I didn't realize that. I guess one could get around that by having a US addressed customer purchase a vehicle, then in a private party sale could sell to the other person after the initial state title action was completed. Of course somebody would have to foot the cost of the initial purchase, titling etc. Then the private party sale could take place.
Is this at all feasible?
It can be done legally. But the export and customs paperwork is pretty extensive. For example, if the end buyer is canadian, he may need to have both an American and a Canadian customs broker involved. Its possible to do all the paperwork without a broker. However, Canada makes it very difficult for an individual to do the paperwork and a broker really makes this process work smoothly if you could call it that.