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Car Acqusition for Expatriates

Tips for moving to Canada

by Mahmoud Fakhriddin, Account Manager, CFS

Moving from one home to another is usually not something that we look forward to, and moving from our country to another is no fun at all!

For people that are being relocated to another country by their employer, most arrangements are usually made through relocation service providers. They facilitate finding appropriate housing, schooling for the kids, and other services (legal, financial, etc.).

Almost all of the relocation needs are satisfied. However, what about vehicle needs?

Most of the Relocation companies that employers deal with, do not offer car acquisition in their relocation packages. It is a highly individualized process, and these companies already do enough work with housing. This is where there is a need to assist Corporate Transferees throughout the entire process, up until they have their new car keys. However, this process usually faces a few obstacles, which are not always easily avoidable. While our specialized service takes care of this, in this blog I will clarify some common obstacles that people getting a new car on their own in Canada may face.

Another World of business:
Omitting our American neighbour, someone from another country – who are used to their respective and local manners – might be totally lost. This distinction in mannerisms can affect a car sale. To make a sale happen, you want to trust the salesperson and be comfortable with them, especially when it involves an important investment such as a car.

Specifically, and importantly, you should be advised that in Canada, none of the advertised car prices will include sales taxes, environment taxes, or tire taxes, unless specified. On top of that, taxes vary from one province to another (Sales tax on a car in Ontario is 13%, 14.975% in Quebec). Other fees and charges – such as maintenance, tires, insurance, etc. – are also not included. In Europe (where I am from), leasing deals are different from the ones that we have here in North America. European leases aim mostly for people on vacation (short term contracts) or for those who are planning to stay longer (up to 6 months max.). Canadian leases are a more permanent option, and are for up to 5 years normally.

Finally, in Europe you only have what we call the “open end lease” while in North America, you have the choice between “open and closed end leases”.

For those who’d like to read more about these leases, I invite you to read my next blog post!

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