1. Attachments are working again! Check out this thread for more details and to report any other bugs.

Importing a new Prius into Canada

Discussion in 'Gen 2 Prius Main Forum' started by BlairMartin, Aug 31, 2006.

  1. BlairMartin

    BlairMartin New Member

    Joined:
    Aug 14, 2006
    19
    0
    0
    Why do it? There are two major reasons:
    1. Saves a lot of money
    2. Better choice of option packages on US models
    Saving money is the main objective. Over the past three years, the value of the Canadian dollar has risen relative to the US dollar. One Canadian dollar used to be worth about 64 cents US. Now it's up to 94 cents. However, the prices of many products sold in Canada haven't been adjusted to reflect the change — and that's certainly true of Toyota cars.

    For example, the base price of a 2006 Prius in US dollars is $21,725. The Canadian price for the same car (converted to US dollars) is about $29,090 — $7,365 more than in the US!

    Well, why don't the Canadians just visit the US and buy their Toyotas from a US dealer? Nice idea, but it can't be done because US Toyota dealers aren't allowed to sell new cars to Canadian residents.

    However... Toyota can't restrict the sale of pre-owned cars. It's quite OK for a US resident to sell a used Toyota to a Canadian. There are some regulatory requirements that have to be met in Canada, and it costs roughly $1000 to do it. Otherwise... I believe... it can readily be done.

    In my case, I really would prefer to have a new car, especially as the cost of a lightly used Prius isn't any less. So I'm planning for a US family member to purchase a new Prius, drive it for a few weeks, and then resell it to me.

    What difficulties might I encounter? I wish I was sure I knew all the answers! What I do know is that I won't be able to claim a green-car tax deduction in either country. (Neither will my relative because he'll only be the owner for a short while.) Also, I will have to pay purchase tax in both countries, as well as an import duty in Canada.

    On the other hand, the option package (#3) I want costs $1475 in the US. In Canada, that package isn't available, and to get the same items I would have to buy Toyota Canada's "Option B" at a cost of $3800.

    User Geewiz in this forum is importing an older Prius he already owns. Is any other Canadian considering it? Can anyone give me more insight into what I'm about to do?

    Blair
     
    #1 BlairMartin, Aug 31, 2006
  2. vkykam

    vkykam New Member

    Joined:
    Jul 15, 2006
    27
    0
    0
    www.riv.ca

    Most of the information you need is there. It's relatively straightforward, but is time consuming.

    I just brought over my 04 Prius 4 weeks ago from Ohio.

    <div class='quotetop'>QUOTE(Blair @ Aug 31 2006, 09:54 PM) [snapback]312509[/snapback]</div>
     
    #2 vkykam, Aug 31, 2006
  3. Sarge

    Sarge Senior Member

    Joined:
    Nov 28, 2005
    1,320
    774
    1
    Location:
    Milton, Ontario, Canada
    Vehicle:
    2023 Prius Prime
    Model:
    XSE Premium
    <div class='quotetop'>QUOTE(Blair @ Aug 31 2006, 09:54 PM) [snapback]312509[/snapback]</div>
    I have never thoroughly looked into this myself, but here's a start...

    http://www.riv.ca/

    You will need to pay a fee ($182?) to get into the Registrar of Imported Vehicles program. You will also need to pay the PST & GST (~$3000?) on the car, and possibly other fees as well (?). The Prius is not listed on the inadmissible list, so it should be possible to move forward.

    However, as you know there are modifications that need to be done, primarily the DRLs. I would suggest calling your local Toyota dealer to ask if these can be retrofitted, but I seem to recall hearing the Toyota will not do it, and that those who have attempted to undertake this task have discovered it is not easy. You may want to look into this aspect carefully.

    The second requirement in having a metric cluster is not an issue for the speedo since it can be flipped, but the odometer may be an issue, since the requirements indicate "Metric speedometer and odometer labels". Not sure if the odo can be flipped from miles to km on the service side... (?) Of course, everything will be displayed in MPG & Fahrenheit rather than L/100km & Celsius... don't know if you care or not.

    Then there is also the warranty issue - will Toyota still honour it? They should, but it might be a good idea to also get this in writing to protect yourself.

    After confirm the technical details with Toyota, I would strongly recommend contacting the RIV through the Contact Us link above and find out everything before committing to anything.

    Personally, I don't feel it is worth all the hassle, but if you choose to undertake this project, then all the power to you and good luck!

    Finally - tax credit. Not sure about the rules for the US tax credit when reselling shotly after, but in Ontario it is $2K rebate from the PST (you have to apply for it, takes about 10 weeks), and this applies to both new and used hybrid vehicles. Have you considered a used Prius?

    Kevin

    <div class='quotetop'>QUOTE(vkykam @ Aug 31 2006, 10:33 PM) [snapback]312530[/snapback]</div>
    Bah... ya beat me to it as I was writing up my post! :huh:

    I assume you needed to install DRLs?

    Kevin
     
    #3 Sarge, Aug 31, 2006
  4. Tideland Prius

    Tideland Prius Moderator of the North
    Staff Member

    Joined:
    Oct 2, 2004
    45,024
    16,242
    41
    Location:
    Canada
    Vehicle:
    Other Non-Hybrid
    Model:
    N/A
    It's actually $31,280 now... <_<
     
    #4 Tideland Prius, Sep 1, 2006
  5. BlairMartin

    BlairMartin New Member

    Joined:
    Aug 14, 2006
    19
    0
    0
    <div class='quotetop'>QUOTE(Tideland Prius @ Sep 1 2006, 02:54 AM) [snapback]312623[/snapback]</div>
    Yes, but that's in Canadian dollars. To make my explanation simpler, I converted the Canadian prices into US dollars. Sorry I didn't make that clear.

    Blair
     
    #5 BlairMartin, Sep 1, 2006
  6. BlairMartin

    BlairMartin New Member

    Joined:
    Aug 14, 2006
    19
    0
    0
    <div class='quotetop'>QUOTE(Sarge @ Aug 31 2006, 10:39 PM) [snapback]312532[/snapback]</div>
    Kevin, thanks for your thoroughly researched reply. In fact, I had uncovered most of your points before I placed my posting, but you raised one issue I had overlooked. Will Toyota Canada honour a US warranty? Yes, they should, but I'm going to check that this morning.

    However, I've been given conflicting answers on whether the 06 Prius already has DRLs (daytime running lights). Perhaps it depends on which state they've been delivered to.

    The contractor assigned to make RIV-mandated modifications is Canadian Tire, and it seems that can be done at any branch with an auto repair shop. I've been given a ballpark estimate of CAN$300-500 by two different Toyota repair shops.

    The practicality of metric conversion is simple. There's a metric/english switch on the dashboard. The RIV requirement is to make sure that whatever units are used, there's a permanent label on the car to indicate the fact.

    Today, my goal is to figure out the logistics of purchasing, reselling, and moving the car. Should my Illinois relatives drive the car into Canada, or should I go south of the border to bring it over? Once I figure that out, they will work with me to find a car there (06 Prius, package #3, any light color except white) and make the purchase next week.

    Blair
     
    #6 BlairMartin, Sep 1, 2006
  7. vkykam

    vkykam New Member

    Joined:
    Jul 15, 2006
    27
    0
    0
    Don't have your relatives drive it into Canada; that'll make the logistics worse.

    The problem is that the original copy of the ownership has to be held at the US border for 72 hours, followed by the stamped original copy to be brought over to the Canadian side of the border for duties and to be issued the Form 1. Your relatives won't be able to just give you the ownership and leave; you'll have to go back to the border to go through the import process. I could be wrong, but I don't think your relatives would be able to declare the car for you as they cross the border. You may want to check with CBSA regarding that.

    Also, if your relatives drive it over, you'll have insurance issues, as it'll be their plates and you likely won't be able to get insurance. If they sign the ownership to you in Canada, then you'll effectively be driving an unlicensed car because the plate belongs to them.

    This is the way I handled the logistics. Flew to Cincinnati on Friday, picked up the car, got a temporary plate on the car, and drove to Detroit and dropped off the ownership at US Customs. Went back Monday, picked up the ownership with their stamp on it, drove over the bridge to Windsor, and declared the car at the Canadian border. It was there that I paid the taxes and they issued the RIV form 1. If your relatives buy the car for you, then they can likely get temporary plates on the car for you if you give them a power of attorney (may need to be notarized). They can then courier the ownership to the US border of your choice, and you can go and pick up the car and drive back without delay if you time the 72 hours correctly. Also, pay attention to US border hours, Detroit was 24/7, but Buffalo/Lewiston is 8:30-4:30 M-F.

    For the warranty, I called Toyota Canada, and they're honouring it. In fact, because it was a US car, I was able to purchase the extended warranty thru this web site from Troy as well, which can be used in Canada.

    As for the DRL, I managed it for $150 parts included in the GTA area from my local mechanic. Toyota shops might quote higher as they probably would be putting the actual factory Prius DRL modules. Canadian Tire is not contracted to do the modifications, and you are free to have the modifications done anywhere. Canadian Tire is only contracted to perform the federal inspection.

    The federal portions of the taxes (GST, duties, air con excise tax) are paid at the border. The provincial sales tax is paid at the time of titling the car, after the modifications are done and inspected, and you have stamped form 1 and 2 in your hands. In Ontario, there is up to a $2000 PST rebate, but is charged at time of titling. The refund is issued by submitting a claim that took me 4-6 weeks on my Honda Insight. I mailed my Prius rebate claim this week, so hopefully I'll have the money by Thanksgiving for the Prius.

    However, there's still one issue I think. If your relatives buy and get proper license on the car, they'd have to pay IL taxes. If they get temp tags (usually a 30 day tag) they can get around the issue of paying the state tax. Temp tags can be used for things like transit or for an in-between time where you get the car fixed to be road worthy. However, the issue may arise where IL might not issue a second temp tag on the car one right after another, even if there's a change of ownership. You should call the IL DMV to find out.

    <div class='quotetop'>QUOTE(Blair @ Sep 1 2006, 09:29 AM) [snapback]312681[/snapback]</div>
     
    #7 vkykam, Sep 2, 2006
  8. Sarge

    Sarge Senior Member

    Joined:
    Nov 28, 2005
    1,320
    774
    1
    Location:
    Milton, Ontario, Canada
    Vehicle:
    2023 Prius Prime
    Model:
    XSE Premium
    <div class='quotetop'>QUOTE(Blair @ Sep 1 2006, 09:29 AM) [snapback]312681[/snapback]</div>

    You are most welcome. :) In fact, I tend to ramble a bit when I post, which is a bad habit of mine... ;)

    I had actually considered doing what you are trying to do, but personally I find it just a bit too much hassle and paperwork for what may amount to a couple thousand dollars. I mean, we are taking about a ~$30K purchase here... But that's me...

    Anyway, good luck in your mission, hopefully all will go smoothly for you!

    Kevin
     
    #8 Sarge, Sep 2, 2006
  9. BlairMartin

    BlairMartin New Member

    Joined:
    Aug 14, 2006
    19
    0
    0
    I think I've been lucky. My wife and I called a dozen US dealers and found one who offered to sell us a 2006 Prius track car. It's seven months old but only has 85 miles on the clock. Yes, I know the numbers don't add up, but two family members who live nearby went to check it out, and they tell me it's fine. It sure looks like a new car, but legally it's pre-owned. Not much of a break in price, though: $600 below MSRP.

    Blair
     
    #9 BlairMartin, Sep 24, 2006
  10. aaf709

    aaf709 Ravenpaw of ThunderClan

    Joined:
    Apr 23, 2005
    3,862
    18
    0
    Location:
    San Diego, CA
    Vehicle:
    2022 Prius Prime
    Model:
    Limited
    <div class='quotetop'>QUOTE(Blair @ Sep 1 2006, 06:29 AM) [snapback]312681[/snapback]</div>
    What switch? The one on the dash? That one takes care of the speedometer only.
     
    #10 aaf709, Sep 24, 2006
(You must log in or sign up to post here.)