought my first car in U.S.A. and imported it into Canada. It was an experience and it did save me CAD 3,000 in the process.

We will come back to why I bought from U.S.A. and I went the longer route to buy my first car. First let me give you my perception on…

Why do you need a car?

I have met so many new comers and citizens over the span of time who are divided on this opinion. Some people think that when you have public transit available you don’t really need a car. Use public transit and save money. Save the planet and reduce emissions. Go for carpool and reduce your own hassle of keeping a car.

Well, car is a luxury even if you own a Chevy Impala from the 1980s. It is termed as such in Canada Tax Laws as well. Costs spent on keeping a maintaining a vehicle are not reimbursed when doing your taxes.

Still, why do I prefer having a car?

Here are a few reasons that might compel my case:

1. It reduces travel time in comparison to public transit unless you are living downtown where public transit is ample.

2. Cost of commute is cheaper. Even if you add vehicle insurance, fuel costs and parking fees etc.

3. The best, you don’t have to think twice taking a family trip as you have the convenience to jump in to the car and go see Canada.

4. Winters are easy to tackle while commuting in your own car. Imagine tugging yourself in snow gear and snow boots to the bus stop. Then spending the next 5-10-15 minutes in cold temperatures for the bus to arrive while your teeth are chattering and you are shivering.

5. Can use your vehicle to earn money through Uber, Skip-the-Dishes, Door Dash, etc. if you are between jobs or if you want to earn a few extra bucks.

6. COVID-19 times, it is a blessing as you are safer and secure as you are less prone to catch the virus in your own car (it can be any viral disease though).

The list would keep on going, many more things too but these are a few important reasons.

Buying a Car:

When you are looking to buy a car in Canada, as everything else, this also requires research. You have to find yourself the right car so that you don’t fall in a spiral of bills and maintenance costs. Just letting you know now, labor costs for maintenance range from CAD 80 to CAD 120 per hour. It is really expensive to get your car repaired if you didn’t make the right decision the first time.

There are a few things you need to ask yourself before getting in to finding your dream car.

• How big is your family? Depending on the number of passengers you decide on the next question.
• What car are you looking to buy? Sedan, SUV, Truck or a Van.
• Is there a specific budget or you going to splurge on anything you see?
• Do you have a preference? Toyota, Honda, Infiniti, Dodge, Tesla etc.
• Are you looking for an economic consumption vehicle or a V12 would not be an issue either?
• Knowing re-sale value, maintenance costs, warranty, etc. is important to make a choice.

Where do you buy it from?

You now decide on where you will be buying the vehicle from. I have had the experience of buying through a Private Dealership as well as through a franchise dealership.

Franchise Dealership: Convenience is always buying through a franchise dealership as they are well equipped to provide you with the best deals there are. Prices are fair, financing through major banking institutions in Canada, used vehicles are certified meaning you can buy without batting an eye. You have limited warranty on all vehicles and/or you can buy extended warranty if available through them. At least you have peace of mind.

Private Dealership: some are great but majority of them are selling sub-standard vehicles and lying about their condition just to make a sale. If you are not an expert on cars, don’t take a chance. The moment you buy and step out of the dealership, anything happening to your vehicle pertaining to engine, gear, chassis etc. is not their problem.

“My elder brother was sold a “Lemon” by one such dealership, they wouldn’t entertain him the next day for a sensor issue that had popped up. Ended up paying CAD 8,000 (Vehicle Price) + CAD 5,000 (Maintenance and Parts), time spent on the back and forth was extra, and then sold it to an exporter at CAD 5,000 so he can part it out. All this in just 6 months!!”

Well you are smart, make the right choice and ensure you put some thought and research when buying cars. Here are a few sources that will help you find your baby:

1. Auto Trader
2. Kijiji Autos
3. Facebook Marketplace

My Car:

Going back to my story, I have had experience from U.A.E. in buying/selling cars from U.S.A. We had traded for a few years in U.S. Salvage title cars in U.A.E. When I arrived in Canada, my uncle was visiting from Chicago. While strolling outside, he asked if I will be buying a car too and I said yes. He mentioned that he had just acquired a 2012 Honda Accord SE, a Clean Title with a few thousand miles on it and was willing to sell it to me at the purchase price.

Immediately went on to Auto Trader, saw car prices in Canada for the exact same car, model and mileage and said YES. Well I had opened myself some work. Now I had to work out the logistics of getting the car in to Canada and had to research everything in regards to importing a car in to Canada. I took it up as a challenge and didn’t back down.

Importing Cars to Canada:

The challenge now was to find out everything there is to ensure the vehicle is imported in to Canada. I started my research and found out that it is a long process and requires some paperwork. Just to simplify for people wanting to go down this route, here are the steps:

In U.S.A.:

1. Getting the Vehicle Title/Ownership Transferred in your name – Done by the dealer in USA. Certificate of Title and Bill of Sale should be provided to you. These should be attested by the State where the vehicle is being purchased from.
2. Ensuring a temporary plate is issued by the dealer in Canada so that it can be driven if you wish to drive it down to Canada. You can drive in Canada on these plates for 15 Days.
3. Getting temporary vehicle insurance in place if you wish to drive it.
4. Checking for the Vehicle Recall if there are any active. You cannot import if any active recalls are pending in U.S.A.
5. Register with a broker for US Customs clearance for Automated Export Systems. The preferred ones mentioned in Canada are AutoExports.US. They provide you with Shipper’s Export Declaration.
6. At your preferred border, your vehicle will be inspected by U.S. Authorities prior to it being allowed to be legally exported in to Canada. Inspection of VIN Number is a crucial part in this process.
7. Documents will be inspected to ensure that the car is not stolen, has no liens and has no open recalls.

In Canada:

1. Register on RIV.ca so that you can receive your Vehicle Import Form – RIV.
2. Have a valid Canada Driver’s License and a valid US Visa if you wish to drive in an out of U.S.A.
3. In Canada, you have to pay the General Sales Tax (GST) which is at 5% of your Bill of Sale.
4. You then go on to complete the Safety Inspection of the Vehicle after ensuring it complies to Canada Standards, RIV Inspection is carried out by Canadian Tire and the provide you with the RIV Inspection sticker that is affixed to your vehicle.
5. You are now all set to take the Vehicle Insurance, RIV Inspection Report, and Safety Standards Report to the nearest Service Ontario location. They will charge you the provincial sales tax and then allocate you a number plate and provide you with your ownership.

The Problem:

I had hit a wall when I reached point number 2 (In Canada). I didn’t have a valid Canadian Driver’s License or a valid U.S. visa. My uncle said he will ship the vehicle to Buffalo, NY from Chicago, IL. I just had to pick it up from there. My brother-in-law helped here as he was coming to Canada to spend holidays with us. And he would gladly drive it in to Canada. Voila! My problem was solved.

My plan, I drive him to Fort Erie, Canada, which is near Buffalo. He takes a cab from Fort Erie, Canada to Buffalo, New York and pick up the car from the address my uncle gave me; (This was just crossing the border in to US and back) He then drives it in through Livingston as that was the port of entry I had given to my broker. Yes, it did work out without a hitch.

Finally:

My first car in Canada was an experience. I did go the long way when buying the car and guess what?? When I was selling that car, it sold for the same price it costed me the day I bought it; with taxes, licensing and shipping included. It was a great car and it stayed on for maybe a year and a half. I wanted a different car now. Sorry, eh!!

Life was beautiful, everything was perfect. I was supposed to be getting my Driver’s License in Canada on the day I was getting my car. This was me hitting a bull now, sorry, the bull had hit me. The G-Test was a failure. I will talk about it in the next blog. That is some story too.

Now don’t go on thinking that I was driving without a license, no I was not!! You can drive around in Canada as a visitor for 90 days using your valid International Driver’s License. As per the new laws in place, you need to ensure that you get your G1 License if you are landing permanently as an Immigrant in Canada. You are considered a resident in that province then.

Anyways, this has gone too long than I had anticipated. Hope you did like the content and had some fun along the way. If you did, do…

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