Take a 2012 760Li USA MSRP of $137,300 And a Canadian MSRP of $186,000
After tax and the fee, You save ~30k.

IMO the myth applies to SOME cars, I think the rule applies best to USED cars. The gap in price for buying a new car in the US compared to Canada has also lessened, the customs(tax) is in place to almost equal the price. I got this information(and more but I'm not going to explain everything he said) from a current class I'm taking at BCIT from a current CBSA customs officer.

Also, when I recently imported a car, I paid $12% at the time of import(customs), and I was notified that ICBC will be charging me another 5%. So in total it's 17% + RIV fee + Inspection etc.

As I outlined before, all the little things add up.
You're paying at LEAST 18.1% in duty and tax. (to be fair, you pay 12% taxes in canada as well).

but you have to factor in:
- transportation to and from the states (~$100)
- recall letter (upto $500)
- activate or install DRLS ($1-200)
- Federal insp. repairs ($1-400)
- RIV fee ($200)
- AC tax ($100)
- temp insurance in canada for inspections (~$100)
- state insurance to drive back (~30-50)
- time
- reduced resale value in canada

all in all, there are still some deals to be had.. but mostly when you are paying $40-50k+ for a car.

And the stupid tire levy that Canadian tire charges which is $5 per tire
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If you're driving it over, then there is no transportation fees right? I also heard that if the car doesn't have DRL, you have to get it installed.

You save the most when importing a used, made in North America car from the USA. Best examples are lexus RX, BMW X5, MB M, GL class.
Foreign makes are a hit or miss due to the duty.

Ever since the government slapped the gas guzzler tax on imports theres not much of an incentive to import a gas guzzling foreign car like an AMG.

correct on both terms

To add to this list, if you fail the provincial vehicle inspection, you must repair everything on the list prior to re-inspection. So keep that in mind as a variable cost and that some inspection facilities do not provide free re-inspections.

as others have mentioned, it depends on what cars. but people buy a lot of USED cars from the states as these are generally much much cheaper than what what the same used car sells for in the Lower Mainland.

also, in recent years many car manufacturers have lowered the Canadian price of their cars to match the USA more tightly. they adjusted for the dollar difference and realized all the importing going on.

just a quick question, so this 18.1% tax is from the price i bought the car for? or the price of this car at the dealership? if it was the sale price and i were receiving the car for free from a relative, how would i be taxed?

First, I have a giant hunch that you'd get detained at the border for a really long time with them interrogating you and asking for banking details to prove that you got the car for free. Then, they'd most likely look up the estimated retail value for a car like yours, and then charge you for that. So something like craigslisting comparable cars and charging you based on an estimated value.

That's just my guess, though.

:suspicious: sounds like a huge hassle
would i rather have my relative "sell" it to me at a low price

If it's something like a Bimmer and they're selling it to you for like $3k, expect to be interrogated just as hard. A vehicle is not a small thing, and if they think you're trying to dodge taxes on something that big...not fun.

+1 to this...they are not stupid and will tear you a new one by seizing your car and making you pay a penalty to get it back. Have fun getting searched in your undervalued car every time you cross the border. :fullofwin:

might as well report that i paid an average craigslist price and skip the interrogation process then :okay:

Might as well report what you actually paid for it and have all the documented proof...

If you actually do get it for free, you'd better have extremely detailed documentation--who the person is in relation to you, the reasoning behind why they're giving it to you for free (especially across the border), and be ready to pay 'fair market value' in import taxes if they ask you to. Think about it like this: you're getting a car for the tax on what it costs rather than actually paying for the whole thing.

And you may want to start doing some CL searches for some comparable cars so that you can find out how much tax you'll be paying in case they do bust your balls. Which they probably will.

+1.

Customs does not care if you got the car for free. They are more concerned with the actual value of the car and will charge you accordingly.

This is not, or maybe, shouldn't, be true.

You get charged taxes on what you paid.. If you actually did get it for free, you shouldn't have to pay taxes. However, as you can imagine, fraud is so common, that they will interrogate you like no tomorrow. If you did get it for free, be prepared to do some explaining, and have the proof. Like Graeme said, have their name, phone number, address, relation, signed letter, pictures of them, their kids, their dog, your family tree drawn out, etc.

If you get an item as a gift or for free regardless of what it is. You will be taxed/dutied according to its market value.

In the above example with the car. If it is valued (Canadian Red Book) at $10,000 then you will pay taxes and possibly duty when importing it into Canada. Even though you paid $0.00 for it, it is still subject to taxes, duty, and any other import fees based upon its value

With that being said you are correct in terms of having the appropriate proof that you received it as a gift with the sellers contact info, bill of sale, etc.

Hmm, didn't know that. That's kinda crappy.
CBSA website doesn't even say..

This indicates that you won't pay any tax/duty
This indicates that you MAY still have to pay duty, but you still won't have to pay tax.

BSF5048 : Importing a Vehicle Into Canada

I forgot where I read this (I think BC Sportbikes or Pelican Parts) but basically the guy either had a BMW motorcycle or a Porsche 911 gifted by his grandfather and was notarized that it was a gift at zero value etc. Ended up paying taxes (no duty due to age) by factoring declared and market value.