Friday, January 19, 2007

Buying & Insuring Imported Cars - Top Tips To Save Money

With new cars in the UK coming at high prices, it's not surprising that many people turn to importing vehicles from other countries. If you are prepared to put in the effort it can save you a lot of money, but there are many things to be aware of when considering importing a car.

The Law
European Law prohibits any manufacturer from preventing an EU citizen from purchasing a vehicle at the pre-tax price in any other EU country. What this means is that there's nothing stopping you from buying a car from anywhere within the European Union.
There are also no holds in place to prevent you from importing a car from America. However, bringing a car over from the states will cost you an extra 10% import duty as well as the standard 17.5% VAT.

Vehicle Specifications
One of the main things to be careful with when importing a vehicle to the UK is the standard and specifications of the car. Many vehicles which appear to be exactly the same can have subtle differences from country to country. Items such as headlights, steering wheels, mirrors etc. must meet the UK specifications if you want to be able to drive it over here. Find out which fittings come as standard as this can also vary from country to country, and make sure you get all details and specifications in writing from your dealer. Also remember to specify that you want a right hand drive vehicle.

Ensure that the car comes with an EU "Certificate of Conformity" approval to allow you to register the vehicle in the UK. Imports from America must pass the Single Vehicle Approval regulations (SVA).

Payment & Hidden Costs
When importing a car, it is worth being as secure as possible when parting with your money. Many dealers will ask for a large deposit up front, which you are unlikely to receive back if the dealer goes bust. For this reason it is advisable to pay by credit card so you have payment protection cover.
Before making any deal however, and parting with any cash, you should consider all the costs involved with purchasing and transporting the vehicle over to the UK. Will it really save you as much money as you hoped?
There will be a standard addition of 17.5% VAT for all cars purchased and brought into the UK, and as mentioned above, an additional 10% Import tax when buying from America. On top of this, you must consider shipping costs, shipping insurance while your vehicle is in transit, and the possibility of the increased cost of imported car insurance.

Shipping & Registering
Arranging shipping for your vehicle can be expensive, but their are a lot of companies that specialise in these services so shop around for the best price. Alternatively, you can travel to the dealer and drive the car back yourself if you really want to try and save a bit of extra money. You will require 'transit' or temporary plates for the journey home which will last a month and won't set you back too much. You also need to make sure you have insurance while travelling back.

Once the vehicle has arrived in the UK, it must be registered and taxed as soon as possible. The vehicle should not be used or kept on public roads until the registration and vehicle tax formalities have been completed. The only exception to this is if the vehicle requires an MOT or an SVA, in which case to vehicle may be driven to the pre-arranged appointment.

Once your vehicle is road legal, the only thing left to do is arrange insurance for your imported car.

About the Author:
Duncan Hall
For more information on importing vehicles, and to get deals on insurance for imported cars, visit QuoteA, a specialist in modified and imported car insurance.
Article Submitted On: September 19, 2006
Article Source: http://EzineArticles.com/

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