How much does it cost to import a car from US to Canada?

Importing a car from the US to Canada offers plenty of advantages, such as access to a larger vehicle selection, potential cost savings, and availability of specialized models. However, the financial and procedural aspects of this process can be complex if you don’t know what to expect. To help you make an informed decision, we’ve broken down the essential costs of importing a vehicle into Canada and the steps involved.

1. Purchase Price of the Vehicle

The first and most obvious cost is the purchase price of the vehicle in the US. This largely depends on your choice of car, including its make, model, age, and condition. Keep in mind that the price paid in USD must ultimately be converted into CAD, and exchange rate fluctuations can impact the total expense.

2. US Sales Tax

While US-based car dealerships typically include local sales tax in their pricing, buying from a private seller may exclude it. Research the regulations in the state of purchase to ensure clarity on taxation rules.

3. Transportation Fees

Once you’ve purchased the vehicle, you’ll need to account for logistics costs to get it across the border. This may include:

• Shipping Costs (if you opt for professional vehicle transportation services).
• Fuel & Travel Costs (for self-driven deliveries).
• Towing Fees, if required.

Shipping generally ranges from $1,000 to $2,500, depending on the distance and shipping company.

4. Registrar of Imported Vehicles (RIV) Fee

Canada mandates the Registrar of Imported Vehicles (RIV) program to ensure all imported vehicles meet Canadian standards. Upon entry, you’ll need to pay:

• RIV Fee: CAD $325 + applicable taxes for most provinces; CAD $390 in Quebec.

You may also need to fulfill additional inspections or modifications to make the vehicle admissible.

5. Import Duty

Duty is another cost to consider when importing a car:

• Vehicles manufactured in the US, Mexico, or Canada (under NAFTA/USMCA guidelines) are duty-free.
• Non-North American vehicles are subject to 6.1% import duty based on their purchase price.

6. Canadian Sales Tax

Once the car crosses the Canadian border, you’ll need to pay GST/HST and provincial taxes on the vehicle’s declared value (typically the purchase price adjusted by exchange rates). Tax rates vary by province:

• Alberta, for example, charges 5% GST.
• Provinces like Ontario and British Columbia combine their GST with provincial sales tax (HST/PST).

7. Inspection and Modifications

Imported cars must meet Canadian safety and environmental standards. Some vehicles may require modifications to align with Canada’s laws. Common adjustments include:

• Daytime running lights installation
• Compliance with bumper regulations
• Child seat anchor system updates

The cost of modifications can range anywhere between CAD $200 and $2,000 or more.

8. Customs Fees

There’s also a flat excise tax on certain items:

• If the vehicle has air conditioning, there’s an additional CAD $100 excise tax.
• Depending on the car’s fuel type or size, additional charges may be applied.

9. Customs Brokerage Fees

Navigating the customs process can feel overwhelming thanks to paperwork and multiple fee categories. Many individuals find it beneficial to hire a customs broker who specializes in vehicle imports. Customs brokers ensure compliance with Canadian regulations, streamline the process, and help you avoid costly mistakes. Typically, their services range from CAD $200 to $500, depending on the complexity.

10. Insurance Coverage

Before you drive your newly imported vehicle anywhere in Canada, insurance coverage is mandatory. Check in advance with your provider to ensure they cover imported cars. Rates can vary significantly based on the car’s make, model, and year.

11. Registration Fee

Finally, you must register your vehicle in Canada. Provincial registration costs vary but generally range between CAD $50 to $250. Additionally, be prepared to pay for a Canadian license plate.

Is Importing a Car From the US to Canada Worth It?

Importing a car from the US to Canada offers certain cost advantages, especially for rare vehicles or when benefiting from USD-to-CAD favorability. However, the combined costs of fees, taxes, and transportation can reduce the financial savings. The key to success lies in thorough research and effective planning.

Take the Stress Out of the Process

Navigating the import regulations and associated fees can feel like a maze. Working with an experienced customs broker can make the process faster, hassle-free, and more cost-effective.

Looking for help with your vehicle import? Talk to one of our trusted customs brokers today and drive with confidence. 

Contact LCS customs brokers Now

Sources: 

1. Registrar of Imported Vehicles (RIV): www.riv.ca 
2. Canada Border Services Agency (CBSA): www.cbsa-asfc.gc.ca 
3. Government of Canada Vehicle Import Guidelines