Importing Cars from UK: Duties and Taxes

All Australian import car buyers must pay customs duties and taxes when importing a car from the United Kingdom. There are many regulations in regard to this. An expert importer can make purchasing an import car easier. You also will need a lender that specializes in import financing.

Australia Duties and Taxes for United Kingdom Imports

You must pay duties and taxes when you import cars from the UK. This applies whether you import the car as a citizen or business. The Australian Customs and Border Protection Service regulates imports. Various cars have their own classification; however, customs only allows select vehicles to enter the country. Customs calculates duties and taxes based solely on the car’s value. The rates can vary from zero to ten percent, with most fees calculated near five percent of the car’s value.

In addition to these fees, you must also pay a processing charge when importing a car from the United Kingdom, which can range from $40 to $150. In addition, customs classifies certain cars as luxury vehicles and assesses an additional 33 percent tariff.

Supercars Are in a Class of Their Own

Supercars — or high-performance sports cars — are in a special luxury car class. Customs classifies these vehicles by their displacement, which includes engine blocks over 3,000 cubic centimetres. Australian customs charges an additional fee specifically for this vehicle class. This is in addition the luxury tax; a ten percent sales tax; and a roughly $50 import processing tax.

These vehicles are subject Most Favored Nation (MFT) tax, imposed by the World Trade Organization (WTO). The organization created the rates to impose restrictions, as high as 20 percent, on goods originating from non-member WTO countries — such as the United Kingdom — however, the United Kingdom and Australia Trade Agreement Act overrides this treatment per WTO regulations. Because of this agreement, the MFN duty rate is five percent.

Financing an Import Deal Requires a Special Lender

For some, arranging financing to import a car from the United Kingdom can prove challenging. Bad credit can result from a medical emergency, a sudden job loss of other unforeseen incidents. For import cars buyers in this position, Specialty financiers can provide you with the bad credit car finance solution. Fortunately, they can help you as well if you are experiencing bad credit challenges. Traditional lenders do not normally serve this market.

Underwriting bad credit financing is a complex undertaking. Lenders require more information to complete the application process. Due to their complexity, these detailed loan processes are often handled by senior staff members.

In addition to a lender that works with bad credit, you will also need the financier to have experience servicing import cars loans. Most traditional lenders are not willing to assume the risk involved with back an asset that is currently not in the country. From their perspective, they have no recourse if the borrower defaults on their loan.

Car buyers importing cars to Australia from the United Kingdom must pay duty and tax fees to the Australian Customs and Border Protection Service. There are different rates for several vehicle classifications. Check out some car import specialists in Australia, they can help you navigate extensive customs regulations and paperwork when importing a car from the United Kingdom.