Will a dealership sell me a new car if I live in another province?
I live in Ontario and the new car I want isn’t available here at the moment. I’m wondering if it’s possible to buy one from a car dealership in Quebec or British Columbia. Are there any rules against this? If I did, would I have to pay provincial sales tax in both provinces – there and here? – Ken, Mississauga
If you are looking for a car at a dealership in another province, it is up to the dealership to choose whether or not to sell it to you.
âThere is no regulatory requirement prohibiting this,â says Viraf Baliwalla, an auto broker in Toronto. âMost dealerships want to sell vehicles no matter where you live, but that said, some dealerships don’t want to go the extra mile. ”
Andy Tan, general manager of OpenRoad VW in Burnaby, B.C., says out-of-province buyers are generally looking for used cars. This is because buyers could, at least until this year, purchase most new car models in their home province.
Traditionally, Dealer Tan has sold one to two used cars per month to out-of-province buyers, he says. But that number has grown to three or four per month, as the computer chip shortage has slowed production of new cars and boosted demand for used cars, Tan said.
What about new cars? With some new models in short supply, will a dealer sell to an out-of-province buyer?
âIt depends on the dealership – we are all franchisees and run our operations differently,â says Tan. “[Some dealers] may wish to reserve this limited inventory for customers who will continue their service needs with them, while [other dealers] can just care about the sale.
In other words, you may need to call.
âI had a number of customers in BC looking for a RAV4 Prime and I could get them here in Ontario, but they couldn’t find them there,â Baliwalla says.
Some vehicles sell quickly in some provinces and not in others. In addition, some new models are not shipped to all provinces. For example, when automakers launch new electric vehicles (EVs), they are often available in British Columbia and Quebec before other provinces.
This is true for the new Volkswagen ID. 4 electric SUVs. The first models available went to Quebec and British Columbia. They will then arrive in Ontario and Volkswagen hopes to sell them nationwide next year.
If you’re buying a new electric vehicle from an out-of-province dealership, make sure your in-home dealership can service it, Tan says.
Volkswagen dealers, for example, need special equipment and training to maintain and repair a new ID. 4s because âelectric vehicles are a bit tricky with high voltage security,â Tan says.
“Ontario is on the shortlist to receive these licenses [to service ID. 4s]”, said Tan.”[But] this vehicle purchased in Quebec may not have a dealer in Ontario who can service it if something should go wrong in the near future.
Determining taxes can be overwhelming.
Wherever you buy you will have to pay 5% GST. But if you buy from a dealer in another province – say if you live in Ontario and buy in Quebec – do you have to pay that province’s sales tax plus your own province’s sales tax?
Although the rules vary by province, if you have a car shipped between provinces, you usually only pay tax for the destination province, Baliwalla says. While some provinces charge you provincial tax when you buy from a dealership, Quebec allows you to wait for vehicle registration.
“If you buy from a dealer, you will have to pay GST on the product, but you will not have to pay the Quebec sales tax (QST),Says Sophie Roy, spokesperson for the SociÃ©tÃ© de l’assurance automobile du QuÃ©bec (SAAQ). âWhen you register your car in Ontario, then you will have to pay provincial tax there. ”
On a new car, that means you would skip the 9.9975 percent QST and pay only the 7 percent Ontario tax. This would apply to new and used cars as long as you buy from a dealership.
If you buy from an individual as part of a private sale, you will have to pay Quebec sales tax on the spot, Roy said. then pay Ontario sales tax when you register at home. For used cars, it’s 13 percent.
As long as you do not register the car in the province where you purchased it, you can recover the out-of-province tax. âYou can ask the province where you bought it to try and get a refund,â Baliwalla explains. “It can take a long time.”
In British Columbia, buyers typically pay Provincial Sales Tax (PST) at the dealership. But if you are an out of province buyer, you can apply for an exemption as long as you buy from a dealership and not through a private sale.
If you don’t get the exemption, you’ll have to pay PST – it ranges from 7% on vehicles priced under $ 55,000, to 20% on vehicles costing $ 150,000 or more – and you will be then refunded when you get home.
To make it even easier, a dealer can collect provincial sales tax for you and add it to the purchase price if you provide proof of residency, Tan says.
Taxes won’t be your only expense. Transportation costs range from about $ 600 to $ 750 to get to the next province to $ 1,500 to $ 2,000, or more, to cross the country.
âThroughout COVID-19, shipping has become much more expensive,â Baliwalla says. âI shipped a used vehicle from Ontario to Nunavut last summer and it was probably in the order of $ 2,500.
If you plan to fly out to collect a car and return with it, do the math to see if the expedition makes more sense, suggests Baliwalla.
âThe moment you get on a plane and pay for accommodation, it adds up. Even though you can drive in either direction, it will cost you some time and money.
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