How to Buy a Car Overseas

Buying a car in your native country is challenging enough. Buying a car overseas can be downright daunting. You don't know the rules for importing or exporting, you don't know the prices, and you may not even know the language. How will you know if you're getting a good deal? How will you find a dealer? How will you get your car home? What kind of paperwork and taxes are involved? Fortunately, there are several things you can do to make the process a little less of a headache.

Instructions

1

Determine what car you want to buy. If you want to import the car into the US, make sure that the car meets the United States' safety, emission, and bumper standards. If you import a car that does not meet these standards, it can be exported or destroyed. The EPA and the DOT both publish those standards online. It is illegal to import cars from countries with trade embargoes.

2

Find a place to buy your car. This could be a dealer, individual, or auction. In some countries, it may be safest to buy from a dealer, especially if the country is notorious for taking advantage of foreigners. You may also have to fill out and submit your own paperwork if you buy from an individual. Always be skeptical when a seller tells you that a car meets all the standards for importation, because if a car meets all the standards, it is probably already being imported.

3

Arrange for payment terms and sign your contract. Keep the language barrier and currency exchange in mind. Your contract will have to be translated into English so that you can understand it. You will also have to negotiate a price based on fluctuating currency rates, and you will have to determine which currency you will pay in. Give the transaction enough time to clear before you leave the country: international transactions can take longer to clear than domestic transactions.

4

Make arrangements to ship your vehicle. Your car's undercarriage will have to be free of foreign soil, so have it thoroughly cleaned. You cannot have any personal items in the car when it ships. In order to clear Customs, you must have the shipper's original bill of lading, the bill of sale, and foreign registration.

5

You will have to fill out EPA form 3520-1 and DOT form HS-7. Your vehicle's engine must either have a manufacturer's label in English that verifies it meets U.S. emissions standards or proof of eligibility to import. Unless you meet certain exemptions, you will also have to pay a 2.5% duty, and you may have to pay a "gas-guzzler" federal tax. Shipments will be cleared at the first port of entry unless you arrange for your car to be sent in bond to a Customs port that is closer to you. Consider hiring a commercial customs broker to handle your entry.