A closer look at importing a car from Europe to Canada

Importing cars to Canada from Europe can be an exciting but complex process. Read on to learn each step, from shipping logistics to navigating import regulations. Plus, discover how to make the most of your money using Wise’s efficient and transparent mid-market exchange rates.

Is It Possible To Import A Car From The EU To Canada?

While importing a car from the EU to Canada is possible, it can be done only under certain circumstances.

According to the Government of Canada, most vehicles manufactured for sale in countries other than the United States do not comply with Motor Vehicle Safety Act requirements, and therefore cannot be imported into Canada.¹

There are a few circumstances where the Canadian government will allow you to import cars from Europe to Canada:

Circumstances For Import

Canadian Compliant

You can import a car if it meets Canadian standards and was originally sold as new in Canada before being exported or bought through a foreign manufacturer’s delivery program.¹

15 Years Or Older

Vehicles that are 15 years old or more, or buses made before January 1, 1971, can be imported as they are no longer regulated under the Motor Vehicle Safety Act (MVSA).¹

Temporary Residency/Visit

If you're just visiting, you can bring your vehicle into Canada temporarily without needing to meet the MVSA requirements, according to section 7(1)(b) of the Motor Vehicle Safety Act (MVSA).¹

Returning Canadian Or US-Specification Vehicle

If the vehicle was originally bought in the US or Canada and meets Canadian or US standards, it can be brought back to Canada. US vehicles need to comply with RIV, while Canadian vehicles with a new owner need pre-authorization from Transport Canada.²

Best Practices For Successful Import

• Contact Transport Canada: If you believe your car fits the extenuating circumstances given by the Government of Canada, contact Transport Canada at 1-800-333-0371 or mvs-sa@tc.gc.ca before importing to be sure.¹
• Check the Registrar of Imported Vehicles (RIV): You can find comprehensive information for every stage of the vehicle importation process at the website of the RIV.³
• Read Memorandum D19-12-1: This is the memorandum on the importation of vehicles from the Government of Canada. It contains the Motor Vehicle Safety Act, referenced in some circumstances for import.⁴

Breaking Down The Costs Of Importing A European Car To Canada

1. Import Duties and Taxes:
   a. RIV Registration Fees: $100-$325 + border crossing fees⁵
   b. Goods and Services Tax (GST): variable⁶
2. Vehicle Modification and Compliance: depends on province⁶
3. Registration and Licensing: Varies by province ($84.45⁷-$120⁸ for registration; $0-$100 for plates and stickers⁹)
4. Insurance: Dependent on various factors, generally higher for imports.
5. Currency Exchange Fees: Significant savings with Wise’s mid-market rates
6. Purchase Price: Depends on new or used status and specific model.
7. Shipping Costs:
   a. Roll On Roll Off (RORO) Shipping: £38/€44/$49 per cubic metre+¹⁰
   b. Container Shipping: $1,200+¹⁰

Costs In Canada For Importing A Car From Europe

Import Duties And Taxes

These are the applicable duties and taxes for importing from the EU:

• RIV Registration Fees: $100-$325 + border crossing fees⁵
• Goods and Services Tax (GST): variable, based on current GST rate, sale price of the vehicle(converted to CAD), state or local sales tax paid, excise taxes and or duties at border⁶

Vehicle Modification And Compliance Costs

As per the RIV, some provinces and territories require additional testing, licensing, permits, etc. Do your research to see whether your province is more or less strict about additional requirements.⁶

Registration And Licensing

Registration and licensing costs vary widely between provinces:

• Registration Fee: This fee is province-dependent. For instance, in Southern Ontario, registering a vehicle costs around $120 per year, ⁸ while in Alberta, it is roughly $84.45 annually.⁷
• License Plate and Sticker Fees: Additional expenses for acquiring new plates and stickers can range from $18 to $120. Ontario has recently eliminated most of those fees.⁹

Insurance

Insurance costs are influenced by factors such as the vehicle’s make, model, year, and driving history. Rates for imported vehicles might be higher than for domestic models due to differences in repair costs and parts availability.

Currency Exchange Fees

When paying for the car purchase, shipping, and other expenses in euros or other European currencies, you’ll encounter currency exchange fees. Banks often have high exchange rates and hidden fees, while Wise ensures you avoid hidden fees and get a good exchange rate.

Costs To Pay Before The Car Reaches Canada From Europe

Purchase Price

If you’re buying a used car, ensure you know its market value by checking online listings and guides like mobile.de. For new cars, the price is generally fixed, but it’s still advisable to compare rates from different dealers.

Shipping Costs

There are two primary shipping options:

1. Roll On/Roll Off (RORO) Shipping: This method involves driving the car onto a ship designed for vehicle transport. Leading provider International Vehicle Shipping Services (IVSS) offers RORO shipping rates from Europe to Canada at £38/€44/$49 per cubic metre, not counting port fees and clearing costs.¹⁰
2. Container Shipping: This method places the car inside a container for added security, often used for vintage or high-value vehicles. IVSS’s container shipping costs start at $1,200 for a 20ft (ca. 6 m) container and $1,400 for a 40ft (ca. 12 m) container. These estimates exclude added local charges.¹⁰

Make The Most Of Your Money With Wise

Importing a car involves numerous expenses in various foreign currencies. Wise can help alleviate some of this stress by providing you with the mid-market exchange rate.

What is the mid-market rate? : This is the rate at which banks trade currencies among themselves. Wise leverages this rate to ensure you get the best deal when converting money.

With Wise, you can hold and manage up to 40 different currencies, including the Canadian Dollar, Euro, and US Dollar, making it easy to handle various stages of your car import process.

Additionally, the Wise card allows you to easily make international payments, whether online or in person, which is useful for paying import-related costs and making purchases while traveling in other regions.

Leveraging Wise’s mid-market exchange rate and financial tools can lead to significant savings and a smoother process when importing your vehicle.

Final Thoughts On Importing A Car From The EU To Canada

Importing a car from Europe to Canada is a multifaceted process that, when approached with thorough research and careful financial planning, can yield rewarding results. By anticipating each step and utilizing cost-effective solutions, you can transform this complex journey into a seamless and financially sound experience.

Don’t forget to utilize Wise for help with all your currency exchange needs!

About the author:
	Piyush is an expert in finance topics for the Canadian market, covering everything you need to live without borders. He creates high quality content to help you make the best cross-border decisions. You can read more useful articles on his author profile.

Sources verified on 4 September 2024