Import, Yes or no

Import yes or no – Pros, Cons, and Cost

Introduction

Importing a car from Japan to the UK can be an attractive proposition for car enthusiasts seeking unique models, lower prices, or higher-spec vehicles. However, the process involves more than just the allure of a new ride; it comes with its own set of challenges, costs, and regulatory hurdles. Here’s a detailed look at the pros, cons, and the financial implications of bringing a car from Japan to the UK.

Pros of Importing a Car from Japan to the UK:

Cost Savings:
Japanese cars are often cheaper due to high depreciation rates in Japan, where vehicles are frequently replaced due to stringent roadworthiness tests (Shaken). Even with import costs, you might find the overall expense less than buying the same or equivalent model in the UK.
Unique Models:
Access to models not available in the UK, including JDM (Japanese Domestic Market) cars like the Nissan Skyline GT-R or Kei cars, which offer a unique driving experience.

High Specifications:
Japanese cars often come with higher specifications for a similar model sold in the UK, providing better features or technology at a potentially lower cost.
Condition:
Japanese vehicles are typically very well-maintained due to the rigorous Shaken tests, meaning you can import cars in excellent condition, often with lower mileage compared to equivalent UK models.

Right-Hand Drive:
Japan’s right-hand drive (RHD) vehicles are compatible with UK roads, simplifying the transition.

Cons of Importing a Car from Japan to the UK:

Compliance and Modifications:
Japanese cars do not automatically meet UK safety and environmental standards. They often require modifications and must pass an Individual Vehicle Approval (IVA) test, which can be costly and time-consuming.

Insurance:
Insurance can be more expensive due to the perception of grey imports as higher risk, potential scarcity of spare parts, and less familiar models to insurers.

Maintenance and Parts:
Finding parts for unique Japanese models can be challenging, leading to higher repair costs and longer wait times for parts. This is particularly true for models not sold in the UK.

Paperwork and Procedures:
The import process involves extensive paperwork, including import declarations, VAT, duty payments, and vehicle registration, which can be daunting and error-prone if not handled correctly.

Resale Value:
Imported cars might depreciate more quickly due to their niche market appeal, potentially affecting resale value.
Potential for Damage or Issues:
Shipping risks include damage during transit, incorrect documentation, or discrepancies between the car’s online description and its actual state.

Cost Considerations:

Purchase Price: This varies greatly by make, model, and condition but can be significantly lower in Japan.
Shipping Costs:
RoRo (Roll on/Roll off): Typically £500 to £1,200.
Container Shipping: £1,500 to £2,000.
Costs depend on the size of the car and shipping method.
Customs Duty: Usually 10% on the FOB (Freight On Board) value, which includes the vehicle’s price plus shipping costs.
Import VAT: At 20%, applied on the total of the vehicle’s price, shipping, and duty.
Port Fees and Handling Charges: These can range from £70 to £100 for terminal handling and documentation, plus customs clearance fees around £75 per entry.

IVA Test: Costs around £190-285, necessary for cars under 10 years old to ensure they meet UK standards.
Registration and MOT: Additional fees for UK registration and possibly an MOT test if the car is over three years old.

Modifications: Costs for adapting the vehicle for UK roads, like changing headlights or removing speed limiters, can add up.
Insurance: Often higher for imported cars, with premiums varying based on the model, modifications, and insurer.

Conclusion:

Importing a car from Japan to the UK can offer exciting opportunities for car enthusiasts to own something unique at potentially lower costs. However, it’s crucial to factor in all additional expenses and logistical challenges. The process can be rewarding but requires careful planning, research, and often the assistance of specialists to navigate through the legal and regulatory landscape. If you’re considering this, ensure you understand not just the financial aspect but also the commitment to maintaining such a vehicle in a foreign market.