# Can a Canadian buy a BMW in the US and bring it back?



## virtualrain (Dec 29, 2001)

With the USD/CAD exchange rate being as favorable as it is, I got to wondering if it was possible and practical for a Canadian to buy a BMW from a US dealer and bring it back to Canada. The difference in MSRP between comparibly equipped cars would seem to make it very attractive, particularly for higher end products. According to www.riv.ca, there is a process to it but it sounds manageable.

My questions are:
- Will a US dealer sell to someone out of state/country?
- Will a US purchased BMW imported into Canada have its warranty honored by Canadian dealers?

What about ED... The US Euro Delivery pricing is even more favorable than in Canada... Is there any reason why you couldn't do a US ED program and then when the car gets to the US, import it into Canada?

Has anyone considered or tried this?

Thanks!


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## 99flhr (Apr 12, 2005)

Aren`t the duty taxes going to negate your savings?


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## HW (Dec 24, 2001)

99flhr said:


> Aren`t the duty taxes going to negate your savings?


yep.


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## virtualrain (Dec 29, 2001)

Obviously you pay the taxes either way so the only difference is the duty, which I understand is about 6% but I don't yet know enough to say under what circumstances that applies (i.e. new or used or both).

On an M5 (for example) assuming you can get them for MSRP, even with the exchange and duty the savings is still about $20K CAD.


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## WAM (Jan 30, 2002)

You can buy a US model and take into Canada. My uncle bought a Saab 9-3 (yes, really!) from Texas, and drove it back to Montreal, last year.

I don't know what the paperwork process involved. He was interested in buying a Diesel Benz too, but mentioned something about Transport Canada permitting only certain models to be imported into Canada. So, I suggest you start there.

Warranty is a separate issue, check with BMW Canada. I believe BMW Canada is a sort of 'subsidiary' to BMW NA.


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## HW (Dec 24, 2001)

WAM said:


> Warranty is a separate issue, check with BMW Canada. I believe BMW Canada is a sort of 'subsidiary' to BMW NA.


i believe it's separate. asfor import, there was some sort of agreement that you had to sign saying that you will not export you canadian bmw to the u.s. purchased less than 1 year ago. this was the case when the canadian dollar was at ~1.6 to the u.s.. not sure if this is still the case right now while the exchange is 1.15. :dunno: maybe the u.s. side of things don't have such thing to sign.


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## neill (Oct 4, 2004)

WAM said:


> I believe BMW Canada is a sort of 'subsidiary' to BMW NA.


BMWNA and BMW Group Canada are indeed separate subsidiaries.......


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## Malibubimmer (Sep 28, 2005)

It will need to have running lights on at all times. The Canadians require a lighted target. And the speedo will have to display KPH rather than MPH as its primary measurement system. (Although when I drove in Montreal and Quebec on highways where the limit signs said "100," our Neighbors to the North acted as if _that _was in MPH rather than KPH.)


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## virtualrain (Dec 29, 2001)

Thanks all... As pointed out in my OP, every detail related to importing a car into Canada is covered at www.riv.ca including required modifications, documentation, process, etc.

What of course is not on that site are specifics related to how BMW handles this kind of transaction on the sale and warranty side which is where I really could use some input from knowledgeable folks. I guess since this is likely a rare transaction, I shouldn't expect a lot of first-hand experience to come forth quickly on this.

So to shift the topic of this thread a little... Have any other Canadians considered buying a BMW in the US? If not, is it because you feel the savings don't justify the hassle or is it some other reason?

Cheers,
- VR.


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## iove75 (Sep 10, 2004)

Why don't you move here? US-Canadian relations is going to get cozier.


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## virtualrain (Dec 29, 2001)

iove75 said:


> Why don't you move here? US-Canadian relations is going to get cozier.


I Love you guys but not that much! :thumbup:


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## BayAreaBMWFan (Aug 8, 2004)

I think the warranty for US Spec cars sold initially in the US are honored by Canadian dealers. I do not think the scheduled maintenance carries over.
You will have to do a few things including DRL , bumpers and some child seat belt related stuff. I almost bought a US spec E38 which was exported to Canada and then made Canada ready by the same owner. I think that most current BMWs should be easy to make Canada ready. I am sure they meet the 8KmH bumper test, DRLs can be programed in and the tether points and LATCH are already present.

Since you are in Vancouver, you could actually drive down to the US for the scheduled maintenance (once every 15K) .


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## Shades (Sep 24, 2002)

neill said:


> BMWNA and BMW Group Canada are indeed separate subsidiaries.......


The only thing that is seperate is that the cars are imported through Halifax for all the Canadian dealers by BMW Canada.BMW Canada is run by and overseen by BMWNA in New Jersey.


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## virtualrain (Dec 29, 2001)

Shades said:


> The only thing that is seperate is that the cars are imported through Halifax for all the Canadian dealers by BMW Canada.BMW Canada is run by and overseen by BMWNA in New Jersey.


Are you sure about this? How do you know?

I was under the impression that BMW Canada (like most multi-national subsidiaries) is an indpendent organization designed to deal with the unique business laws and tax requirements, etc. related to the nation in question.

Evidence in terms of products would also indicate that BMW Canada is not related to BMWNA since Canada has always enjoyed the full range of products and options like the Europeans but unlike the US.


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## virtualrain (Dec 29, 2001)

BayAreaBMWFan said:


> I think the warranty for US Spec cars sold initially in the US are honored by Canadian dealers. I do not think the scheduled maintenance carries over.
> You will have to do a few things including DRL , bumpers and some child seat belt related stuff. I almost bought a US spec E38 which was exported to Canada and then made Canada ready by the same owner. I think that most current BMWs should be easy to make Canada ready. I am sure they meet the 8KmH bumper test, DRLs can be programed in and the tether points and LATCH are already present.
> 
> Since you are in Vancouver, you could actually drive down to the US for the scheduled maintenance (once every 15K) .


Thanks. Do you have any insights into whether a US dealer will actually sell a car to someone from out of state or out of country?


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## BayAreaBMWFan (Aug 8, 2004)

virtualrain said:


> Thanks. Do you have any insights into whether a US dealer will actually sell a car to someone from out of state or out of country?


Interesting point. Out of state happens all the time; out of country might be a new one. I think you should call BMW USA to get a definite answer to that. They might require a US address for the buyer if the car is being sold by a US dealer. From the dealer's perspective it does not make a difference. You definitely do not need any proof of legal (from immigration perspective) US residence to buy a car.

The only challenge is that the US dealer may not be equipped to do Canadian titling/licensing. You will have to ask them to issue temporary plates/registeration like what they would do for an out of state buyer. Hopefully the Canadian titling agencies will recognize your temporary registration. And make sure they do not charge you for the full title/reg etc..

And IIRC BMWNA is not the same as BMW USA, though might be located in the same place.


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## Shades (Sep 24, 2002)

virtualrain said:


> Are you sure about this? How do you know?
> 
> I was under the impression that BMW Canada (like most multi-national subsidiaries) is an indpendent organization designed to deal with the unique business laws and tax requirements, etc. related to the nation in question.
> 
> Evidence in terms of products would also indicate that BMW Canada is not related to BMWNA since Canada has always enjoyed the full range of products and options like the Europeans but unlike the US.


BMW Canada is a seperate company in terms of what they are able to order and the fact that they are the importer, but they are run and overseen by BMWNA.I know because i have a friend who works for BMW.Its know secret ,next time you go to your dealer ask the manager of your dealership.Tom Purves the President of BMWNA comes up to Canada all the time.The only reason that Canada gets to order the full range of products is because Canada is a much smaller market.This is why the individual program has not been officially offered in the US .BMWNA has felt that there are to many dealers in the US to run the program properly.Customers in the US have been able to order some individual options, but they have to find the right dealer who is willing to try to get BMWNA to order what they want.


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## E91 (Aug 26, 2005)

virtualrain said:


> With the USD/CAD exchange rate being as favorable as it is, I got to wondering if it was possible and practical for a Canadian to buy a BMW from a US dealer and bring it back to Canada. The difference in MSRP between comparibly equipped cars would seem to make it very attractive, particularly for higher end products. According to www.riv.ca, there is a process to it but it sounds manageable.
> 
> My questions are:
> - Will a US dealer sell to someone out of state/country?
> ...


Thanks for posting your question. I have been looking into the possibility of bringing a US-spec 325xi Touring into Canada for the past few months and can share what I have learned so far.

1) The US-spec car is better equipped than the corresponding Canadian-spec vehicle and has more options. Based on the current USD/CAD exchange rate (1.14), I have estimated the landed cost in Canada of a really well equipped 325xiT from the US would be approximately $6,000 CAD cheaper than the comparable model bought from a Canadian dealership. This includes import fees, 6.1% duty, GST and PST and metric conversion. When comparing the respective European Delivery programs the difference is closer to $10,000CAD.

2) Last October I asked BMWNA about the feasibility of a Canadian buying from a US dealer. Here is their response: 
- "The warranty follows the car. You would have warranty coverage in Canada if you bought in US."
- "Maintenance plan does not transfer from US to Canada. Any maintenance work would have to be done in US."
- "Roadside Assistance follows vehicle but you would have to call US number if you needed roadside assistance."
- "Whether the car is bought in your name or company name it would still need to be registered in US if you buy in US."

3) A month ago the BMWNA European Delivery department told me that a purchaser has to have a US Social Security Number and US driver's license for their order to be accepted.

4) I was recently told by a couple of US dealers that they can't / won't sell to a Canadian buyer because a) they would forfeit "added value" money from BMWNA and b) a dealer who sells a vehicle that is not initially titled in the US is automatically placed on an internal BMWNA audit list.

I would be glad to know if anyone else has more information or insight into this question.


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## beewang (Dec 18, 2001)

Sounds like a great way for a US residence to make a few bucks to make the title transfer for a Candian


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## E91 (Aug 26, 2005)

*US-Canada Gap Analysis for the E91*



beewang said:


> Sounds like a great way for a US resident to make a few bucks to make the title transfer for a Canadian


Hey beewang, maybe there are some Canadians out there who would seriously consider your idea! 

The attached table compares BMW NA's options and pricing with those offered by BMW Canada for the 2006 325xi Touring. Similar results apply to the E90 sedan. It also includes the estimated cost to bring the vehicle into Canada. All prices, policies and fees are accurate to the best of my knowledge as of the date of this posting. To show the differences in the available options, the evaluated E91 is almost fully equipped. The savings would be less for a typical car with fewer options.

In summary, someone who is eligible for the BMW NA European Delivery program could bring the E91 into Canada (via the US) for around $10,000 CAD cheaper than another person who goes for the BMW Canada European Delivery program. For someone who purchases the E91 directly from a BMW NA dealer and imports it into Canada, the cost would be approximately $5,500 less than if it was bought from a BMW Canada dealer.

The current pricing difference is due to many factors including:
- Lower USD / CAD exchange rate: 1.14 on February 3, 2006.
- Respective market conditions: lower MSRP set by BMW NA.
- European Delivery: BMW NA's program is much more generous.
- Dealer competition: many US dealers will quote a nominal discount of 5% to 7% off BMW NA MSRP, but Canadian dealers typically only extend 1% to 2% off Canadian MSRP.

BMW US-spec E90/E91 models are eligible for import into Canada. The process is easy, inexpensive and well-documented:
http://www.riv.ca/english/html/how_to_import.html
http://www.mr2.com/TEXT/Import.html

However, as discussed earlier in this thread, it is a problem for a non-US resident to purchase a vehicle from BMW NA. If this hurdle can be overcome, it is easy for non-residents to register their cars in certain states (such as VT). Other states (such as NH) have reduced or eliminated sales tax on new vehicles, so it may be possible to reduce the initial registration costs before exporting to Canada.

Obviously BMW wants to maintain fairly stable pricing in each market, so I wonder just how large a pricing gap needs to develop before they will take action.

Sorry for the long post - there that proves I'm a Canadian!


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## virtualrain (Dec 29, 2001)

This is great research... So it's really only possible if you have a friend in the US... If this is the case, how would it work? What would they need to do? Can your US friend, buy the car and you go on the Euro delivery program? Are all the duties and taxes the same even if you are importing a used vs. new vehicle?


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## 3s-a-charm (Feb 5, 2006)

From what I've heard, only the purchaser of the vehicle can pick up for ED as they will ask for your passport to match up.

That being said, you could have a friend or liason buy a car in the US, do the ED on it, ship it back and you go pick it up. Good way for the "buddy" to get an expense-paid trip to the BMW factory. It would have to be a VERY trusting relationship, though!


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## Robert A (May 18, 2003)

ED does require a US passport, so I think you're SOL on that one.



virtualrain said:


> With the USD/CAD exchange rate being as favorable as it is, I got to wondering if it was possible and practical for a Canadian to buy a BMW from a US dealer and bring it back to Canada. The difference in MSRP between comparibly equipped cars would seem to make it very attractive, particularly for higher end products. According to www.riv.ca, there is a process to it but it sounds manageable.
> 
> My questions are:
> - Will a US dealer sell to someone out of state/country?
> ...


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## Jon Shafer (Dec 15, 2001)

At the request of member "E91", I have deleted the attached Adobe .pdf file from post #20 above, and will attached an updated file to this post here:


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## LDV330i (May 24, 2003)

Robert A said:


> ED does require a US passport, so I think you're SOL on that one.


That is not correct. It requires that you be a US resident which is different. I know. I am non-US passport holder and had no problems doing ED.


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## virtualrain (Dec 29, 2001)

LVD330i... What does US residency mean in this context? How do you prove that and at what point in the process? Can you somehow use a friend for that part?


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## LDV330i (May 24, 2003)

virtualrain said:


> LVD330i... What does US residency mean in this context? How do you prove that and at what point in the process? Can you somehow use a friend for that part?


The easiest definition would be that you are legally allowed to live in the US and work. People that pass this test are US passport holders, greencard holders, and foreign nationals working in the US that are holders of a work visa (such an H-1). Documentation to prove that will have to be submitted at the time you place your ED to order so that BMWNA can verify that you qualify for the program.

You cannot have a stand in to qualify for the program because the qualifying person has to be the person who will hold title to the car and the one picking up in Munich.


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## jmw (Jul 11, 2007)

I recently bought an Infiniti FX 45 in Las Vegas and brought it back to Alberta. Couple of thoughts that should also apply to BMWs.

First - make sure you buy in a state that does not charge sales tax (since you'll have to pay sales tax anyway when you hit the border). In Nevada, for example, I did not register my FX 45, and did not have to pay sales tax since I was taking the car out of state. Rather, they gave me a "drive off" permit (requires you to take the car out of the state in 15 days). I first registered it in Alberta. I spoke to a couple of highway patrols and DMVs (such as Calif) and they have no issue with you driving through their states without registration/license plates so long as you have the documents of sale.

Many US purchasers buy out of state and import into another state for first registration (Nevada to California is a good example). So there is no reason why a dealer would require you to register when you buy, forcing you to pay 2X for registration. (hence the drive off permit)

Don't know about any requirement that you be a "US" resident for BMW. Certainly wasn't a problem with infiniti. Sounds like smoke, probably to address complaints from Canadian dealers about undercutting their prices. I'll check it out since I'll be buying an X5 for the spouse. I don't know how they can refuse to sell.

If the vehicle is made in North America, then no customs duties apply. If manufactured outside of NA, then a 6% duty applies. Anyone know where the X5 is manufactured?

Assuming that you first register the vehicle in Canada (at least in Alberta), then only the federal car inspection (i.e., daytime running headlights) rule applies. Thus, you don't need to go through the headache and cost of a provincial vehicle inspection.

One issue is financing/leases. Double check with BMW to see if the vehicle can leave the US for Canada under the financing/lease documents. If BMWNA is the lessor in both USA and Canada, this may not be a problem from their end. However, I think under Canadian law you may not be able to register in Canada a vehicle subject to a US lease. [Bought my FX 45 for cash so did not have to face this issue]. Alternatively, if you want to finance, you might consider lining up a loan in advance from a Canadian bank.

Hope this helps.

Again, anyone know where BMW builds the X5?


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## jmw (Jul 11, 2007)

Further note - someone above said the instrument panel had to be changed to show kilometers as the "primary" method for Quebec. If so, this is a Quebec rule and not a federal or Alberta rule.


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## jmw (Jul 11, 2007)

Just found out in this site that the X5 is made in Spartainburg, SC. Thus, no customs duties when importing an X5 into Canada. I anticipate I'll save about CDN $17,500 in purchasing the vehicle in the U.S.


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## virtualrain (Dec 29, 2001)

jmw said:


> Further note - someone above said the instrument panel had to be changed to show kilometers as the "primary" method for Quebec. If so, this is a Quebec rule and not a federal or Alberta rule.


Thanks for the insights. With the dollar close to par, it's rediculous to pay BMW Canada prices for cars in Canada. I really need to figure out a scheme to order ED through BMWNA and then bring it back to Canada. That's going to be tough.

The X5 is made in BMW's South Carolina plant along with the Z4.

Also, Oregon is another US state without sales tax AFAIK.


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## ChrisTO (Jan 24, 2002)

VirtualRain...

I too am debating the purchase of a new car south of the border. The biggest issue is finding a dealer willing to sell to a Canadian and willing to help you with some of the paper work. (based on RIV there are some forms you will need from them)

And gotta love NAFTA - no duty for the X5 and Z4 so only GST+PST which you have to pay regardless if purchased here or in the US. I also understand you don't pay the US State tax (as someone stated above).

So only issue is warranty claims. BMW Canada can be mean about it and not honour it. I know Subaru has made it difficult now where the owner has to pay for the warranty work upfront and ask for the money back from Subaru in the US. But with cost savings of $10k+ how much warranty work can happen in the first 4 years of ownership? $5K at most I would think.


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## Saintor (Dec 14, 2002)

A 335i is 10000$CAD cheap in USA than in Canada. 51795$ vs 417XX$ w/exchange rate.


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## Robert A (May 18, 2003)

It used to be the reverse, and I suspect that BMWCA and BMWNA have agreements in force to prevent cross-border deals. Otherwise, all the Vancouverites would ditch their local dealers and head down to Seattle.

It's quite possible that BMWCA will not honor a warranty on a US car purchased by a Canadian citizen, unless the car is a resale.



Saintor said:


> A 335i is 10000$CAD cheap in USA than in Canada. 51795$ vs 417XX$ w/exchange rate.


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## virtualrain (Dec 29, 2001)

The warranty situation needs further exploration. I'm almost certain that if you buy a vehicle in one country and move to the other, the warranty would be supported... perhaps you could just use this story to get your warranty setup in Canada after buying in the US? I think the same applies to anyone travelling outside their country... warranty coverage is provided anywhere regardless of where the car is from. It would be a major headache for them to keep track of legitimate vs. non-legitimate warranty situations. Surely some loop hole could be exploited.

Even if you can only get warranty coverage if it's a resale, how do they know that? Can you just sell it to your wife for $1 to have it be considered a resale?

Finally, if you can't get warranty coverage in Canada no matter what you do... just save up a few issues and spend a day in the US getting your car fixed ever once in awhile.

And as someone pointed out... is a warranty worth $10K?


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## Robert A (May 18, 2003)

Don't know the answer here, but a few years ago the exchange rate was reversed: BMWs in Canada were cheaper than those sold in the U.S AND you could get more desireable options.

We who reside in the U.S. would have loved to get our cars in Canada except for one thing: The U.S. Customs Service would not allow us to physically import a car until BMW of Canada provided a certification that their cars met U.S. standards. BMWCA would happily oblige if the car was a resale, but I have no idea what was considered a legitimate resale.

The other component is the loss of Full Maintenance, which probably wasn't horrendous, but it was a factor in the equation. Finally, you couldn't lease or finance it, and, to buy a new car in Canada you had to show a Canadian DL and proof of Canadian insurance, meaning that you also had to have a Canadian address.

In the end, it just wasn't worth it, especially since we could fly cheaply to Munich in the aftermath of 9/11 and save 7% on our cars anyway.

It's really hard to beat the system when it comes to cars.



virtualrain said:


> The warranty situation needs further exploration. I'm almost certain that if buy a vehicle in one country and move to the other, the warranty would be supported... perhaps you could just use this story to get your warranty setup in Canada after buying in the US?
> 
> Even if you can only get warranty coverage if it's a resale, how do they know that? Can you just sell it to your wife for $1 to have it be considered a resale?


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## Robert A (May 18, 2003)

That comes into play when you want to convert an EU spec car to US standards, which was very popular in the mid-80s. The warranty WAS worth $10k, because a converted car not only lost its warranty, it also lost a good chunk of resale value because the conversion process was uneven and inconsistent, causing untold risk that used car buyers factored into their purchase decisions. This of course applies to trans-Atlantic cars. Canadian cars just need a speedo change.

[QUOTE

And as someone pointed out... is a warranty worth $10K?[/QUOTE]


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## virtualrain (Dec 29, 2001)

Saintor said:


> A 335i is 10000$CAD cheap in USA than in Canada. 51795$ vs 417XX$ w/exchange rate.


The way I look at it, I could probably buy an M3 in the US for the price of a 335i in Canada.


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## virtualrain (Dec 29, 2001)

Robert A said:


> Don't know the answer here, but a few years ago the exchange rate was reversed: BMWs in Canada were cheaper than those sold in the U.S AND you could get more desireable options.
> 
> We who reside in the U.S. would have loved to get our cars in Canada except for one thing: The U.S. Customs Service would not allow us to physically import a car until BMW of Canada provided a certification that their cars met U.S. standards. BMWCA would happily oblige if the car was a resale, but I have no idea what was considered a legitimate resale.
> 
> ...


The only outstanding issue with importing a BMW from the US to Canada is the warranty.

The process for importing is otherwise well documented and understood.... www.riv.ca.

As someone else pointed out, leasing and financing is not possible, so anyone buying a BMW this way will have to have access to a line of credit or cash on hand.

Whether it's worth it or not, will depend on everyone's specific situation. It may not be worth it for you, but it may be worth it to me.


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## Bob Clevenger (Dec 17, 2004)

To my Western Canadian brethren:
This is just an idea, but it might just work.
1. Visit a Washington State BMW dealer and pick out the model you like.
2. Rent a cheap apartment in Washington for a month.
3. Go to Washington DMV and get a Washington Drivers Licence --- you may have to forfeit your BC Licence. You are now a resident of Washington State.
4. Go to your Washington BMW dealer and buy your new BMW.
5. Spend a week or two enjoying the sights in beautiful Washington and Oregon (or drive back home to BC and go to work for a week or two).
6. Go to BC DMV and tell them that your new job in the US didn't work out and you are moving back to Canada. Forfeit your Washington Drivers Licence and get a replacement BC Drivers Licence.

Technically the car was purchased in the US by a US-resident Canadian citizen who then moved back to Canada.

The same idea should work all across the border, East to West.


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