Buying and importing a car from overseas

It can be tempting to search further afield for the car of your dreams. Foreign markets offer a tantalising array of vehicle makes and models unavailable in the UK. And the prospect of finding a bargain can seem irresistible.

Be warned, though: importing a vehicle isn’t a straightforward process. You must deal with customs regulations and import duties and make sure the car you’ve purchased meets UK safety and environmental regulations. 

This article will explore the process of buying a car abroad, bringing it to the UK and insuring it. It will help you decide if importing a car is right for you.

There are several reasons you might decide to import a car:

• Better selection: Foreign markets have a wide range of vehicle makes and models that aren’t sold in the UK 
• Cost savings: Lower-priced automotive markets offer possible savings, even after you’ve paid taxes and shipping costs. In some instances, you can save money on your purchase, despite import expenses
• Investment potential: Classic vehicles that are available overseas might appreciate in value over time
• Prestige factor: Unusual foreign cars have undeniable cachet in the UK
• Living abroad: If you’ve been living in another country, you might decide to bring your vehicle with you when you move back to the UK

If you handle every step of the import process yourself, you can avoid paying an agent’s fees. But importing a car is a complicated endeavour with no room for error. Here’s your to-do list if you decide to go it alone:

• Contact HM Revenue and Customs (HMRC): You must inform HMRC using an import declaration via email that you’ve imported a car. Then, HMRC will make a Notification of Vehicle Arrivals (NOVA) application for you. This is important because you need to be in the NOVA system before you can register your car. If the vehicle has a 48cc engine or less, or a 7.2kw electric engine you can register without telling HMRC
• Pay applicable taxes: HMRC will tell you whether you have to pay duty and a value-added tax (VAT) for your imported car. The rates you’re charged will depend on what type of car you bought, what age it is and what country you purchased it in. You can use the gov.uk website to check tax rates for new unregistered cars
• Move the car: The vehicle must be transported, not driven, upon entry to the country
• Get your car inspected: Your imported car must pass an inspection to prove it complies with UK safety and environmental regulations. The type of testing varies depending on how old the car is and what country you’re bringing it from 
• Register the car: You must register your imported car with the Driver and Vehicle Licensing Agency (DVLA). Registration numbers will be provided by the DVLA and this must be swapped for the foreign plates.
• Get insurance: You must obtain insurance – specialised cover may be required because many insurance companies consider imported cars to be non-standard

As you work your way through the import process, any mistakes on your part could increase the time you have to wait before you can legally drive your car. To avoid snafus, you might consider hiring an import agent.