| Thursday, August 20th, 2015

Money transfer guide for importing cars from overseas

Are you planning to buy a new car or a classic car from overseas? Have you been scouring car websites and reviewing auction listings? If so, we can help you with a few tips to consider. Then when it comes to paying for the car, be sure to consider using one of our listed money transfer providers to achieve the best final purchase price for your car.

1) buy from a reliable source

If you decide you want to buy a modern car or classic car overseas, you will need to find a reliable car dealer or auction house to buy from. Take great care if you are planning to buy a car from an individual overseas. Using a car dealership or auction company that deals with classic cars is a great way to find the exact car you want to purchase and check the classic car magazines to see which dealers advertise in them. Check whether the seller has dealt with other foreign purchasers before. Take the time to compare different cars from different dealers in different countries as you may find some considerable price differences that are more than just what may be accounted for by different foreign exchange rates.

Some of the most well known auction houses are RM Auctions, Gooding, Barrett Jackson, Mecum and H&H. Many of these have databases of past purchase prices paid for the cars and are a great research resource.

2) Check what you need to do to register you car

Purchasing a car from an unfamiliar country can be complicated especially if you don’t know what the procedure involves. Check that you are able to register the car in the country in which you wish to import and drive it and check it will pass any local inspections needed. You would be advised to speak to a local car dealer to find out what may be required and to get a price for any changes that you may have to do once the car arrives. This could include headlights, speedometer, glass or the windscreen.

3) Review your options for international shipping

If you intend to use international shipping for your car, make sure that you use a recognized agent and that you car is insured as part of this process. Understanding all the procedures involved in importing a car from overseas is essential so that the car arrives in your driveway in the condition in which you bought it.

4) Budget for taxes, import duty and any costs of conversion

Each country is different when it comes to reviewing what criteria may lead to a tax on the import of a car and this is especially true for classic cars as this typically depends on the age and sometimes the size of the engine. There may be additional taxes and don’t forget any potential conversion costs too.

5) Understand what warranty you may receive if any with the car

Try to find out if the car you intend to purchase is insured under the manufacturer’s warranty when it is imported from overseas. This will likely only occur on newer cars. You should also carry out thorough research to know if the warranty service is still available at a repair center located in your home country. Classic cars are expensive to maintain and often do not come with any warranties.

6) Join your local classic car club

Try to join the local club for mark or make of car you are looking to purchase. These groups have vast amounts of knowledge about your specific car and will likely have members who have been through the same process that you are going through.

7) Use a money transfer provider to save money and time on the purchase

If you are buying a car overseas either from a dealer, a private individual or an auction house you have the opportunity to save on the purchase my using a money transfer provider versus you bank. An established international money transfer provider will be familiar with the purchases of luxury good overseas and larger auction houses and dealers will be familiar as well. If you are importing a classic Mustang from the US for example, it is also worth keeping an eye on the dollars to pounds exchange rate and you may want to explore a hedging product to lock in a future exchange rate if you are planning to make a purchase at a known time several months ahead.

Good luck!

FXcompared.com is an fx money comparison site for international money transfer and to compare rates from currency brokers for sending money abroad. The website and the information provided is for informational purposes only and does not constitute an offer, solicitation or advice on any financial service or transaction. None of the information presented is intended to form the basis for any investment decision, and no specific recommendations are intended.  FXC Group Ltd and FX Compared Ltd does not provide any guarantees of any data from third parties listed on this website. FX compared Ltd expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from (i) any error, omission or inaccuracy in any such information or (ii) any action resulting therefrom.