What you need to know about buying an imported car
Buying an imported car can be an exciting way to get your hands on an exotic model or save money. But, it does come with its challenges.
You’ll need to consider import taxes, registration, and compliance with UK regulations, which may involve modifications for roadworthiness. Insurance can be more expensive, and sourcing parts might prove difficult.
Take a good look at what’s involved with importing cars to ensure you’re prepared for additional costs and requirements. This will make the process smoother and ensure your vehicler is legally on the road.
Keep reading to discover more.
What are parallel and grey imports?
Parallel imports
Parallel imports refer to vehicles brought into the UK from the EU through authorised distribution channels. These vehicles are usually the same as UK models, but go for less money in EU countries.
Since these cars are built to European specifications, they typically meet UK safety and environmental standards, making registering and insuring them in the UK easier. However, warranties may vary, and it’s essential to ensure that service and parts availability align with UK dealerships for easier maintenance.
Grey imports
Grey imports are vehicles brought into the UK from outside the EU, typically from Japan or the USA. These cars are often models that aren’t available in the UK market, and they may need significant modifications to meet UK regulations.
Meeting emissions and safety standards and converting the speedometer are common requirements for these vehicles. Keep in mind that insurance for grey imports may be more expensive, and finding spare parts might be challenging.
Pros and cons of owning a parallel or grey import vehicle
| Type | Pros | Cons |
| Parallel Import | 👍 Typically identical to UK models, ensuring compliance with UK standards. 👍 Often available at lower prices due to differences in international markets. 👍 Easier to insure and register since they meet European regulations. 👍 Familiar brand servicing and parts availability in the UK. | 👎 Warranty terms may differ from UK-purchased vehicles. 👎 Limited manufacturer support for vehicles bought outside the UK. 👎 Potential difficulties with reselling, as buyers may prefer UK-registered models. |
| Grey Import | 👍 Access to unique models not available in the UK market. 👍 Potentially lower purchase prices, especially from countries like Japan. 👍 Often well-maintained and low-mileage when sourced from countries with strict vehicle regulations. 👍 Appealing to car enthusiasts seeking exclusive designs or features. | 👎 May require modifications to meet UK regulations (e.g., emissions, speedometer). 👎 Higher insurance premiums due to unfamiliarity with the model. 👎 Difficulty finding spare parts or specialised servicing in the UK. 👎 Potential complications with registration and resale value. |
Considerations with buying an imported vehicle
If you’re considering importing a vehicle, it’s important to research its compliance with UK regulations, including safety and emissions standards. Check whether the car will require modifications, such as speedometer conversion or lighting adjustments.
Also, investigate the availability of parts and servicing for the specific model, as this can impact long-term costs. Make sure you understand the registration process and any associated fees, and consider the potential impact on insurance premiums for imported vehicles.
Look at your needs and budget
When considering an imported vehicle, think about why you’re importing rather than buying locally:
🤔 Consider whether you want a unique model or a better price.
🤔 Assess how much you’re willing to spend on the vehicle itself, as well as:
👉 Potential import taxes
👉 Modifications
👉 Ongoing maintenance costs
🤔 Be realistic about long-term expenses, such as higher insurance premiums or difficulty sourcing parts, to ensure the purchase fits within your financial plans.
Understanding the legal and tax implications
Importing a vehicle involves jumping over various legal and tax hurdles. Depending on the car’s origin, you’ll need to pay VAT, import duties, and possibly registration fees.
Ensure the vehicle complies with UK regulations, such as safety and environmental standards, before registration. Failing to meet these requirements can result in expensive modifications.
Also, make sure to account for any paperwork needed, such as the Certificate of Conformity, to avoid delays and legal issues.
Step-by-step guide to importing a vehicle
1. Research vehicle regulations
- Ensure the imported car meets UK safety and emissions standards.
- Check if modifications, such as speedometer conversion or lighting changes, are required for compliance.
2. Obtain necessary documentation
- Secure a Certificate of Conformity (for EU imports) or Individual Vehicle Approval (IVA) for non-EU vehicles.
- Gather invoices, proof of purchase, and vehicle history documents.
3. Pay taxes and duties
- Pay VAT (20%) and import duties (typically 10% for non-EU vehicles) based on the car’s value.
- Use the government’s Customs Declaration Service to calculate and pay.
4. Get vehicle insurance
- Obtain specialised insurance for an unregistered imported vehicle.
- Be prepared for higher premiums due to unfamiliarity with the model.
5. Vehicle registration
- Apply for UK registration through the DVLA.
- Provide proof of identity, vehicle documents, and tax receipts. The process can take up to six weeks.
6. Complete an MOT (if applicable)
- For vehicles over 3 years old, you’ll need to pass an MOT to ensure roadworthiness.
- This checks emissions, safety features, and overall condition.
7. Road tax and licence plates
- Once registered, pay road tax and order UK-standard number plates.
- Install the plates before driving your vehicle on UK roads.
8. Final checks
- Ensure all documentation is complete and stored safely.
- Confirm the vehicle’s readiness for UK roads, and enjoy your new import!
Required documents and regulations
When importing a vehicle, you’ll need several key documents to comply with UK regulations:
📜 Certificate of Conformity – for EU imports
📜 Individual Vehicle Approval (IVA) – for non-EU imports
Also, check if the car requires modifications to meet UK road standards, such as emissions controls and safety features, before registering and using it.
Paying import taxes and duties
When importing a vehicle into the UK, you must pay VAT (usually 20%) and import duties (around 10% for non-EU cars). These charges are based on the car’s value, including shipping and insurance.
Before registering the car, you must also declare it through the Customs Declaration Service and pay the taxes. Keep receipts and proof of payment, as they are required for the vehicle’s registration with the DVLA.
FAQs
What are the pitfalls of buying an imported car?
Pitfalls include higher insurance premiums, difficulty sourcing spare parts, and potential modifications to meet UK standards. Imported cars may face delays during registration and added costs like import taxes. The resale value can also be lower due to unfamiliarity with the model.
Does an imported car cost more to insure?
Yes, imported cars generally cost more to insure. Insurers may be unfamiliar with the model, and parts could be more challenging to source, increasing repair costs. Grey imports, in particular, often attract higher premiums due to non-standard specifications and potential modification requirements.
How much does it cost to register an imported car in the UK?
Registering an imported car in the UK costs £55 through the DVLA. Additional costs include paying VAT, import duties, and any necessary modifications to meet UK standards. An MOT test may also be required, especially for older or non-EU vehicles, adding to the overall expense.
Thinking of buying a used car?
Got your eye on a second-hand car but not sure you know all you need to know about buying it? Worry no more! Our guides on purchasing used vehicles will help you avoid getting stung when it comes to handing your money over.
- Sell my car
- Track your car value
- What to look for when buying a used car
- How many different car brands are there
- Your rights when buying a used car from a dealer
- Best first cars for new drivers (2024)
- How to test drive a car
- Is there a cooling-off period when buying a car?
- Can you lease a used car?
- Best cars for teens
- What documents should I get when buying a used car?
- Best family cars
- Is there VAT on second-hand cars?