QuestionQUESTION: Hello,
I am a Canadian trying to buy a new car from NY but need some clarification on the procedure. I'm familiar with forwarding the title to US customs and the Canadian side of things but:
1. BMW and Lexus dealers I contacted say they have signed agreements with BMW/Lexus headquarters that prohibit them from selling new cars to Canadians. Do you know if there is such a thing?
2. If I can find a dealer that will sell it to me, do I get the in-transit permit from them? Or do they provide the title/bill of sale and I have to go to Dept. of Motor Vehicle, get the permit and then go back to the dealer to drive the car.
3. Finally, if I get a in-transit permit, does that automatically mean that I won't be charged NY sales tax?
Thank you for any help you can provide on this matter.
Eric
ANSWER: The last dealer I worked for was a BMW-Land Rover franchise (Holtz, in Rochester), and I was told that part of the franchise agreement prevented U.S. dealers from selling outside the 50 states. Is it true? I can't say for sure, but I do know that Towne (outside Buffalo) doesn't pay attention to it, as they are selling to Canadian residents. As for your other questions:
1) The dealer can obtain the in-transit permit for you, as long as your insurance agent has provided the necessary documentation (a very particular letter, written on the agency's stationery). Along with the in-transit permit will be the C of O (certificate of origin), showing that the car is brand-new, and they're selling it to you. You'll take that to your provincial motor-vehicle department in order to get the Canadian title (new cars in the U.S. have no title).
2) As long as you have no residence within the U.S., there will be no sales tax collected from you if you're using an in-transit permit. (The permit costs $10.00 US, by the way. That's pretty much all the dealer should be charging; there's no need to do the New York State safety inspection that costs $10.00-$21.00, nor should they charge any registration fees. There is a documentation fee of $55.00- it's a gray area as to whether or not you should be charged this. Hey, if you got a good deal, it's only $55.)
3) The in-transit fee is supposed to be for transport purposes only; you shouldn't be sightseeing with it on your vehicle. The real persnickety New York State troopers can get a little technical on this one, so you should be picking up the car and immediately high-tailing it for the border, if you catch my drift.
Good luck, and feel free to check back here with any more questions. I have a lot of friends in Ontario and am always happy to help out fellow Canadians.
O Canada! Our home and native land....
---------- FOLLOW-UP ----------
QUESTION: I was told by Towne BMW that they could sell the car to a US friend/relative who could then sell it to me. Only issue I could see was that I would have to pay the sales tax for when my friend is doing the purchase (I assume when I "buy" it from my friend, I can get a in-transit permit to avoid being sales taxed again).
Is it possible (if they really won't sell to Canadians) to get my friend to buy the car with an in-transit permit and then "sell" the car to me? i.e. By-pass the 50 state law and the Sales Tax?
Thanks for taking the time to answer my questions,
Eric
AnswerThis is getting complicated. The in-transit permit is for someone purchasing a car in New York state that doesn't reside in NY. If your friend/ relative lives here, then they can't get the permit. You'd have to know someone that lives outside NY that can purchase the car for you, then they would sell it to you. BUT- they need a title to transfer ownership, which means they'd have to title it in their state, which means they'd have to pay the tax. If you know someone that lives in New Hampshire, you'd be all set- they have no sales tax. You also need to make sure you're 100% clear what's required of you when it comes to provincial motor-vehicle regulations. I've always been under the impression that getting cars across the border was difficult.
