Buying A Car From Abroad: A Guide to International Payments
Buying a car from abroad is an exciting prospect, weather you are looking to upgrade your current car or add to your luxury supercar or classic car collection. It could be top performing Porsche from Germany, a stylish Ferrari from Italy, or a cutting-edge Tesla from the United States, the allure of acquiring a sought-after car from abroad is undeniable.
Buying internationally can give you access to unique and rare cars you might not find at home. But dealing with international payments and currency exchanges can be challenging. In this post, we’ll guide you through the process of buying a high-end vehicle abroad and show you how an FX broker can help make those international payments easy. Find out the tips and tricks for purchasing your dream car from the global market while getting the most out of a professional FX service.
Why Buy a Car from Abroad?
Purchasing a luxury, classic, or supercar from abroad can offer access to rare models, potentially better prices, and vehicles in superior conditions due to different climates.
Exclusive models: Buying a car from abroad may give you access to makes, models or limited-edition cars that are not available in your domestic market.
Better Prices: Prices for luxury, classic, or supercars can vary significantly between countries. In some cases, you might find better deals abroad due to different market conditions. You may also benefit from tax incentives and favourable foreign exchange rates.
For example, the cheapest place in the world to buy a new Porsche 911 Turbo S is Canada, with a price tag of C$231,700, which is the equivalent of £136,703, whereas in the UK, the same car starts with a base price of £180,600.
Investment Opportunities: Classic and rare cars can be good investments, potentially appreciating in value over time. Accessing international markets allows you to find these gems.
How to Buy a Car from Abroad
Research: Identify the car you want and where it’s available.
Find a Dealer: Locate reputable dealers or auction houses. Always check their credibility via online reviews and ratings.
Inspect: Travel to see the car or hire a trusted agent. You could also use websites like carVertical, to obtain a full report on the vehicle’s history including; previous owners, mileage, and any reported accidents.
Negotiate: When buying a car from abroad ensure you agree on price and payment terms as you’ll likely need to make payments in a foreign currency. Our London based team can help guide you through the process, making your international payments quick and easy. We can facilitate large one-off payments or regular payments to pay off your purchase in installments.
In the case that you are financing your purchase with regular payments, we allow you to lock in an exchange rate for up to two years with our forward contracts. This ensures that you receive the same rate for all your overseas payments, regardless of any volatility that might occur in the currency exchange markets.
Pre-import arrangements and considerations
You must complete certain steps as soon as you bring a vehicle into the UK permanently. You can pay an importer or shipping company to do them for you.
1. Tell HM Revenue and Customs (HMRC) within 14 days that the vehicle has arrived in the UK.
2. Pay VAT and duty if HMRC tells you to.
3. Get vehicle approval to show your vehicle meets safety and environmental standards.
4. Register and tax the vehicle with DVLA – they’ll give you a registration number so you can get number plates made up. You must also insure your vehicle before you drive it on UK roads.
Documentation: Secure necessary documents, including the receipt of sale, title, and proof of compliance with UK regulations.
Shipping: Arrange for the car’s transportation (air, sea, or land). Shipping is the most popular way to transport a car to the UK.
Regulations: Understand UK import regulations and compliance requirements.
Conversion: Ensure the car meets UK road standards
Costs and Exchange Rates: Account for all costs, including shipping, duties, VAT, and insurance. Check the exchange rate and keep informed of any potential market fluctuations that could affect the rate.
Exchange rates can vary significantly between providers. Use comparison tools to find the best rates and avoid excessive markups. We will always ensure to offer you the best rates available and can help you with tools to lock in a particular rate in advance.
Currency markets can be volatile. If possible, monitor exchange rates and time your transfer when rates are most favourable. If you choose Fiscal FX to facilitate your international vehicle payment, we can keep you informed of any upcoming events that may affect the exchange rates in your purchase destination.
Secure Your Transfers: Ensure that any service you use for transferring money abroad has robust security measures in place to protect your funds. Safeguarding you funds is our top priority, you can read more about our robust security measures to give you peace of mind.
Best Countries to Import Cars From
🇩🇪 Germany: Known for high-quality engineering and luxury brands like BMW, Mercedes-Benz, and Porsche. Cars are often well-maintained and offer excellent performance and durability.
Currency: Euro (EUR).
🇯🇵 Japan: Offers reliable and well-maintained vehicles, including popular classic models and innovative technology. Japanese cars are known for their longevity and quality.
Currency: Japanese Yen (JPY).
🇮🇹 Italy: Famous for exotic supercars like Ferrari, Lamborghini, and Maserati. Italian cars are renowned for their design, speed, and performance.
Currency: Euro (EUR).
🇺🇸 USA: Wide selection of classic cars, muscle cars, and modern luxury vehicles. The US market offers diverse options at competitive prices.
Currency: US Dollar (USD).
🇦🇪 UAE: High-end luxury cars and supercars are frequently available at competitive prices. The UAE has a well-established market for high-value vehicles.
Currency: UAE Dirham (AED)
Currency Exchange Impact on buying a car from aboard
Fluctuations in exchange rates can significantly affect the total cost of purchasing a car abroad. Timing your currency exchange can save you a considerable amount of money. Leveraging the expertise of an FX broker can help you navigate the complexities of international payments and currency exchange, making your purchase smoother and more cost-effective.
Key Considerations and Benefits of FX Broker Assistance
When buying a luxury car from a foreign market, several crucial considerations come into play. These may include locking in favourable exchange rates, minimising transaction costs, and mitigating currency risk. An FX broker can provide valuable insights and strategies to navigate these complexities, ensuring that the financial aspect of the purchase aligns with the buyer’s best interests. Additionally, the ability to access a wide range of currency products and services, such as forward contracts, market orders, and currency options, empowers buyers to optimise their international payments while gaining a competitive edge in the foreign exchange market.
From researching and selecting the ideal vehicle to negotiating the purchase price and arranging for its transportation, the process of acquiring a luxury, classic, or supercar from abroad demands meticulous attention to detail. By enlisting the services of an FX broker, such as Fiscal FX, with a deep understanding of cross-border transactions, buyers can navigate the financial intricacies with confidence and ease. Leveraging the expertise of an FX specialist ensures that international payments are executed seamlessly, enabling buyers to focus on the excitement of acquiring their dream car while leaving currency-related concerns in capable hands.
With the support of a seasoned FX broker specialising in international payments, enthusiasts and collectors can embark on their overseas car buying journey, knowing that their currency exchange needs are expertly managed.
How Fiscal FX Can Help
Competitive Exchange Rates: Get competitive rates for your international payments when buying a car from aboard.
Market Insights: Receive expert guidance on the best times to exchange currencies.
Secure Transactions: Receive safe and swift international payments.
Buying a luxury, classic, or supercar from abroad can be an exciting and rewarding experience. With Fiscal FX by your side, navigating the complexities of international payments becomes seamless, helping your dream car arrive without financial hitches.
For personalised guidance on international payments, talk to our experts at Fiscal FX.
