Another Car Topic

[NBtoPitt 2]

Alright, so I think I need a little hand-holding for this one. I desperately needed a car for work, and in spite of qualifying for a MORTGAGE here in the US, I couldn't get a car loan ANYWHERE due to my lack of credit (the mortgage used my Canadian credit, but I can't do that for a car loan). So my way around this is that I'm buying a car in Canada and bringing it down. I'm aware that I may have to pay fees, but I've accepted that. So, my questions:

Should I put Canadian insurance on it and then switch to US insurance once I get back to PA?

Is it possible to just get US insurance from the start?

What exactly is the process of crossing the border with a car? I can't find a straightforward explanation that tells it from the beginning.

What papers do I need to cross the border with the car?

What do I need to do to get the car registered once I'm back in PA?

Anything else I need to know?

I've never owned a car, so I'm completely lost here. I desperately need it though. Thanks in advance for the help!

[Hugglebuggles 60]

As far as the insurance goes- Are going to register the car in Canada first, and then transfer the registration once you get to the US? Or are you going to buy the car in Canada, and then take it to the US immediately? How long will the car be kept in Canada?

If you're just going to buy it in Canada and bring it to the US fairly soon without ever registering it in Canada, you should have no problem getting PA insurance on the vehicle immediately. If you are going to register the vehicle in Canada first, you will need to get insurance in your province first, otherwise they will not allow you to register the vehicle. I'm not sure you can import a vehicle without a registration? No idea, I never imported my car.

The fact you qualified for a mortgage but not an auto loan is really interesting! We bought our house in February of 2010 and I couldn't be on the loan due to my lack of credit. That July I purchased a brand new car and qualified for an auto loan no problem. So weird!

[Darnell 8,478]

would it make any other sense to buy a USED Volvo 740 wagon, pay CASH? Look for one with the service record book in the dashboard, study copiously. Usually in the 1000 to 1500 range - doesn't have to be a pretty car, and you can get a lot in a Volvo Wagon.

(just a thought)

[NBtoPitt 2]

I think I want to register it in Canada first (makes the most sense). What papers do I need to do that? I really am totally new to this! Never had my own car before!

[Moosker 7]

Just my two cents....I had a car that I used at school that was Canadian. (Oldie....'91 camry). We used it for a year then knew we were giving it to my little brother, so we never imported it. It was registered in Canada. I had no problem at all getting car insurance through Allstate, and then through Geico when we got married. The ONLY thing was, to get the car insurance in the U.S. you have to have a U.S. drivers license. hope that helps!

[NBtoPitt 2]

So... that means I can keep it registered in Canada but get US insurance on it? Is that an option?

[NBtoPitt 2]

Okay... sorry for the double post, but I THINK I've got this figured out now:

In Canada, I...

• Buy the car
  
• Obtain the title (with both mine and bank's names)
  
• Get it insured and registered
  

At the border, I...

• Give them the compliance letter
  
• Show them registration
  
• Receive a stamped letter of import from them
  

In Pennsylvania, I...

• Go to DOT
  
• Give them my old registration
  
• Give them the title
  
• Show proof of PA insurance
  
• Get new PA plates, registration, title
  
• Get car inspected
  

Phewf. Am I missing anything?

[SapphireDreams 71]

I found a few sites that talk about the duty rates and it sounds like you're best buying a US or Canadian made vehicle. Anything that has foreign made parts will require you to pay duty.

You may also want to look into the emissions standards required.

Have you tried just getting a car in your husband's name for now in the US? Might save you the headache and a lot of money. The US dollar is so weak right now and cars are a lot more expensive in Canada. My Dad is a car salesman and he even says himself, they can bargain lower in the US than in Canada.

Edited April 9, 2011 by SapphireDreams

[Krikit 1,164]

Nissan pulled my Canadian credit no problem. They just called Nissan Canada.

As an aside.... you really need to review the costs associated with buying in Canada. Vehicles are much more expensive there, and the US dollar is very low, making the cost even more expensive. Not to mention the import duty you'll have to pay. If you do go that route, though, GEICO was able to insure my Canadian-registered vehicle with a Canadian drivers license and plates. All I had to do was give them the updated info once it (and I) were registered in the US.

[Hugglebuggles 60]

Yeah, I'm an insurance agent and I can tell you that you can certainly get US insurance without a US license. Some companies or agencies may not allow this because of preference, but I know many more will. For example, I had no problem getting insurance with State Farm with my Canadian license when I moved over. As Krikit said, Geico allows this. I know on the top of my head Progressive and Safeco (Liberty Mutual Group) will allow this as well.

Generally, Canadian licenses and Mexican licenses are not a problem, they are treated them same as out of state licenses. There registration in Canada is not a problem either as long as it is titled to you, and you have the intention of transferring the title in state.

I don't know how it works in Canada, but to register a car here in the State of Colorado, you need to present evidence of active Colorado state insurance. Out of state insurance is not accepted. So based on that, you may need to get Canadian insurance to register the car in Canada, and then have it canceled later and obtain US insurance. Make sure you pick a company in Canada that does not charge mid-term cancellation fees, because that could be expensive.

This seems like such a difficult plan Pixel. Are you looking at buying a new car? Registration costs are not cheap, especially when you are going to register it in Canada, and then register it in the US. I bought a new car this summer and it cost $500 to register it... I was pretty surprised by that. Then you have all the taxes, fees, etc. Not to mention the paperwork and time.

Have you tried companies like Bar None? Here we have a website called "carcreditgiant.com" and they'll give car loans to virtually anyone with a job. There are definitely places out there desperate to sell cars.

Edited April 9, 2011 by Hugglebuggles

[NBtoPitt 2]

It really is a difficult plan, and if I didn't need a car so badly I wouldn't even consider it. I'm going to try a few more places, but I really have tried almost all venues out there. It's so frustrating to be able to get any car I want in Canada but nothing at all here. Especially when I can get a mortgage! Thanks for the info so far, I'll keep you all posted!

[Krikit 1,164]

I'm going to try a few more places, but I really have tried almost all venues out there.

Ask them to pull your Canadian credit. They can do it.... they either don't realize it or they can't be bothered. Make it easy for them if it's a problem, and google how to do it.

On another note.... if you require a loan to purchase the vehicle in Canada, you're going to have to make sure the lien-holder will allow you to remove the vehicle from the country. Some financial institutions won't allow that.