Imported vehicles: bargain or risk? What you should look out for

Import vehicles are popular on the used car market – and for good reason! They’re often cheaper than similar models in Germany and come with unique features that are hard to find locally. However, where there's a tempting bargain, there are often hidden pitfalls. From additional costs and complex customs processes to technical differences, there's a lot to consider. In this blog post, you’ll learn everything you need to know before bidding on an import vehicle.

1. Why Bid on an Import Vehicle?

Bidding on an import vehicle through auction platforms like Copart can have several appealing benefits:
•    Cost Savings: In many countries, especially the U.S. or Japan, used cars are often cheaper than in Germany. Even after transport and customs fees, an import vehicle might still be a great deal.
•    Unique Models and Features: Some models and features are only available abroad. Importing a car allows you to drive something rare and unique that stands out on German roads.
•    Good Condition and Low Mileage: In countries like Japan, strict inspection standards often mean that vehicles are well-maintained and have low mileage.
These benefits make import vehicles attractive, but it’s essential to understand the potential risks and extra costs before placing a bid.

Good to Know : Don't forget customs duties and taxes!
When importing from non-EU countries, customs duties and import sales tax apply. For vehicles from the USA, these are often 10% customs duty and 19% import sales tax. You should include these costs in your calculation to avoid unpleasant surprises.n.

2. The Hidden Costs of Vehicle Importing

Import vehicles may appear affordable at first glance, but additional costs can quickly add up. Here are the main costs you should consider:
•    Shipping Costs: Transporting a vehicle from overseas, such as from the U.S. or Japan, can vary widely. Expect to pay several hundred to thousands of euros.
•    Customs Duty and Import VAT: When importing a vehicle from outside the EU, customs duty and import VAT apply. For cars from the U.S., customs duty is typically 10% of the vehicle's value, plus 19% import VAT.
•    Registration and TÜV Inspection Costs: Import vehicles must meet German safety and emissions standards, which often requires an inspection by TÜV. This can lead to additional costs.
•    Re-registration and Paperwork: The costs for registration and issuing new vehicle documents can also add up, especially with older import vehicles where the registration process may be more complex.
These hidden costs should be factored into your budget to ensure that your bargain doesn’t turn into a financial burden.

3. Technical Differences and Necessary Modifications

Not all vehicles that are road-legal abroad meet German safety and environmental standards. Here are some technical aspects that often need to be adjusted:
•    Lighting: U.S. vehicles often have different headlights and taillights that don’t meet German standards. These typically need to be modified before registration.
•    Emissions Standards: European emissions standards are stricter than in many other countries. An import vehicle may require expensive modifications to meet Euro standards.
•    Odometer and Speedometer: Import vehicles from the U.S. frequently have mile-based odometers, which need to be converted to kilometers for German roads.
•    Electronic Systems: Electronic systems like navigation may also need to be adapted to European standards, as they may not function or comply with local requirements.
These modifications are usually possible but can be costly. Consult an expert beforehand to understand which adjustments are necessary for your specific model.

4. Check the Vehicle’s History and Documentation

The vehicle's history is crucial for import vehicles, as a complete service record and documented repairs are essential for registration and insurance in Germany. Here are some tips:
•    Vehicle History Report: In the U.S., providers like Carfax offer vehicle history reports, which include information on accidents, maintenance, and previous owners.
•    Translated Documents: For registration in Germany, you’ll need a translated copy of the vehicle’s paperwork. This translation often needs to be done by an official translation service.
•    Pre-Bid Inspection: If possible, inspect the car on-site or hire a reliable inspection service. Many countries offer specialized services that perform inspections and provide detailed reports.
A complete documentation not only simplifies registration but can also increase the resale value of the vehicle in Germany.

5. Legal Pitfalls When Importing a Vehicle

There can be legal challenges when importing a vehicle that buyers should be aware of:
•    Registration Issues: Some vehicles cannot be registered in Germany due to technical differences or missing documentation. Always verify that the vehicle meets German standards.
•    Warranty and Liability: Vehicles purchased abroad often lack warranty claims in Germany. This means that any repairs or parts replacement must be handled at your own expense.
•    Tax Requirements: Import vehicles may be subject to different tax rates and additional levies, depending on the model and age of the vehicle.
To avoid legal pitfalls, it’s worth consulting a specialist before bidding and familiarizing yourself with the specific requirements in Germany.

Conclusion: Is Bidding on an Import Vehicle Worth It?

An import vehicle can definitely be a bargain, especially if you're looking for a rare model or unique features. However, there are risks involved. Hidden costs, required technical modifications, and legal hurdles can make the import process more complicated and costly than expected.
If you’re still interested in bidding on an import vehicle, careful planning and budgeting are essential. Make sure to research all potential costs and have the vehicle thoroughly inspected before the auction. With thorough preparation and the right knowledge, owning a unique import vehicle can be a rewarding experience.
For more interesting articles about vehicle auctions and imports, visit Copart.de – your go-to source for auctions and automotive knowledge.