A Canadian's Guide to Buying a Used Car in California & Driving it Home
So, you’ve found it. The perfect car. It’s got the right mileage, the right specs, it’s even the right colour. The only problem? It’s in California, & you’re in Canada. Your dream of cruising down the Pacific Coast Highway before heading north seems both amazing & DAUNTING.
Honestly, buying a used car in the U.S. & bringing it home to Canada is totally doable, but it’s a process with a lot of steps. I’ve waded through the bureaucracy, the paperwork, & the cross-border quirks to put together this guide. Think of me as your friendly navigator for this journey. We’re going to cover everything from making sure the car can even be imported to the nitty-gritty of taxes & license plates.
It might seem like a lot, but if you do your homework, you can save a ton of money or get a vehicle that’s hard to find up north. Let’s get into it.
Step 1: Before You Even Think About Buying - The Homework Phase
This is the MOST important part. Seriously. Skipping this step can lead to a world of hurt, like finding out the car you just bought can't actually be registered in Canada. That would be… not ideal.
Check Vehicle Admissibility with RIV
First things first, you need to meet your new best friend: the Registrar of Imported Vehicles, or RIV. Transport Canada contracts the RIV to manage the importation of vehicles from the U.S. Their website is your bible.
Before you fall in love with a specific car, you need to check the RIV List of Admissible Vehicles. This list will tell you if the make, model, & year of the car you’re eyeing is even allowed into Canada. Some vehicles are outright inadmissible for various reasons, often related to safety standards. A big one to watch out for is modified vehicles. If the car has been significantly altered from its original factory state—think lift kits, engine swaps, or van-to-camper conversions—it likely won't be allowed in.
You'll also need to check for any recalls on the vehicle. If there are outstanding recalls, they must be cleared before the vehicle can pass the RIV inspection in Canada. This can be a major headache, so run a VIN check for recalls beforehand.
Understand the Costs - It's More Than Just the Sticker Price
That great deal you see on Craigslist or Autotrader is just the starting point. You need to budget for a bunch of other expenses:
- Currency Exchange: The US-to-Canadian dollar exchange rate can sting. Factor this in from the get-go.
- Taxes & Duties: You'll be paying Canadian taxes. At the border, you'll pay GST on the Canadian dollar value of the car. Depending on where the vehicle was manufactured, you might also have to pay a 6.1% duty. The good news is that under the Canada-United States-Mexico Agreement (CUSMA), if the car was assembled in North America (the VIN starts with a 1, 2, 4, or 5), you're exempt from this duty.
- Air Conditioning Tax: If the vehicle has air conditioning, there's a $100 excise tax.
- RIV Fee: The current RIV fee is around $325 + GST/HST. This covers the final inspection process in Canada.
- Provincial Sales Tax (PST/QST/HST): Once you get back to your home province, you'll have to pay the provincial portion of the sales tax when you register the vehicle.
- Inspection Fees: There’s the RIV inspection fee (mentioned above) & likely a separate provincial safety inspection fee.
- Travel & Accommodation: Don't forget the cost of your flight to California & any hotels you might need.
- Temporary Plates & Insurance: You'll need to sort this out to drive the car legally. More on that in a bit.
Add all this up. Is that California car still a good deal? Often, it is, but it pays to be realistic about the total cost.
Step 2: The California Purchase - Navigating the Golden State's Rules
Okay, you've done your homework, the car is admissible, & the numbers work. Now for the fun part: buying the car. California has its own way of doing things, especially for out-of-state buyers.
Private Seller vs. Dealer
You have two main options: buying from a private individual or a licensed dealer.
- Private Seller: This is often where you'll find the best deals. The key here is getting the title, also known as the Certificate of Title or "pink slip." This is the proof of ownership. Make SURE the seller signs the title over to you properly. You'll also want a detailed bill of sale that includes the vehicle's VIN, the purchase price, the date, & the names & signatures of both you & the seller.
- Dealer: Buying from a dealer can be simpler as they handle paperwork regularly. However, they can be more expensive, & you need to be very clear about your intention to export the car immediately.
The Sales Tax Conundrum
This is a big one. California has a state sales tax (plus local taxes) that can be close to 10%. You do NOT want to pay this if you don't have to. Here’s the deal:
If you buy a car in California & take possession of it there to drive it, you are generally expected to pay California sales tax. HOWEVER, as a non-resident who is immediately exporting the vehicle, you can often get an exemption.
The key is to not register the vehicle in California. Your goal is to get it out of the state as quickly as possible. If you buy from a dealer, they might be able to handle the paperwork to show it's for immediate export, especially if they arrange for a "carrier" to move it (though that doesn't work for our plan of driving it home).
When buying privately, the cleanest way to handle this is by using a special permit to move the car.
Getting Legal for the Drive Home: The One-Trip Permit
So, how do you drive a car with no plates? In California, the plates generally stay with the car when it's sold, but you can't use the old owner's registration for long. The best solution for your situation is a One-Trip Permit (REG 402T).
This permit allows you to move an unregistered vehicle for one continuous trip from a point within California to a place outside the state. You can get this from the California DMV. It's a simple piece of paper you display prominently in your windshield. This is your golden ticket. It proves you're in the process of moving the car out of California, which is crucial for both law enforcement & for avoiding that pesky sales tax.
Insurance: Don't Leave Home Without It
Before you put the key in the ignition, you need to have insurance. Your Canadian insurance provider may be able to issue a temporary binder for the new vehicle. Call them well in advance, explain the situation, & provide them with the VIN. They are used to this process. They can typically fax or email you proof of insurance that you can show if needed. Driving without insurance is a HUGE risk & illegal.
While you're figuring out the logistics in California, you might need a place to stash your new ride for a day or two. If you're in a busy city like LA or San Francisco, finding a secure spot can be a pain. This is where a service like Prked can be a lifesaver. You can use it to rent a private driveway or garage from a local homeowner for a short period. It's a pretty cool way to find a safe, affordable spot to park while you sort out your one-trip permit & insurance.
Step 3: The Export Process - Telling the U.S. You're Leaving
You can't just drive up to the border & say "I'm taking this car to Canada!" The U.S. government wants to know about it first. This is a critical step that many people miss.
The 72-Hour Rule & AES Filing
For any used, self-propelled vehicle being exported from the U.S., you MUST file electronic export information through the Automated Export System (AES). This has to be done at least 72 hours before you attempt to cross the border. The old exemption for vehicles going to Canada is long gone.
Here's how it works:
- Filing: You or an authorized agent submits the vehicle's information (VIN, value, seller/buyer details, etc.) to the AES.
- ITN: Once the submission is accepted, you get an Internal Transaction Number (ITN). This number is your proof of filing.
- Notification: You then need to provide the ITN & copies of your documents (title, bill of sale) to the specific U.S. Customs & Border Protection (CBP) port you plan to cross at.
This process can be a bit intimidating. While you can technically file yourself through the AESDirect portal, it's not the most user-friendly system for a one-time user. Many people opt to use a customs broker or a specialized AES filing service. For a fee (usually under $100), they will handle the filing for you, get the ITN, & often even forward the documents to the border port on your behalf. Given the potential for penalties & delays if you mess this up, it's money well spent.
Remember, the 72-hour clock starts when the CBP port accepts your documentation, not when you get the ITN. So, plan ahead! Give yourself at least 4-5 business days before your planned crossing date to get this all sorted.
Step 4: The Border Crossing - Importing into Canada
You’ve got your car, your one-trip permit, your insurance, & your ITN. You’ve enjoyed some California sun. Now it’s time for the final boss: the border.
At U.S. Customs
First, you'll stop at the U.S. Customs office. You need to go inside & formally export your vehicle. The officer will check your title, bill of sale, & your ITN to make sure everything is in order. They’ll process the export & stamp your title, indicating the vehicle has been exported from the United States.
At Canada Border Services Agency (CBSA)
Next, you'll drive to the Canadian side. Here’s where you officially import the car. Be prepared to show all your documents again. The key document here is the Vehicle Import Form – Form 1. You can fill this out online on the RIV website before you get to the border & print it out to save time.
The CBSA officer will review your paperwork, calculate the taxes you owe (GST & the AC tax), & collect payment. They will stamp your Form 1, & this is a VERY important document. Don't lose it!
You now have a conditionally imported vehicle. You can drive it home, but you're not done yet.
Step 5: Making it Official in Canada - RIV & Provincial Registration
You made it across the border! The long drive home is a great time to get better acquainted with your new car. But the process isn't quite finished.
The RIV Inspection
CBSA will have forwarded your information to the RIV. The RIV will then email or mail you an inspection form. You have 45 days to complete the RIV inspection.
This inspection ensures your vehicle meets Canadian safety standards. Common modifications needed include adding daytime running lights (though most modern cars have a setting for this) or checking bumper standards. The inspection is done at a designated RIV inspection centre, which is usually a local Canadian Tire.
You’ll need to bring your stamped Form 1 & the RIV inspection form. Once your vehicle passes, the inspection centre will stamp your form again. They will then notify RIV, who will send you a Canadian Inspection sticker to affix to the inside of the driver's side door. This sticker is proof that your car is now compliant with Canadian standards.
Provincial Registration & Safety
With your stamped RIV inspection form in hand, you can now head to your provincial licensing office. Here, you'll finally register the car in your name. You'll need to show all your paperwork one last time: the stamped US title, the bill of sale, the stamped Form 1, & the RIV inspection form.
You'll pay the provincial portion of the sales tax (PST/QST/HST) at this time. Most provinces will also require a separate provincial safety inspection, even though you just did the RIV one. This is just a final check to ensure everything is roadworthy according to provincial rules.
Once that's done, you'll get your Canadian license plates & registration. And that's it! The car is officially yours, fully imported & registered in Canada.
This whole adventure can be a fantastic way to get the car you want & have an epic road trip. And hey, now that you've vacated your old parking spot or driveway, you could consider listing it on Prked. It's a simple way to make some passive income from that empty space, which could help you recoup some of the costs of your California car-buying journey. It’s a pretty cool way to turn an unused slab of pavement into a side hustle.
Hope this was helpful & gives you the confidence to go for it. It's a journey, for sure, but with a bit of planning, it's one with a great reward at the end. Let me know what you think & happy driving
