How to buy out of province car from Quebec
#1
How to buy out of province car from Quebec
Hi everyone, I just bought a 2012 Acura TL 6M and while doing so I ran into a lot of questions such as finance, taxes, who pays what. I couldn't find a reliable source except SAAQ and the revenue of quebec themselves.
So for anyone who is thinking about it - I wanted to help out the community.
FYI: for financing:
- if you are planning on buying private (individual) and you lack money. The bank will put you on Personal Loan 5 years MAX. This of course varies from bank to bank. Even if they announce "car loan" they will still process it as a personal loan when you meet with them.
ASSUMING YOU HAVE MADE AN AGREEMENT - Here are the documents you will need and steps
if the car was bought at an Ontario Dealer, buyer would have needed to pay RST (retail sales tax) of 13%. Then you will still need to pay the QST.
Revenu Québec - Purchase of a Used Road Vehicle from a Dealer
Hope this post helps anyone in QC looking for a deal out of town.
So for anyone who is thinking about it - I wanted to help out the community.
FYI: for financing:
- if you are planning on buying private (individual) and you lack money. The bank will put you on Personal Loan 5 years MAX. This of course varies from bank to bank. Even if they announce "car loan" they will still process it as a personal loan when you meet with them.
ASSUMING YOU HAVE MADE AN AGREEMENT - Here are the documents you will need and steps
- Take the VIN number of the new car, and go shop for insurance. Tell the insurer what day you will be picking up the car. The insurrance company will need VIN + Km + Model/Year + how you finance if you financed it.
- Seller will need to go get the SAFETY certification in their respective province HOWEVER it is only for peace of mind. It will not be valid at the SAAQ.
- When meeting with seller - go to the Service Ontario for a 10 day temp plate. (it will cost 23$). They will need the seller's registration (green form), the insurance paper, and your license. You (the buyer) will need to fill out the form with your information. (for other provinces it will be similar, ie you get a temp plate to navigate through the province). Stick the plate into the passenger side windshield, and now you can be on the road in QC.
- Make the seller draft up a Bill of Sale. The bill of sale MUST contain: seller address, buyer address, model of car completely, VIN, odometer when purchased, agreed price, and how it was exchanged (how doesnt really matter but it will be considered a sale). You need to declare the usual "buyer assumes responsibility". You both sign the document, but more importantly the seller should sign it.
- Pay the seller (bank draft is usually the choice here obviously. and its 7.50$ depending on banks)
- You will need to get a Mechanical inspection at a verified authorized mechanic by the SAAQ. You can use their tools to find one. it is 92$ tax in. They will give you 3 papers - you will need all 3.
- go to the SAAQ - present all documents: bill of sale, your license, inspection paper, insurance (optional - my guy didnt want it).
- You will only be paying PST - there is no GST. You will be paying the greater of sale price or book price depending on how old your car is. For reference about the taxes - i contacted Revenue Quebec and they directed me to here: Revenu Québec - Purchase of a Used Road Vehicle from an Individual.
- Now with your plate - enjoy the car =)
if the car was bought at an Ontario Dealer, buyer would have needed to pay RST (retail sales tax) of 13%. Then you will still need to pay the QST.
Revenu Québec - Purchase of a Used Road Vehicle from a Dealer
Hope this post helps anyone in QC looking for a deal out of town.
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technocrat (08-12-2018)
#2
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I purchased my 2016 Acura RDX - Tech from Elegance Acura in Granby, Quebec. Being from New Brunswick, our sale tax is the 15% HST. I sent them pictures of my trade-in (I keep my vehicle in mint condition) and we agreed on a trade in allowance. When I got to the dealership all the paperwork was done. It was just a matter of "sign here" and "initial this". The worst part of the whole deal was the 8 hour drive each way. (I did the 16 hour drive in one day). At the dealership I paid the Federal portion of the sales tax and when I got back home in NB I went in to register it/ get new license plates and paid the NB Provincial portion of the HST. It could not have been easier and less complicated. I would have sooner purchased my RDX at the dealership here, but there is only one Acura dealership in NB and one other in NS, so there rarely is much choice. There are approximately 15 dealerships in Quebec and I most likely will be buying my next Acura from one of them.
Buying from a private seller can be a bit more tricky. One of the main concerns one has to entertain is that there might be a lien held by some financial institution. Assume that there is a lien and ask "who has the lien on this vehicle" rather than "Is there a lien on this vehicle. I do believe that you can go online and for a fee and check to see if there is a registered lien on the vehicle you are considering buying. Buyer Beware.
Buying from a private seller can be a bit more tricky. One of the main concerns one has to entertain is that there might be a lien held by some financial institution. Assume that there is a lien and ask "who has the lien on this vehicle" rather than "Is there a lien on this vehicle. I do believe that you can go online and for a fee and check to see if there is a registered lien on the vehicle you are considering buying. Buyer Beware.
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technocrat (08-12-2018)
#3
Just to add to this thread... You can request the seller to charge only one tax (provincial) as you will be paying the federal tax to whichever province you register with. Otherwise you will need to go online and request a reimbursement for the GST portion if you paid it twice. It took about a month or so for the cheque to arrive. Also, to save even more money contact a company like Assurant and they will meet you and give your vehicle an appraisal on the spot. Which SAAQ takes the higher amount between the appraised amount and what you paid for your vehicle instead of taxing the blue book value which is always significantly higher.
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