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Old 08-25-2013, 11:42 AM
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Retoxtony Retoxtony is offline
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Canadian guys-Ever buy a U.S. boat to flip?

Just wondering if any of my fellow Canadians have ever purchased a U.S. boat and brought it back to Canada to sell for a profit? I've been shopping around to upgrade my 205dd to a newer, bigger v-drive and i'm always surprised by the price difference between the U.S. and what i find around Alberta and Saskatchewan. Every winter my parents go to Arizona for 3-4 months so i was thinking that i should go down for a visit and do a little boat shopping while there. Judging from what i've seen, i should be able to bring back a boat and use it for a summer and still be able to sell it for more than i paid down south.

So has anyone else done this or is it more work and hassle than its worth?

As an example, Martin Motorsports in Edmonton has a 2006 Sanger V215 they want 40k for. In the U.S. i find lots of these for 25-30k. Thats quite a huge difference.
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Old 08-25-2013, 12:14 PM
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KahunaCraft KahunaCraft is offline
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Canadian guys-Ever buy a U.S. boat to flip?

I think you're better to compare private sales in your region than list prices at dealers.

1. They mark up boats to allow for trade-ins.

2. I think low volume and as a hobby, not a bad idea. The minute you start getting rich off of it, the tax man or woman will be looking for a retro-active share of your profits.

3. Shipping and coordination. Don't under estimate your costs to ship the boat, even if it is your truck being used (could be more expensive).

4. Preparation. Dealers tend to have the resources to clean up the boat and fix things quickly. This type of work shouldn't be under estimated.

5. People are people. For whatever reasons, when they know the boat is from the US, they immediately assume you've got lots of profit in the deal and will demand to save. Doesn't always happen, but does happen.

6. Dealers are dealers. They will service the boats bought at their marina or dealership first.

7. High end buyers know that they need good dealer support to avoid long repairs mid summer. They also want the history of the boat or vehicle before they buy. Knowing it was serviced. Specifically if you're thinking late year models that may have some warranty left.

8. GST, in order to register the vessel, someone will have to pay tax. If you do this in a curb-side manner, you would have to pay the taxes and wouldn't get the money back when you go to sell. If the vessel numbers are changed to Canadian numbers,

In this scenario, you could open a company... But then you'd be into a little more than a hobby. Pay taxes on the profits and carry liability insurance in the event you sell a boat as a company and something happens and and and all the other stuff that comes with running a business.

In this scenario, this would help in other ways... You could have demo days where you write down costs associated with selling the boat and shipping expenses etc... Again, more than a hobby.

As much as I've thought about the same idea...when you start running kijiji and boat trader ads...and the whack jobs waste a few of your Saturday mornings... It may not be worth it. Or - you could find a decent hobby by flipping a boat a year and learn how to find the right buyers by advertising it on TT and local Marina's.

Finally - do what makes you happy.
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  #3  
Old 08-25-2013, 12:24 PM
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sand2snow22 sand2snow22 is offline
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What's current exchange rate?
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  #4  
Old 08-25-2013, 12:30 PM
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KahunaCraft KahunaCraft is offline
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Ah, yeah the dollar factor.

You may also need some certifications for Canadian Water Ways and or Emissions on 2012 boats.
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  #5  
Old 08-25-2013, 12:47 PM
Redstorm Redstorm is offline
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I think if it were that easy everyone and their brother would be in on it. Products are far more expensive in Canada than the U.S. Automobiles, cameras etc. What does it cost to get it into Canada, register and sell. Registering might be where the catch is. Out of Country vessel/vehicle.

How does Canada prevent people from crossing the border from buying and selling in Canada? It would be an easy gold mine if it were that easy.
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  #6  
Old 08-25-2013, 12:54 PM
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Retoxtony Retoxtony is offline
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I wouldn't be doing this on a large scale or anything but i figured since i'm boat shopping anyway, and i'll probably be in Arizona this winter anyway, maybe i should try to make it work. I'm not talking about getting rich here, merely trying to offset the cost of ownership on a boat. If i can use a boat for a season in Canada and sell it for a bit more than i bought it for, i'd be pretty happy with that. Maybe roll any money i make into the next one i buy. The exchange rate has definitely slipped in the last while but i still find it cheaper to buy most stuff south of the border.

And i know my example was a dealer vs a private sale, but it was the first thing that popped up.

So far my biggest issue is when it would come time to sell the boat. I'm a busy guy so driving out to the lake for every person who wants a test drive is a pain for me.


Just an idea i've been kicking around. I see the lower prices and it gets me thinking. I guess there is lots i haven't considered.
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Old 08-25-2013, 01:02 PM
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Retoxtony Retoxtony is offline
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Quote:
Originally Posted by Redstorm View Post
I think if it were that easy everyone and their brother would be in on it. Products are far more expensive in Canada than the U.S. Automobiles, cameras etc. What does it cost to get it into Canada, register and sell. Registering might be where the catch is. Out of Country vessel/vehicle.

How does Canada prevent people from crossing the border from buying and selling in Canada? It would be an easy gold mine if it were that easy.
Bringing most stuff back from the U.S. is actually quite simple and lots of people do it. My boat, quad and sled are all originally from down south. I didnt bring them across but someone did. Registering some stuff can be a pain but people far stupider than me manage to do it. I live fairly close to border so i buy lots of stuff from there. Get it shipped to the border, drive down and cross the border, pay the duty and tax on the way back.
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  #8  
Old 08-25-2013, 01:45 PM
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KahunaCraft KahunaCraft is offline
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Not trying to discourage you. Just looking at the angles.

There are personal savings by buying out of the U.S. I'm not overly convinced the risk reward on selling/buying year over year are always going to be worth it. It's that tax hit that hurts.

When you buy a boat or a quad and you keep them for personal use. In those scenarios, you end up paying tax and its still cheaper than buying here. 100% agree and we are being charged more up here for those items and many others.

On the other side of the coin ... The Plus side...

Hunting for a boat is fun for some people. The thrill of buying a new boat (at least new to you) is always exciting. Can be stressful, but also can be a lot of fun.

You'd get to try out a lot of different boats over time. You'd probably get better at maintaining them and perhaps increasing their value by making small improvement that pay dividends.

You're working in an area where the depreciation is already gone and the risks are lower to lose money. The likeliness of losing 5k on something like that would be low, worst case you may lose a few K per year, but that's still the norm and likely less than you'd lose because you paid less in the first place. And as you say, the boat may actually depreciate, but you could still sell it and make money after all your costs.

Key is knowing the all in costs of a boat based on the distance to get it home and taxes. Finally getting good pictures of key areas. Perhaps buy a compression testing device so you know the engine state avoid a costly mistake. Suspect you could find a few other key areas to look at when buying to find quality and avoid the bad ones.

Maybe do a little research on boat trader and kijiji as well as local dealers. I did this a while ago on the G23's depreciation... And quickly found that thousands can be lost in the first few years... You'd be aiming at +5yr old boats so less risk.

One other thing I'd look at would be buying new tires for the trailer. They too would be cheaper down there, will help with resale and avoid a blow out.

Trying to weight both sides. Again, if you have a passion for finding a boat you love, tinkering with different models and this might be a way of doing that while making a buck or two ... Or losing less money than you would have.

I think everyone doesn't do this because it involves some diligence, time, specific knowledge to avoid costly mistakes and work a fair amount of work...
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  #9  
Old 08-25-2013, 03:09 PM
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scott023 scott023 is offline
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Quote:
Originally Posted by Retoxtony View Post
Bringing most stuff back from the U.S. is actually quite simple and lots of people do it. My boat, quad and sled are all originally from down south. I didnt bring them across but someone did. Registering some stuff can be a pain but people far stupider than me manage to do it. I live fairly close to border so i buy lots of stuff from there. Get it shipped to the border, drive down and cross the border, pay the duty and tax on the way back.
Bringing cars and boats back isn't as easy as, say, RVs. Just do your research before you start out.
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  #10  
Old 08-25-2013, 03:54 PM
Jorski Jorski is offline
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Okay- I have half done it.

I wound up keeping the boat. Originally thought that I would do this every year. Just you busy and loved that first boat, so I couldn't part with it.

I found a US boat in Ohio. It was about 2/3 The price of a comparable boat on Canada.
Border was dead simple. Just had to pay the tax based on the receipt.

Bought the boat from a dealer. He lent me his dealer plate to two the trailer and boat back to Ontario. Then I sent it back to him by FedEx.

A friend of mine just brought a TT promo boat up from Kentucky. It was a good deal.

I say give it a shot. You'll do great.
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