Many people take the opportunity, of our neighbours out west, to purchase a vehicle at a lower price. However, there may be some implications when doing so. We have outlined the process of what it takes to purchase a vehicle out of province, as well as the regulations you need to follow when bringing the vehicle back into Saskatchewan.
One common misunderstanding is that you will save money on the PST. This is not the case. When you bring in your bill of sale to register your vehicle with SGI, you will be asked if the PST was collected on the vehicle (which would be indicated on the bill of sale), if it does not show the collected PST by the seller, you will be charged PST on the red book value or bill of sale value, whichever is greater (some exclusions apply). If you have questions about PST, visit our PST blog here or contact the Saskatchewan Ministry of Finance.
You will also likely want to do a lien check and VIN search on the vehicle to make sure there aren’t any outstanding liens or damage/claims status on that vehicle.
You’ve made the deal and purchased a vehicle. How are you bringing it home?
Here are a few options to consider.
- Permit – You can purchase a temporary insurance card (TIC) from our office prior to purchasing your vehicle out of province. The TIC insures you for 7 days for your newly purchased vehicle. This can be applied to any (one) vehicle you purchase – So if you change your mind and purchase a different vehicle than you originally planned, this TIC will still insure it. Then you can take that Temporary Insurance Card and your bill of sale, into an Alberta registry (or other province) to get your permit to legally drive home. The TIC is approximately $11 for this type of transaction.
- Plate – SGI has allowed a temporary 28 day registration for vehicles purchased out of province. This is not available to all vehicle types, so make sure you ask prior to purchase. This plate allows you to travel legally back into Saskatchewan. You will not be able to renew this registration after it expires, unless you’ve completed the required inspections (if applicable).
- Plate transfer – If you are trading a vehicle in, to an out of province dealer, you can take your plate off your traded in vehicle and put it on the newly acquired vehicle. With this transfer you have 7 days of coverage without having to notify SGI. You need to keep a copy of your bill of sale showing the disposal of your old vehicle and the acquisition of the new one. You need to keep a copy of your old registration and you will need to also purchase the temporary insurance card ahead of time to be insured out of province for 7 days. The TIC for this transaction is approximately $2. So it is relatively inexpensive.
- If you are a dealer and have access to a dealer plate, you can use this to put on your newly acquired vehicle, however the dealer plate can only be used for 48 hours out of province. So keep that timeline in mind.
I’ve got the vehicle home, now what?
- You will likely need to complete the “First-Time Registered (FTR) inspection for the newly acquired vehicle as it was purchased out of province. SGI requires that the vehicle be inspected to meet their vehicle standards and safety requirements. SGI explains the different types of inspection requirements here.
- Some vehicles that are brought into Saskatchewan are exempt from undertaking an inspection. If the owner of the vehicle is moving to Saskatchewan and the vehicle was previously registered in AB or BC, they could potentially use the inspection exemptions under the New West Partnership Agreement created in 2010 between Alberta, BC and Saskatchewan, which is: If the light vehicle is less than 4 years old from the date of manufacture or has been inspected by a NWP government inspection program in the last 90 days they are exempt from an additional mechanical inspection in Saskatchewan.
- Don’t know where to start with an inspection? Here are some certified vehicle inspection stations.
- Once you’ve completed the inspection (or you were exempt), you can bring in the bill of sale, NVIS (if it is a brand new vehicle) and inspection certificate into an SGI Issuing office to get your vehicle registered and insured. Purchasing an extension policy should be part of this process as you will want additional liability and you’ll likely want to lower your deductible, purchase glass coverage or add replacement cost coverage to your new vehicle.
What if my vehicle fails inspection?
Unfortunately, if the vehicle fails the inspection, this will be on your dime to fix. You will need to make the recommended repairs and take your vehicle for a second inspection. This is why it is important to do a VIN search prior to purchasing to see if there could be any potential issues/damage with the vehicle prior to purchasing it.
Can I tour around the countryside on my 7 day in-transit permit?
You’d have to ask the jurisdiction you’ve purchased the permit from, but typically the in-transit permit, is designed to get you from Point A to Point B and you aren’t allowed to deviate from the most direct route home. You do not want to be touring around on a permitted vehicle way off course and have an accident, this could cause serious issues during the claim process.
Many questions arise from the sale or purchase of a vehicle outside Saskatchewan. It is important to always contact your broker prior to leaving to make sure you have the necessary documents in place ahead of time. We want you to enjoy your new purchase, so let us help you cross your t’s and dot your i’s, so you aren’t scrambling during the sales process.