Our love for cross-border shopping as Canadians down to the US can vary with the mood of our Canadian dollar exchange rate to the US dollar.
Here are six tips to get the best value out of your trip.
1. Know Your Duty-Free Allowances
This allows you to figure out the true cost of bringing back goods into Canada. More importantly, if a few family members are going shopping, then the multi-day duty-free allowances may make sense even when the cost of a hotel is added in. Not sure what the Duty-free allowance is? Then visit the Personal exemptions mini guide for more information.
2. Minimize Surprise Foreign Exchange costs after your purchase
At some point you are going to pay to exchange Canadian dollars to US dollars, so plan for it. Consider a foreign currency prepaid card, like the Canada Post Cash Passport Prepaid Reloadable Mastercard, where you can load funds into US dollars, and know exactly the amount that you have for spending, which can help you budget better.
3. Join Loyalty and Email Lists of your Favorite Spots
And not just retailers, join hotel and restaurant lists too, as they regularly send out deals and discounts specially designed to attract Canadians down and shop in the US. Sometimes a whole mall will also offer special discounts or exchange rates for Canadians. Stay up to date with offers that would benefit you.
4. Gas in the US
Is it cheaper? A lot or a little cheaper depending on where you live in Canada and the time of year. Be sure to go to this Gas Savings Calculator to know exactly.
5. Sales Time in the US
Good timing on your trip can really bring you into the significant discounts we see in the US – which you need to consider if the Canadian dollar exchange isn’t where you hoped it would be. Obvious ones are Presidents Day (February), Fourth of July, Black Friday (fall), Back to School Shopping (August), and many more. Subscribe to your favorite store’s online flyers to narrow down what works for you.
6. State Sales Tax
There are differing rules by states regarding sales tax and sales tax refund programs. Minnesota and Pennsylvania for example have no sales tax on clothing. Montana, New Hampshire, and Oregon have no state sales tax. If you plan on buying a large expensive item, spend some time comparing the costs in various states, as well as, duty to fully understand your realistic best cost options. For example, a friend of mine bought a car in the US and purposefully sought out the best deal in Oregon because of no sales tax.
Using these simple tips and planning ahead will help you determine how to get that best deal even in times when exchange rates aren’t your best friend.