Buying & Paying for a car from the USA
Discussion
As you’ve posted under classic cars, I’m going to assume the car you’re importing is over 30 years old, duty is payable otherwise.
This was my understanding when I checked this out a little while ago, but you should double check that nothing’s changed.
A car over 30 years old is regarded has a Collectors item tariff under HMRC heading 97.05
However it doesn’t apply if the car is incomplete or modified.
I found out that shipping costs were $4,000 but again the west coast will differ from the east coast.
There was 5% VAT on the car plus shipping but zero duty.
My calculations were as follows
A $30,000 car +$4,000 shipping = $zero duty
Equals $34,000 ex VAT
Total of $35,700 inc 5% VAT
Insurance should also be factored in.
Hope that helps, good luck with it.
This was my understanding when I checked this out a little while ago, but you should double check that nothing’s changed.
A car over 30 years old is regarded has a Collectors item tariff under HMRC heading 97.05
However it doesn’t apply if the car is incomplete or modified.
I found out that shipping costs were $4,000 but again the west coast will differ from the east coast.
There was 5% VAT on the car plus shipping but zero duty.
My calculations were as follows
A $30,000 car +$4,000 shipping = $zero duty
Equals $34,000 ex VAT
Total of $35,700 inc 5% VAT
Insurance should also be factored in.
Hope that helps, good luck with it.
A lot of American's use something called ESCROW whereby funds are exchanged into a mutually agreed bank account via a bank and the money stays there until both parties are happy with the deal then the money is released. I am not sure if such a thing exists in the UK.
Also, you don't say anything about whether you have the car lined up to buy or are just starting looking. Please be aware that most US states don't have MoT's or equivalent and they can very in thoroughness. I see many shiny classics here in the US that I know would fail a UK MoT. Definition of rust can vary enormously too. Please try to get a well qualified third party inspect the car and take lots of photos. I have bought cars sight unseen here in the US long distance and so far been very lucky.
I have shipped UK to US, not the other way though.
What car do you have in mind?
Best of luck.
Also, you don't say anything about whether you have the car lined up to buy or are just starting looking. Please be aware that most US states don't have MoT's or equivalent and they can very in thoroughness. I see many shiny classics here in the US that I know would fail a UK MoT. Definition of rust can vary enormously too. Please try to get a well qualified third party inspect the car and take lots of photos. I have bought cars sight unseen here in the US long distance and so far been very lucky.
I have shipped UK to US, not the other way though.
What car do you have in mind?
Best of luck.
iDrive said:
Shipping from the East Coast $930
I have a Shipping Agent who will collect from seller and drive to port for $250
Car is just under 30yrs, so I know I have VAT to pay
ESCROW is what really interests me - how can I make it work for me?
Thank you
Where is the car located? I live in Charleston SC, east coast port with direct sailings to the UK. Happy to help. From the UK originally, still plays with British cars, but know plenty of natives here into the American iron.I have a Shipping Agent who will collect from seller and drive to port for $250
Car is just under 30yrs, so I know I have VAT to pay
ESCROW is what really interests me - how can I make it work for me?
Thank you
I,m doing this right now.
I’m using a car shipping company not far from me and have chosen to have the car shipped in its own container for safety sake.
I was so concerned regarding the number of scam adverts including those promising use of an escrow company that I went to the west coast of California to view the car at the sellers house and transfer the cash online. The cash transfer took less than 24hours. ( I set it up with my bank in the uk before going).
The car is fine and the transaction so far is OK.
The fly in the ointment is that the car is at the shippers awaiting US customs clearance before it can be loaded onto the ship . Hopefully not for long.
All in all a bit stressful and I didn’t choose the lowest cost option but the risks of dealing with unknown sellers who purport to be someone they are not was something I wasn’t happy to be involved in
I’m using a car shipping company not far from me and have chosen to have the car shipped in its own container for safety sake.
I was so concerned regarding the number of scam adverts including those promising use of an escrow company that I went to the west coast of California to view the car at the sellers house and transfer the cash online. The cash transfer took less than 24hours. ( I set it up with my bank in the uk before going).
The car is fine and the transaction so far is OK.
The fly in the ointment is that the car is at the shippers awaiting US customs clearance before it can be loaded onto the ship . Hopefully not for long.
All in all a bit stressful and I didn’t choose the lowest cost option but the risks of dealing with unknown sellers who purport to be someone they are not was something I wasn’t happy to be involved in
Know someone who bought a 1970s Ferrari from the US in 2012. They bought and imported it via a UK firm / broker who specialise in American vehicles and had done many such transactions. They just bunged the firm ~£17k for car + transport + taxes and ~4 months later it rolled up on their doorstep.
I would advise caution, a friend of mine recently bought a classic Jag from the USA.
Asked all the right questions, got loads of photsos but when we collected the car from the docks it was nothing like it was described as and nothing he could about it.
My advice would be don't be too optimistic on the condition, if you can afford to fly out to have a viewing do so before paying.
Asked all the right questions, got loads of photsos but when we collected the car from the docks it was nothing like it was described as and nothing he could about it.
My advice would be don't be too optimistic on the condition, if you can afford to fly out to have a viewing do so before paying.
I know the OP's car is under 30 years old, so this isn't entirely relevant, but my understanding is that the 5% VAT / 0% Duty only kicks in at 50 years old. Cars between 30 and 50 years old can be at the 5% rate if they can be demonstrated to be of a certain quality. So a knackered 1986 Toyota Camry might not tick the boxes. I imported a 45 year old Dodge Challenger in really good condition and Hill Shipping sorted it at 5% for me. But, unless the rules have changed in the last couple of years, a 30 year old one isn't guaranteed 5%.
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