Buying a car in the US.

[jajo500]

Hi,

I have been a long time reader of the forum and the blog, now that I am trying to start my own business I am making my first post.

I am a Canadian Citizen and I am trying to purchase a car in the United States, specifically New York. However my residency is in Canada. The dealers have informed me that they can only sell me a car if I have a US address, I can get a mailing address however I do not know if this is enough. Do i need some proof that I live at that address or not?

Also is it possible to receive the certificate of title without registering the car in New York as I will be exporting it to Europe a few days after I purchase it.

Thank You for Your responses.

[jajo500]

Thank You any information on the subject would be very helpful. What I am most interested in knowing is if I buy a new vehicle at a dealer do I have to register it or can ownership just be signed over to me using certificate of title. I have never purchased a new vehicle before so I don't know.

[muqtada123]

but i wondering that why dont you try your own dealers in canada?

[myfayt]

You can get a 3 day trip permit for $5. It will give you 3 days to go from Point A (New York) to Point B (Canada) without tags.

[muqtada123]

I did not get your point of sales?

[markt14]

The reason why we cannot purchase a car at canadian dealership is because a lexus rx 350 retails for 64 000 here, while in the united states it retailes for 44 000 dollars... this means that even with the dollar worth only .91 cents, it still makes more sense to purchase the vehicle in the united states.

[Mega B]

@markt14 as i dont live over the pond can you just clarify the bit about (lexus rx 350 retails for 64 000 here) is that US$ OR C$ i understand the price in the US as $44k but was not sure about the 1st price.

[rogercbryan]

It is a pain in the ass to import from the US to Canada because your emission laws are significantly different then ours. I would wager that on a car as new as the one you are talking about you would not have significant problems. There are brokers out there who will do the transport and the customs paperwork for you (for a fee). You may also void the manufacturers warranty when you cross the border. If you are trying to play of the weak dollar you may have an advantage. Other then that you will save a lot of time and head aches buy just buying local.

[markt14]

@markt14 as i dont live over the pond can you just clarify the bit about (lexus rx 350 retails for 64 000 here) is that US$ OR C$ i understand the price in the US as $44k but was not sure about the 1st price.

To clarify, a lexus rx 350 w/luxury package in canada retails for 64 000 dollars in the united states an rx350 w/lux package retails for 44 000, also we are .looking to export from a us port to europe, not exporting the cars back into canada

[HugoBoss]

If you are NOT financing this car and paying cash, you would just have to contact customs in USA and Europe, they should be able to give all the info in detail. Are you exporting this car as an investment?, how much is this car worth in Europe and what are the taxes you have to pay to export the car. Thank you.

[Future of Edu]

Taxes are going to kill you.

Cost to buy,
Transportation insurance cost
Transportation cost
Pick up cost
TAXES....

Its going to come out to be abou tthe same price someone in the UK or anywhere in europe could by the car for. Have a friend that tried this. Even use a family members contacts in shipping, they only saved about 2k and it took a month and a ton of headache. Just not worth it.

Enjoy Life,
nick

[HugoBoss]

Taxes are going to kill you.

Cost to buy,
Transportation insurance cost
Transportation cost
Pick up cost
TAXES....

I dont know the laws in Europe, but many countries will allow you to import one car TAX FREE, you just have to provide paperwork that you are visiting that country and the car will be your personal transportation while at that country, my parents are from Bolivia, I was born in the U.S, im planning to this as in investment.

[Future of Edu]

What you are referring to is not for residence of that country. I don't know of any country within the EU that will allow a citizen to import a vehicle and not pay taxes on said vehicle. If it is for an investment, he would be required to pay taxes on the vehicle in the U.S. which would be at buyers expense obviously. The buyer would then be responsible for taxes in their own country.

Now push all of that to the side. The buyer must have access to a business that can be used as a destination. A majority of international shippers will not transport a car oversees for private parties anymore. Not without a sizable, upfront fee. Then you have a required insurance policy purchase also required by the shipper. This is his policy, not state farm or geico.

Now, you can also read U.S. tax laws and you will find that is technically ILLEGAL to purchase a vehicle for another person. So to rid himself of any future problems, the buyer (investor) has to purchase the vehicle himself and have all of the contracts between him and the buyer ready to go before the purchase even takes place.

Because he's a resident of another country, I have no earthly idea how this could affect his own personal taxes or their laws regarding such a transaction.

So to get back on point, one tax free vehicle for visiting purposes is fine. You should also know that if caught creating an investment transaction with your personal vehicle, not only do you owe taxes on the sale, you will owe taxes from the original shipment and you will be fined what I can assure you will be a ridiculous amount. So much so that there would be no point in the transaction. While you may be able to escape in form of punishment or tax or fine back in the U.S. your parents will not be able to.

If you would like to clarify or get better info on any of what I'm saying, speak to a U.S. auto dealer, call U.S. customs as well as the company shipping to, call C.H. Robinson (2nd largest 3rd party shipper in the world) depending on the office you call you should get some help from them.

The deal is tough and usually is not a way to "invest". You can earn a small living as a broker if you have contacts over seas and could do many deals every year. However, those buyers don't normally bother with a U.S. car unless they find one they want and they already have a broker if they can afford to get it.

Best of luck all the same,

Enjoy Life,
nick

[HugoBoss]

A majority of international shippers will not transport a car oversees for private parties anymore. Not without a sizable, upfront fee. Then you have a required insurance policy purchase also required by the shipper. This is his policy, not state farm or geico.



While you may be able to escape in form of punishment or tax or fine back in the U.S. your parents will not be able to.



The deal is tough and usually is not a way to "invest". You can earn a small living as a broker if you have contacts over seas and could do many deals every year. However, those buyers don't normally bother with a U.S. car unless they find one they want and they already have a broker if they can afford to get it.

Best of luck all the same,

Enjoy Life,
nick

Nick are you speaking from experience, I actually know many people that
buy cars here in the U.S and sell them in South America, making a good chunk of $,see buyers there dont care about mileage, aslong as the frame of the car/suv/truck is in good shape, as car work is super inexpensive there. Transporters from any port in California will charge less than $2k per container to send to South America (if you have room in that container, you could plenty of more goods), insurance is optional and not too much.

LOl, why would you say, my parents would be in trouble, my friends,family or anyone i know in South America are not tied in any shape or form to my business dealing, all my business is done with cash. NOw , you can get away with selling , yes selling a car over seas tax free, but it can only be one car, if you want to sell more than one , you have to pay taxes on them and it can get pricy. Peace.

[Future of Edu]

I am speaking from experience. And when I mentioned your parents I was referring to you saying you "planned" on investing this way because your parents get one tax free vehicle. Well ONE tax free vehicle is not the case. It is tax free if it for personal use and you visit the country off and on. If this is not the case in Bolivia, then please show me where in their customs site I can find this. Or what law will show this. If it is as the rest of the free world, then even if you sell the "tax free" car, if you get caught then you are violating tax laws. You would then occur everything i mentioned above.

We are on two different playing fields my friend. I am referring to NEW cars, as we have all been talking about this entire time. NEW cars is the point of the thread... You seem to be referring to whatever second hand car you can buy. In which case, AGAIN, shipping OVERSEAS would be pointless as everything being discussed in my post was OVERSEAS shipment. A shipment from north america to south america is much different than ANY shipment from the Americas to the EU.

I would suggest reading a little more carefully before you jump into a conversation that isn't related to your future investment in anyway what so ever.

Best of luck to you though with your future investments. I would take in a little more knowledge before you start.

Enjoy Life,
Nick