Moving back to Canada with US car loan

This forum deals with all aspects of immigration to the United States, including visa types, general immigration issues, and U.S. immigration topics.

Moderator: Jim Eiss

Post Reply
mikem
Posts: 48
Joined: Sun May 20, 2007 12:42 pm

Moving back to Canada with US car loan

Post by mikem » Sun Aug 26, 2007 2:51 pm

Not really immigration related, but I thought someone here might have some experience with this...

I am a Canadian in the US on an H1. I'm considering moving back to Canada and I'm not sure what to do with my car. I bought a new car down here and would like to take it back to Canada, but it's financed and I don't hold the title. Of course you need the title to get it registered in Canada, but I can't get the title without paying off the note. I don't have 30k sitting around, so I'd need to re-fi in Canada... but will a Canadian bank finance a car that's not registered in Canada?? What do other people do in this sort of a situation?

Thanks for any help you guys can give.

cw
Posts: 13
Joined: Sat Dec 01, 2007 1:36 am

Post by cw » Wed Dec 05, 2007 4:41 pm

We went through the same thing a few years ago.

When we registered our car in Canada, they just noted the lien holder (if I remember the name correctly) on the title certificate, and we just continued to pay the original US car loan company as we would have done in US. But we did have to go through inspection and immission test first.

MaggieA
Posts: 101
Joined: Sun Oct 31, 2004 4:06 pm

Post by MaggieA » Wed Dec 05, 2007 9:18 pm

I did the same thing in reverse (moved to US with Canadian car and Canadian car loan). In fact we had two vehicles both with manufacturer financing - one Ford, one Chrysler. Both loan agreements stated that you can't relocate the vehicle out of province - let alone out of the country - except by permission of the lender. We had to get those permission letters and they were needed to register and title the cars in the US. (The state sent the title documents to the Canadian lenders). The lenders required to continue taking payments from our Canadian bank account.

While US-to-Canada is doubtless different from Canada-to-US I suspect the requirement for lender permission is likely a common factor. Check your loan document for a condition like this.

mikem
Posts: 48
Joined: Sun May 20, 2007 12:42 pm

Post by mikem » Sun Dec 09, 2007 10:42 pm

Thanks for the info. My car is a Nissan, and NMAC says they will arrange permission for me to export. I'm thinking about trading it in for a new Ford before I move, but every time I call Ford, they give me a different answer (sometimes they say I need to pay off the loan first, other times they tell me that they can arrange for export as long as I meet certain requirements).

MaggieA
Posts: 101
Joined: Sun Oct 31, 2004 4:06 pm

Post by MaggieA » Mon Dec 10, 2007 8:08 am

Be cautious. We had no problem with Chrysler, but Ford Credit Canada was initially adamant that we had to pay off our loan. Luckily, my move was a corporate relocation. When I got stuck, a call from the auto shipper's legal troubleshooter persuaded Ford Credit to be more helpful. I doubt I would have prevailed without that backup.

In general, it's such a hassle relocating a vehicle across the border, that if you're thinking of changing cars anyway, maybe best to get the new vehicle in Canada?

mikem
Posts: 48
Joined: Sun May 20, 2007 12:42 pm

Post by mikem » Mon Dec 10, 2007 12:00 pm

Well I figured that since cars are so much more expensive in Canada than the US, and the dollar is virtually at par, it would be a good idea to get a new one here before going back. My Nissan sells for nearly $20K more in Canada than the US, and the Ford truck I'm looking at is between $15-20K more in Canada.

nelsona
Posts: 16012
Joined: Wed Oct 27, 2004 2:33 pm
Location: Nowhere, man

Post by nelsona » Mon Dec 10, 2007 12:05 pm

I agree wioth mike. Car prices have not come down yet i ncanada, so buying one up there is not the best.

Thena again, buying a new US car is not the best financial decicion one can make in the first place, given the 30% drop in value the 1st month.
Nelsona Non grata. Non pro. Search previous posts. Happy Browsing :D

MIKE2000Z28
Posts: 50
Joined: Wed Jan 16, 2008 11:49 am
Location: Quebec, Canada

Post by MIKE2000Z28 » Wed Jan 16, 2008 12:14 pm

Well when i moved here 3 years ago, i had a loan on my camaro. I don't get how you can still pay the loan when they need the title and to get the title you need to pay off the loan because Canada Takes the title and you get a registration card, at least thats how it is in Quebec. I was forced to pay the loan in full, im pretty sure you can't register the car without paying for the car in full at the border.

Greg
Posts: 106
Joined: Tue Nov 09, 2004 3:38 pm

Post by Greg » Tue Feb 12, 2008 1:47 pm

I’m having zero luck trying to work with Toyota Canada. We have a lease and are moving to the US. We have told them we are keeping the bank account in Canada open so they can still take there payments, but still they say we can’t take it.

I have a few months left before we do move and I’m going to give it one more shot before we leave. Toyota basically says return it to the dealer, they will sell it at whole sale which creates a good ding on your credit report and they will send you the bill for the difference. After they told me they where going to automatically ruin my credit in Canada, I told them what incentive is that for me paying the bill they send me?.

Post Reply