You Have a Financed Car and You’re Moving Abroad. Here’s What to Do.
The car sitting in your driveway is one of the first practical decisions you’ll face when moving abroad — and one of the most overthought. People spend weeks researching whether to ship a 2019 RAV4 to Lisbon when the answer, for most Canadians, is straightforward.
If you have a car loan or lease, the decision gets a layer more complicated. But not as complicated as it feels. Here’s how to think through it.
All figures in CAD. Based on early 2026 data.
Can You Even Bring a Car to Mexico, Portugal, or Thailand?
Short answer: technically yes for two of them, but practically no for all three.
Mexico
You can bring your car temporarily with a Temporary Import Permit (TIP), which you apply for at the border or through Banjercito. The permit costs approximately $45-51 USD plus a refundable deposit of $200-400 USD depending on vehicle age. The permit ties to your immigration status — usually 180 days for tourists, or the duration of your Temporary Resident card. One critical detail: Permanent Residents cannot obtain a TIP. If you upgrade from Temporary to Permanent Residency, you must export the vehicle. You also can’t sell a foreign-plated vehicle in Mexico — ever. Make sure you have paper copies of your Canadian registration, as some provinces now only issue digital versions. Most long-term Canadians in Mexico end up selling back home and either using transit or buying a local car if they need one.
Portugal
You can import a car, and there’s actually a potential exemption worth knowing about. If you’re transferring your residence to Portugal, have lived outside the EU for at least 6 months, and have owned the vehicle for at least 6 months, you may qualify for a full exemption from import duties, VAT, and the ISV (vehicle tax). You need to apply within 12 months of establishing residency, and you can’t resell the vehicle for a year. Without the exemption, costs add up fast — import duties, 23% VAT, ISV, registration fees, and inspection can total $3,000-6,000 CAD on top of shipping ($2,000-4,000). Canadian vehicles are left-hand drive, which is fine for Portugal’s right-hand traffic, but resale value drops because you’re competing with European-spec cars. For most people, even with the exemption, the numbers don’t justify the hassle.
Thailand
Don’t. Import duties on foreign vehicles can exceed 200% of the car’s value. Thailand protects its domestic auto industry aggressively, and the import process is bureaucratic to the point of being prohibitive for individuals. Nobody ships a personal car to Thailand.
If the Car Is Financed, You Have a Lien Problem
This is the part people miss. If you still owe money on your car — whether it’s a loan or a lease — the lender has a lien on the vehicle. That means you cannot legally export it from Canada. The car is collateral, and it needs to stay in the jurisdiction where the lender can recover it.
Your options:
- Pay it off and sell. Contact your lender for the full payout amount. If you have the cash (or the sale price covers the balance), pay off the loan, get the lien released, and sell with a clean title. This is the cleanest path.
- Negotiate an early payoff. Some lenders will reduce the balance slightly to close the account early. It’s always worth asking, especially if you’re close to the end of the loan term.
- Lease transfer. If you’re on a lease, services like LeaseBusters or Canada Drives let you transfer the lease to another driver. You walk away, someone else takes over the payments. Check your lease contract for transfer fees (usually $300-500).
- Have someone in Canada take over payments. A family member can make payments on your behalf while you’re abroad. The car stays registered and insured in Canada under their name (or yours). This only makes sense if someone actually needs the car — otherwise you’re paying to store a depreciating asset.
The Math That Makes the Decision Easy
Most people already know what they should do. They just haven’t done the math out loud.
Your car costs more than the monthly payment. Add it up:
| Monthly Cost (Typical) | CAD |
|---|---|
| Car payment | $350-600 |
| Insurance (full coverage, Ontario) | $150-300 |
| Gas + maintenance | $100-200 |
| Total | $600-1,100/month |
Now compare that to getting around abroad:
| Monthly Transport Cost | Mexico City | Lisbon | Chiang Mai |
|---|---|---|---|
| Metro/transit pass | $15-25 | $55-65 | N/A |
| Uber/Grab (moderate use) | $60-120 | $80-150 | $40-80 |
| Scooter rental | $80-120 | N/A | $60-100 |
| Typical monthly total | $80-150 | $100-200 | $60-120 |
Selling your car and using transit and ride-hailing abroad frees up $400-900 per month. That’s rent in Chiang Mai. That’s half your rent in Lisbon. It’s one of the single biggest budget wins in the entire move.
For full cost breakdowns by city: Mexico vs Portugal vs Thailand Cost Comparison.
How to Sell Before You Leave
Give yourself 6-8 weeks. Rushed sales cost you money.
- Get the payout amount from your lender (if financed). Know exactly what you owe.
- Check market value on Canadian Black Book or AutoTrader. Price it competitively — you have a deadline, and sitting on a listing for two months is a luxury you don’t have.
- Private sale first. You’ll get $1,000-3,000 more than a dealer trade-in on most vehicles. AutoTrader, Facebook Marketplace, and Kijiji are your best channels in Canada.
- Dealer trade-in as a backup. If it’s three weeks before your flight and the car hasn’t sold, take it to a dealer. A lower price is better than a car you can’t use from 8,000 km away.
- Handle the lien at closing. If you owe more than the sale price (you’re “underwater”), you’ll need to cover the difference out of pocket. If the sale price exceeds the loan balance, the excess is yours. Your lender can walk you through the mechanics — they do this regularly.
While you’re sorting your car, you’ll likely be sorting the rest of your move too: The Complete Packing List for Moving Abroad from Canada.
Cancel Your Insurance — But Save Your History
Once the car is sold, call your insurance provider and cancel. But ask for one specific thing: a letter confirming your claims-free driving history.
Your claims-free record is worth real money. When you eventually return to Canada (or if you need to insure a vehicle abroad), that history gets you a better rate. Without the letter, you start from scratch as an “uninsured driver” — which means higher premiums for years. Some companies call this a “proof of insurance history” letter. Ask for it in writing before the policy closes.
If you decide to get a licence abroad, check this first: International Driver’s Licence for Canadians.
If You’re Keeping the Car in Canada
Maybe you’re a snowbird doing six months abroad and six months home. Maybe you want the car waiting for visits. Keeping it is fine — just do it properly.
- Storage: A garage is ideal. If you’re storing outside, invest in a quality car cover. Indoor storage runs $100-200/month depending on your city.
- Insurance: Switch to comprehensive-only coverage and drop collision and liability. This covers theft, vandalism, and weather damage while the car sits. You’ll save 50-70% on your premium. Tell your insurer the car is in storage and won’t be driven.
- Maintenance: Ask a trusted person to start the car every 2-3 weeks and let it idle for 15 minutes. A battery tender (about $40) keeps the battery from dying over a long winter.
- Fuel: Fill the tank before storage. A full tank reduces condensation and keeps the fuel system in better shape.
Even in storage mode, the car costs you $150-400/month between insurance, depreciation, and storage fees. Do the math honestly — if you’re abroad for more than a year, selling almost always wins.
The Honest Recommendation
Sell it. For the vast majority of Canadians moving abroad — retirees, remote workers, couples starting a new chapter — the car is a financial anchor. It sits in Canada losing value while you pay to keep it alive. Meanwhile, the cities we cover have excellent transit, affordable ride-hailing, and walkable neighbourhoods that make car ownership unnecessary.
The money is better in your pocket abroad. A $15,000 car sale is a year of rent in Chiang Mai or six months of rent in Porto. That’s not a car. That’s freedom.
Planning your move? Start with the full packing checklist and the cost-of-living comparison for all three countries.
This guide is for informational purposes only. Visa requirements, costs, tax rules, and healthcare policies change — always confirm details with official sources and qualified professionals before making decisions. Lien release processes vary by province and lender — contact your financial institution for specifics. All costs in CAD unless noted.
Congratulation!