Do you own a Canadian car and are preparing to sell it? Have you found a buyer in the US? Well, be ready for a roller-coaster ride. It’s doable, but it’s not that simple.
If anyone says it is, they could be pulling you into something sketchy. And I’m sure you want to do things by the book. If you don’t, you’ll get booked.
To sell a Canadian car in the USA, clear with the relevant US federal agencies before importing it. Once you receive payment, transport the car into the country. It will be upon the buyer to register it as a nonresident vehicle. You should work with the buyer since they are importing from you.
While that process looks straightforward, it isn’t. It becomes complicated if you’re a non-US citizen. Are you? Well, things may not be successful for you.
That’s why many car forums online recommend that you use a dealership. If you’re not willing to sweat, bleed, or tear, talk to an authorized car seller.
In this article, you’ll see how to sell your Canadian car in the USA. While the steps may not be comprehensive, they form a bulletproof method. After the article, you’ll only have to talk to a few experts. And not before long will you make your sale.
Now, let’s try and sell that vroom-vroom machine of yours!
The Canadian Cars Most Sold To The US
From the Detroit News, here’s a table showing the car brands built in Canada and sold in the US:
|Fiat Chrysler Automobiles||Dodge Grand CaravanDodge ChargerDodge ChallengerChrysler PacificaChrysler 300||General Motors Company||GMC SierraCadillac XTSChevrolet Equinox|
|Ford Motor Company||Lincoln MKX (Nautilus)Lincoln MKTFord Flex|
|Multimatic Inc.||Ford GT||Honda Motor Company||Honda CRVHonda Civic|
News has it that in 2020, vehicle exports from Canada to the US rose by 4.3 percent. That moved the numbers to a whopping 309,505 units. Between January and May 2021, 151,952 vehicles moved into the US.
It seems that US residents are developing a particular liking for Canadian cars. One reason is that they are cheap, especially when the USD is stronger than the CAD.
And that’s where you step in. But before you do, let’s see what the US authorities say.
What The US Says About Bringing Vehicles Manufactured Abroad
Your sale must involve, among others, the following agencies:
1. The US Customs and Border Protection (CBP)
2. The US Environmental Protection Agency (EPA)
3. The Department of Transportation (DOT)
That means that government involves itself in car importation. These institutions have a hand on anything brought into the country.
So, it would be best not to gloss over their stipulations. Let’s check them one by one.
The US Customs and Border Protection (CBP)
The CBP makes it clear that car importation isn’t easy. Here are highlights from their website:
1. Any vehicle you bring into the US is subject to the law. Besides, the law sets bumper and air pollution control standards.
2. So, the CBP will only accept vehicle imports if they conform to the set standards.
3. If a vehicle does not conform, the buyer should bring it to compliance. If not, the CBP will export or, in worse cases, destroy it.
If the car is compliant, the seller (importer) will need to fill the required forms. Once the step is complete, they will receive a written approval clearing them.
Now, if that’s what the CBP says, what about the EPA?
The US Environmental Protection Agency (EPA)
About Importing Canadian Vehicles, The EPA Says:
1. Many Canadian cars share emission control systems with US-certified vehicles.
2. But, some of them may not conform to the EPA requirements.
3. So, importers (your seller) should ensure the vehicle meets the standards.
4. If the Canadian car is identical to a US-certified one, there should be a label. The label is title Vehicle Emission Control Information.
5. The label contains the manufacturer’s name and its trademark. Also, it has an unconditional statement of compliance.
6. You should ensure that your car’s manufacturer provides a letter of compliance. Besides, it should state that the vehicle complies with all EPA regulations.
7. Ensure that your compliance information comes from any manufacturer on this list.
So, with the EPA done, let’s hear from the DOT.
The Department of Transportation
On their part, the DOT runs the MVII (Motor Vehicle Importation Information) System. It is a database that collects:
1. The names and addresses of individuals importing the vehicle. Here, your buyer’s details will come in handy
2. The Vehicle Identification Number (VIN) of the car you’re selling
3. Information of the registered importers
Apart from the MVII, the DOT has set the Motor Vehicle Safety Standards (MVSS). So your car also needs to be MVSS-compliant to move across the border.
Twice a week, the MVII database picks information from Customs (CBP) as a vehicle enters the US.
If your car is compliant with the CBP and EPA stipulations, its details will show on the database.
So, What Happens Next?
If cleared, the vehicle will get to the state of destination. Once it arrives, your buyer should confirm receipt. Depending on the payment method, you may wait a few days before receiving funds.
For cross-border transactions, I recommend that you use escrow. Once the buyer receives the car, the funds will move to your account.
Now, The Vehicle Should Be In The US
If you followed due process, the buyer should already have it. Then, depending on the state, they should meet the needs of their DMV.
For instance, if your car gets to a Californian resident, they should:
1. Have proof of ownership
2. Show evidence from CBP that cleared the vehicle
3. Show a weight certificate
4. Pay some applicable frees
5. Fill some forms
But that shouldn’t be your concern. Once you finalized the transaction, tell the buyer to comply. That way, they can start driving as soon as their DMV clears the vehicle.
Although this post provides you with steps, you need to consult the relevant agencies. Also, remember that regulations change, and some procedures will take time.
Reckon that this article is only as a guide. The situation on the ground will be different, that I promise you.
But, if selling the Canadian car in the USA seems tricky, get a dealer. Choose a reputable one that won’t trick you and leave with your vehicle. This choice may save you a lot of time and even some money.
Let your seller know that they’ll have much to do. Read Christopher’s story and share it with them. It should prepare them for the inconveniences.
Thanks for reading, and don’t hesitate to share!