WANT GREAT VALUE FOR YOUR CLASSIC CAR? CONSIDER EXPORTING IT TO THE UK!
Right now, we’re getting 0.46p to the dollar. That’s rubbish if you’re buying your DVD’s from the UK, but provides a unique opportunity to substantially increase your customer base if you have something to sell here in Australia.
Lately, we have seen a trend of savvy car enthusiasts making the most of this swing in the exchange rate. In many cases, it’s become increasingly attractive to look to Australian shores to purchase classic and historical cars.
A CHEAP CLASSIC
We recently wrote an article on the beloved marquee, MG. Looking at car sales online, right now there’s a surprising amount available on Australian websites. You can pick up a classic 1953 MG Midget in excellent condition for around $26000, with some increasing up to $43000 and beyond.
When converted that to British pounds that’s only £12000 to £18000 respectively. When you look across to the UK there’s a similar model, selling as a partial restoration only, for around for £17985! The majority of registered models are priced anywhere between £21000 to £25000.
Even when you factor in shipping and insurance it’s a substantial saving. Combine that with the fact that none of these cars have been driven on icy roads covered in salt and the concept becomes even more attractive. When moving overseas the standard option is roll-on/roll-off shipping, but for a classic car it’s worth considering a secure shipping container.
TAXES AND DUTIES
If the vehicle was manufactured prior to 1950, it can be imported duty free, and the VAT is reduced to only 5%! Even if the vehicle is manufactured after 1950 and is deemed to be of historical interest, you can still apply for what’s known as a BTI ruling, and if the UK government grant this, you will also only pay the 5% VAT on the import. This is great news for classic car enthusiasts as it greatly reduces the overall cost of your import.
As always, be sure to check import taxes and duty for changes. If the vehicle does not meet these prior requirements, or you don’t wish to apply for the BTI ruling, then currently import duty is 10% of the combined value of the car and the cost of shipping. You’ll also be liable for VAT, which is 20%, plus a £50 fee, and all of this is the responsibility of the buyer.