Importing a car from Canada that has a loan

[canadagirl89 8]

I'm with Scotiabank and I just called the loan department. The guy said that the US customs won't let me import my car if it has a loan on it, then he said that perhaps I could find a US bank that will pay off my Canadian loan.

I'm going to be getting my IR-I visa next week so will be travelling pretty soon. My husband is going to go to a credit union on Monday to ask, but I don't see them giving out a loan to him unless they see the actual paperwork of my car, which they can't see until I get there.

Will CBP give me issues about this? Do I need to have any extra paperwork?

Help?

[canadian_wife 1,822]

Someone will please correct me if I am wrong but I thought one could only import a car if one had possession of the title.

good luck

Edited to add - according to https://help.cbp.gov/app/answers/detail/a_id/218/~/requirements-for-importing-a-vehicle-%2F-vehicle-parts one must "have valid proof of ownership, which is an original certificate of title, or a certified copy of the original".

I am not sure how this works if there is a loan on the car.

Edited July 3, 2015 by canadian_wife

[canadagirl89 8]

I do have the title. It's my car, it's just that there is a loan on it.

[NikLR 13,227]

Yes the CBP will have an issue.

Generally speaking you won't be able to import a car with a lien because you don't actually own the car. Whomever you pay for the loan actually owns it. For instance we have a loan on our Jeep. That company technically owns it until we pay off the loan. Our registration states that there is a lien on the vehicle. Many loans state you cannot export the car (even loans from automobile manufacturers like Ford.) Without a US based loan it would be almost impossible to register the car in the USA as well.

Generally the best idea is to sell the car and buy a new one down here.

You can ask for a copy of the paperwork from the loan company or bank if you think you could get the loan transferred but it's unlikely that they'll do so until you can move from Canada.

You have a year in which to import your vehicle. However keep in mind that you can't insure it in the USA and that many insurance companies won't insure the vehicle if you're not a resident of the province you live in.

[Dashinka 24,493]

This was an interesting new question to me so I did a little research. Basically, NLR covered the best option that I found. The red tape in moving a car with a clear title is huge, let alone one with a lien holder. You mentioned you have the title, but that title should also list your bank as the lien holder' so it is not free and clear.

So I agree with NLR, sell the car in Canada, and find a new/used one here.

Good Luck!

Edited July 3, 2015 by Bill & Katya

[canadagirl89 8]

Thanks NLR.

It just sucks cause as soon as you drive a car off the lot you won't get remotely what you paid for it, which means I'd still have left overs of the loan. This is the biggest reason we didn't want to sell it.

I'll still have payments for about 2 years even if I got 60% of what I paid for it. Also I can't fly cause it's too expensive, and renting a car probably isn't much cheaper.

We're trying to put our heads together now to make a decision. Thanks again!

[NikLR 13,227]

Sorry about it but at least you asked before you got to the border and were frustrated.

For me it was 4 times more expensive to take the Uhaul with my stuff than it was to fly. But it was an 18 hour drive and my husband flew up to drive down with me.

Car rentals don't allow you to go over the border either.

A thought may be to just take out a loan in the USA, if possible, to cover the cost of the loan in Canada. Pay the Canadian loan off so you have a clear title and then just pay the US loan as if it was a car loan vs a normal loan. The interest rate is likely to be higher, but you'd be able to import your car. I'm not sure how doable this would be or how much it would cost to get XX dollars over the border.

RBC and TD both let you transfer money from US accounts to Canadian ones within their banking system. RBC is also fairly easy to get a credit card with once you have a job in the USA because you can get them to look into your Canadian credit. It may be that you can transfer the loan to RBC and then to RBC USA, then import the car? I'm not sure.

[Shauneg 762]

If you are worried about losing money, I think the best way to go would be to get a cash loan here, either your/fiance's name or both and pay off the car note. You'd still owe money but not aganist the car. Your title would be free and clear and then you'd actually own the car....not all cars are importable but if you went this far in checking on getting it across the border then I'm sure you've covered that.

[Rob L 3,811]

Sorry about it but at least you asked before you got to the border and were frustrated.

For me it was 4 times more expensive to take the Uhaul with my stuff than it was to fly. But it was an 18 hour drive and my husband flew up to drive down with me.

Car rentals don't allow you to go over the border either.

A thought may be to just take out a loan in the USA, if possible, to cover the cost of the loan in Canada. Pay the Canadian loan off so you have a clear title and then just pay the US loan as if it was a car loan vs a normal loan. The interest rate is likely to be higher, but you'd be able to import your car. I'm not sure how doable this would be or how much it would cost to get XX dollars over the border.

RBC and TD both let you transfer money from US accounts to Canadian ones within their banking system. RBC is also fairly easy to get a credit card with once you have a job in the USA because you can get them to look into your Canadian credit. It may be that you can transfer the loan to RBC and then to RBC USA, then import the car? I'm not sure.

You can bring Rental cars from the US to Canada and vice versa. I have done it dozens of times both ways.

[Rob L 3,811]

I do have the title. It's my car, it's just that there is a loan on it.

Can you possibly take this path?

1. Borrow or use assets to pay off the loan

2 Import the lien-free car

3 Use your spouses credit to get a replacement loan to restore the assets or loans after import ( Car loan rates are very favorable if there is 80 % equity in the car)

I don't think you will have a problem with the import, you will have an issue when you go to register a car in the state of your residency and you need to list any lien holders. Your lender will be contacted to see if they object to you being granted title to this vehicle. Most likely they will object to giving you clear title without a payoff as they will have a hard time getting money from you if you default.

I would call your lender to see how they have handled this in the past. Chances are they do have a work around that protects their interest and lets you keep you car. Don't forget that as a borrower you are a customer, and lenders love to keep customers!

Edited July 5, 2015 by Rob L

[canadagirl89 8]

Can you possibly take this path?

1. Borrow or use assets to pay off the loan

2 Import the lien-free car

3 Use your spouses credit to get a replacement loan to restore the assets or loans after import ( Car loan rates are very favorable if there is 80 % equity in the car)

Thanks Rob, I decided to fly, leave the car here and see what I can get in terms of loans in the US once I arrive. Going to bring the car paperwork with me so hopefully I can find a bank willing to take over my Canadian loan. If I am able to I will come back and bring the car down. For now it's too rushed for me to make a decision as I will be receiving my visa this week and I just need to be with my family asap.

A week isn't enough time for us to figure out banks, loans, etc cause I may have to transfer my Scotiabank loan over to TD or RBC potentially.

[Rob L 3,811]

Thanks Rob, I decided to fly, leave the car here and see what I can get in terms of loans in the US once I arrive. Going to bring the car paperwork with me so hopefully I can find a bank willing to take over my Canadian loan. If I am able to I will come back and bring the car down. For now it's too rushed for me to make a decision as I will be receiving my visa this week and I just need to be with my family asap.

A week isn't enough time for us to figure out banks, loans, etc cause I may have to transfer my Scotiabank loan over to TD or RBC potentially.

Yes a week is tight, you don't need to rush the import, although it is nice to do that at the same time your visa package. Enjoy your family time! That is the entire reason for this excercise.

Can you possibly take this path?

1. Borrow or use assets to pay off the loan

2 Import the lien-free car

3 Use your spouses credit to get a replacement loan to restore the assets or loans after import ( Car loan rates are very favorable if there is 80 % equity in the car)

I don't think you will have a problem with the import, you will have an issue when you go to register a car in the state of your residency and you need to list any lien holders. Your lender will be contacted to see if they object to you being granted title to this vehicle. Most likely they will object to giving you clear title without a payoff as they will have a hard time getting money from you if you default.

I would call your lender to see how they have handled this in the past. Chances are they do have a work around that protects their interest and lets you keep you car. Don't forget that as a borrower you are a customer, and lenders love to keep customers!

opps sorry , I missed the part about you calling Scotia Bank already

And I did find this on the CPB site

http://www.cbp.gov/trade/basic-import-export/export-docs/motor-vehicle

• Where title evidences third-party ownership/claims. If the used, self-propelled vehicle is leased or a recorded lien exists in the U.S., in addition to complying with paragraph (b)(1)(i) of this section, the provisional owner must provide to Customs a separate writing from the third-party-in interest which expressly provides that the subject vehicle may be exported. This writing must be on the third-party's letterhead paper and contain a complete description of the vehicle including the Vehicle Identification Number (VIN), the name of the owner or lienholder of the leased vehicle, and the telephone numbers at which that owner or lienholder may be contacted and must bear an original signature of the third-party and state the date it was signed.

Edited July 5, 2015 by Rob L

[NikLR 13,227]

You can bring Rental cars from the US to Canada and vice versa. I have done it dozens of times both ways.

they ask and can charge you if you plan on it. Even when we rented a car in Atlanta to drive to Alabama they asked if we were going to drive over the border.

[Rob L 3,811]

they ask and can charge you if you plan on it. Even when we rented a car in Atlanta to drive to Alabama they asked if we were going to drive over the border.

Must be my rate plans I am hooked up with. They do ask ( or I volunteer) if I am on a border state, and they never changes the rate ( unless I ask to drop in the foreign city)

[Lemonslice 4,838]

Must be my rate plans I am hooked up with. They do ask ( or I volunteer) if I am on a border state, and they never changes the rate ( unless I ask to drop in the foreign city)

Same experience here.