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1. Sourcing the Vehicle
Selection and Inspection:
Osaka Auto Traders would first need to source the vehicle. This can be through auctions, dealerships, or private sales in Japan. Most used cars in Japan go through auction houses like USS Auctions, JU Auctions, or Baya Auctions.
Vehicle Inspection: Ensure the vehicle is inspected, usually through services like JEVIC (Japan Export Vehicle Inspection Center) or independent assessors. This is critical to verify the vehicle’s condition and compliance with UK regulations.
2. Vehicle Purchase
Bidding and Purchase:
After identifying the vehicle, the purchase is made either through bidding at auction or directly from the dealer. Once the bid is successful or the price agreed upon, payment is made to the auction house or seller.
Payment: Osaka Auto Traders would arrange payment through a bank transfer, ensuring funds are available for the final purchase and export costs.
3. Exporting the Vehicle from Japan
Export Documentation:
The trader needs to secure essential documentation, which includes:
Shipping Arrangements:
Osaka Auto Traders would need to book a shipping slot on a Roll-On Roll-Off (RoRo) vessel or container service. RoRo is generally cheaper for used car.
Shipping Company: They would coordinate with logistics providers such as NYK Line, K Line, or MOL for sea freight services to UK ports like Southampton or Bristol.
Shipping Duration: Expect a shipping time of 6-8 weeks, depending on the service.
4. Importing into the UK
Port Arrival and Customs Clearance:
Customs Declaration: Before the vehicle arrives in the UK, the auto trader must complete a customs declaration. They can either do this directly via the HMRC system or hire a customs agent to handle it.
Required Documents:
Bill of Lading (from the shipping company).
Original Export Certificate and translated version (Japanese to English).
Commercial Invoice (showing the vehicle’s purchase price).
Vehicle Identification Number (VIN) for customs declaration.
Duties and VAT:
Import Duty: 10% of the purchase price.
VAT: 20% of the vehicle’s total cost, including the purchase price, duty, and shipping.
5. Vehicle Compliance
Single Vehicle Approval (SVA) or IVA (Individual Vehicle Approval):
To be legally driven in the UK, most Japanese imports need to pass an IVA or SVA test. This ensures that the car meets UK road safety and environmental standards.
Common modifications may include adjusting headlights for left-hand driving, rear fog lights, and speedometer adjustments to mph from km/h.
6. Vehicle Registration with DVLA
Documentation for Registration:
Road Tax and Number Plates:
7. Final Preparations
Vehicle Insurance:
Ensure that insurance is arranged before the car is driven on UK roads. Most traders would have motor trade insurance to cover multiple vehicles.
Delivery or Sale:
After registration, the car can be delivered to customers or displayed for sale in the UK market.
8. Cost Overview
Purchase Cost in Japan:
Varies by make, model, and condition of the car.
Shipping Costs: Around £800 to £1,500 depending on the shipping method.
Import Duty and VAT: As mentioned above, 10% duty and 20% VAT.
Compliance Modifications and IVA/SVA Test: Usually costs between £500 and £1,500.
Registration and Road Tax: Registration fees are around £55, with road tax depending on the vehicle’s emissions.
9. After-Sales Support
Warranty:
Ensure that any warranties or guarantees offered to UK buyers are valid for vehicles imported from Japan.
Servicing and Parts:
Traders might need to arrange after-sales services for imported cars, including sourcing parts that may not be available locally.