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Buying imported vehicles typically involves some serious calculations. But this understanding eludes most of us, because society has rid us off the capacity to still our mind and take stock of bits and pieces of certain information and processes that matter to us. Likewise with imported vehicles, most people fall short of the understanding that:

1. Importing a car is a process

2. The process comprise various stages

3. Each stage “may” have a price tag (from transportation/shipment to customs clearance to registration and certification, etc).

4. The possible price tag in each stage will culminate in a higher price for the imported vehicle; hence, they tend to be expensive.

But before we can briefly emphasize some of these factors, let’s begin by looking at the three classes of imported vehicles.

 3. types of imported vehicles

As a newbie, it's extremely important to understand that not all imported vehicles are of the same make and model. In essence, imported cars are categorized into three significant types:

1. Grey import

A grey import refers to a new or used vehicle imported outside of the region where the importing country is part of. For instance, when you import a vehicle (new or used) from a country other than Australia or New Zealand, or any other south pacific island nation.

Typically, grey imports originate from Japan. This may be a good thing, of sorts. Let’s find out why:

 Pros

• Often come with unique features at a reasonable price
• May not have rust if bought from a country with a warmer climate
• Rare models from Japan (and others) fall into this category, making these cars desirable for enthusiasts
• A majority of the imports are right-hand drive as compared to PNG
• Japan has no import taxes, making Japanese grey imports even cheaper
• Japanese culture values taking good care of their belongings, meaning the used cars you buy from Japan will often be found in excellent conditions
• Just like everything else on the market, grey imports also come with drawbacks. After all, it’s good to know what you’re getting yourself into, if you understand what a grey import is, and you’re anticipating one.

Cons

• The feel of the car may be different. This can include a different-feeling brake balance, stiffer suspension, and a lower gearbox ratio.
• Financing can be more difficult (you can probably imagine why – currency conversion, long-distance communication, etc.)
• Pricier insurance, especially if the car is not sold locally
• Sourcing parts for unusual models is tricky
• You cannot test drive
• Cars appear cheaper as they don't include hidden costs such as transportation and duty
• You don't know the service history
• Most countries have left-hand drive

Judging by observing these pros and cons, you may assume that all imported vehicles come with equal disadvantages. Fortunately, that's not always the case.  

In as much as buying a grey import from your trusted or reputable car dealer, there's really nothing much to worry about at this point.

A car dealer's expertise surrounding grey imports from Japan or any other non-south pacific countries makes this process simply easier - hence, your best bet.

2. Personal import

A majority of prospective car buyers most often than not fail to see the benefits of this particular vehicle import type, may be because of the potential issues they involve. 

However, if done correctly, your personal import car can come with a bargain price with a few practical features to justify your cause.

The process of buying a personal car is no different to buying a vehicle from a private seller. At this stage, you're the judge, jury and executioner when deciding if the seller is reliable, and if all the other baggage accompanying the car makes sense. 

This can include confidential information, accident reports, repair and maintenance history, and if it has succumbed to any theft at all.

To avoid, as best as possible, the risk of buying a vehicle shrouded in mystery, you might have to ask some questions, in order to arrive at these pieces of information:

• Accident History – provide an extensive history of just about everything your car has been through, including title information, accident and repair history, odometer rollback, manufacturer recall, and even nuclear contamination risk. For instance, reliable websites such as CAR VX and Japan Car History Check provide this kind of information for those looking to buy Japanese cars.
• Inquire with agencies that are responsible for keeping vehicle records (MVIL, Department of Transport, or Road Traffic Authority, etc)
• While accessing vehicle records may be cumbersome, the one thing to remember is to get your vehicle records from a reliable source. A quick Google search should reveal which agencies these are, and use your local understanding to decide their reliability.

3. Parallel imports

Completing this list of different types of import classes is parallel imports. This class represents vehicles (new or used) that are imported from a country that shares the same region as the importing country.

For instance, PNG importing vehicles from Australia or New Zealand, other than any other non-south pacific country.

And as it is with grey imports, so it is with parallel imports; they come with their own unique set of pros and cons. Nevertheless, they are usually of high demand due to their affordable nature. The main reason being, parallel imports are usually cheaper to import from their country of origin, than a same model sold locally.

Factors that narrate the affordable nature of parallel imports, on the whole, revolve around exchange rates. Another clear-cut factor is that parallel imports are often popular because of their quick arrival time, and shorter waiting lists, compared to the other two categories.

But this doesn't necessarily mean that parallel imports are perfect. Like every other vehicle - import or otherwise - they are susceptible to durability, at the end of the day. 

Additionally, the warranties that accompany each parallel import may at times facilitate complications, if an issue develops with the vehicle.

Factors behind the hefty price tag

The process of importing a vehicle will typically revolve around ensuring licensing and compliance before the vehicle is shipped. 

Then comes the arrangement of transportation and warehousing after it reaches its destination. Now, the car dealer or private buyer must obtain customs clearance and pay the required taxes before the imported vehicle(s) can be released. 

Some of the factors behind high-priced imported vehicles are: 

• Shipment/transportation 
• Customs clearance (a process in itself)
• Obtaining IEC (Import Export Code)
• Payments of applicable duties and taxes
• Car insurance
• File Bill of Entry

Now that you know about these additional costs that influence the high-priced imported vehicles, as well as the three classes of imported vehicles and what you can expect when you decide to buy one, you can easily weigh your options before moving forward.

All in all, the only thing you need to remember is to buy from a car dealer you trust, with all these fine prints in mind. 

Disclaimer

This article is meant for informational purposes only. Marketmeri digs into the details of a specific topic related to the motor vehicle industry and educates its readers about what is and what is not of that topic. Therefore, not all articles are intended to be construed as professional advice. It is your responsibility to seek help from motor vehicle experts regarding your situation for this matter.