Has anyone ever traded a car in - in the US ?

No, you pay taxes on full vehicle purchase price, not the difference

 

This is actually a very interesting question. Normally a trade in does not count towards the purchase price of the vehicle and at the border they check the dealer invoice to make sure if there is a trade in component to a transaction.

That said the fact that a car was already from the US and paid import taxes may be a strange loophole but my feeling is that this loophole would not be recognized and you would be stuck paying the full tax. One thing is for sure is that if anyone in border services tells you otherwise GET IT IN WRITING so that you will have a fighting chance at the border. Again I think it would be a long shot either way.

 

Find someone who has a dealer's license. They can purchase your new car for you, do the trade here in Canada so you save on the tax, then sell your old car to the dealer in the US.

 

Whether through you individually or paying the dealer back, the duty and gst at the border will be the same amount - ie the full value of the car without deduction for the trade in. The pst will change. If through you, in the full value. If through dealer, in the difference only. So there is a savings there of $60,000x8%= $4,800. The flip side is that the dealership/salesperson will want to make some money on this, even say $1,000 (plus hst), plus brokerage fee. Also dealer will have it shipped and you may just want to drive it or tow
it back.
If doing it yourself ensure you or US dealer faxes the form to US customs at least 48 hours in advance of your crossing into canada.

 

Good day Uras,

You must notify the border 72 hours in advance:

https://help.cbp.gov/app/answers/detail/a_id/307/~/requirements-for-exporting-a-vehicle-%28including%3A-snowmobile,-atv-and-motorcycle%29

https://www.riv.ca/USCustoms.aspx

Also, I believe that you must provide the export documents electronically via the US Border's Automated Export System (AES) and then be issued a ITN Number:

Cheers,

Sam

 

yes sam you are correct....forgetfulness on my part. I imported a 66 corvette earlier this year and the form is submitted a minimum of 72 hours beforehand, and you can only cross the border with the car at the point you submitted the paperwork to.

if crossing after hours, only certain locations are open 24/7 (other than US public holidays)....ie in Ontario I crossed at 10pm so sent paperwork to Detroit location and crossed there as Niagara falls and Kingston only open banking hours for vehicle importing.
overall, it is an easy process, especially with RIV if vehicles 15+ years old. in Ontario. if you contact your insurer, they will give you a temporary liability slip, and through the ministry of transportation licensing office there is a form to fill out and for about $10 you can get a form which sticks to your back window which allows for about a week of driving, enough time to get the vehicle to your residence.

 

Good day Uras,

Indeed, if the car is 15+ years old then the importation is very straightforward and in fact the vehicle is not even part of the RIV program... simply the provincial vehicle licensing authority.

As for a temporary transport permit... sadly, here in AB the permit is only valid for 3 days and so it can be a challenge to actually use it. Because of this I would simply purchase a temporary transport permit from the local DMV... I simply would provide my purchase doc and my CAN issued pink card (faxed) and for a few $ I was good to go.

Cheers,

Sam