Import A Car From Japan - Best Japanese Car exports - I Want to Import a Car from Japan
Why Import A Used Car?
Why should one be interested in importing a used car? It is either because of the following:
1. The total cost of importing the car is significantly less than the cost of similar cars in the local markets and show rooms
2. The model or the type of the car is not available in the local market
3. You are a car collector and the car in question is not in your collection.
Finding the car of your dreams
With the internet, this may take you a few hours or days depending on what you want. It is done like this: On the internet, go to Google Search and search for the car you want, say, “Used Toyota Corolla LE”, “Used Cars”, “Japanese Used Cars”, “Used Autos Exporters” and so on and so forth. Whatever you choose, Google will provide several pages with listing of probable exporters of used vehicles. It is through the web pages of the listed suppliers you will have to browse until you find the car you want.
Japanese used cars
Consider Price of the Car
You will have to consider the following:
1. The price of the car – check if the price is free on board (f.o.b) price, cost and freight (c+f), cost insurance and freight (c.i.f) price
2. The cost insurance and freight (c.i.f) price is the one you will need. If the supplier does not list the c.i.f price to the sea port of your destination, then you will have to email them for the c.i.f prices.
Your Local Clearing and Forwarding Agent
Now you have your chosen car and the cost insurance and freight (c.i.f) price to your local sea port. The next thing to do is to go to your local clearing and forwarding agent with your cost insurance and freight (c.i.f) price of your chosen car. You will need to ask them the following information which will be provided free and your local clearing and forwarding agent will be very happy to do so because they will be hoping to get business from you:
1. Your local clearing and forwarding agent fee to clear your chosen car through customs to your home or premises.
2. Maximum age of a car to be allowed to be imported in your country. Some countries have a limit of only 3 years; others have a limit of 8 years, whilst in some other countries there is no limitation.
3. Are there export inspection certificates required for importation of your car and which export inspection companies are allowed to do such inspection for the country where your car is originating from?
4. What are the custom duty and VAT rates for the model, age and engine rating of your chosen car?
5. Any other charges like storage charge rates, handling charges at your local sea port, etc.
6. Finally but very important: are there any other import regulations and restrictions administered by your country that would prevent importation of your chosen car?
Toyota Corolla LE used autos
Take Your Imported Car for a Road Test
At last your “new” car will be delivered to you. You will be happy. You can as well be sad. Take it for motor vehicle registration if they will not have done so at the point of entry. Get it a road license and get it a road insurance policy – all these cost money. Next take it for a road test, drive with your spouse and children in it, let your girl friends and boy friends ride in it, go for your dad and mum – let them hike a lift in it – they will bless it. Let everybody knows there is a new machine in town by the name “used car”. This is a great success, spread the word but do not tell them you paid anti-dumping tax.
Car of Your Dreams
Enough Money in Bank
With this information at hand, the next question you need to ask yourself is whether you have enough money. You need to have enough money in bank because when things start flowing, they move very fast you may not have time to look for more money, resulting in heavy penalties.
Toyota Corolla LE from Japan
And now making the final decision as to whether your chosen car is a good price so you can proceed with importation. Let’s look at an example that you are in London and you want to import a 2 years-old used car, Toyota Corolla LE from Japan. To calculate the final price of your car up to your home or premises, let’s assume your Japanese supplier and your local clearing and forwarding agent have given you the following quotes:
1. FOB price of Toyota Corolla LE equals $4700.00
2. Freight cost to a sea port near London equals $720.00
3. insurance cost up to the port equals $200.00
Total C.I.F
Total c.i.f up to a sea port near London equals 4700+720+200 equals $5620.00
4. Custom duty rate is 20% of fob price equals $940.00
5. VAT rate is 15% of c.i.f equals $843.00
6. Handling rate is $30.00 for Toyota Corolla LE equals $30.00
7. Storage rate is $0.00 for the first 5 days and $120.00 per day for Toyota Corolla LE equals $0.00 for you because you have enough cash in bank and your local clearing and forwarding agent is efficient, otherwise this is where you can regret ever attempting to import your chosen car. A delay of 15 days may mean an additional $1200 + VAT in storage charges.
8. Export inspection company fee of 2% c.i.f equals $112.40
9. Anti-dumping fee of 1.5% of c.i.f equals $84.30
Total Taxes
Total custom duties, taxes and port charges equal 940+843+30+0+112.40+84.30 equals $2009.70
10. Your local clearing and forwarding agent’s fee equals $350.00
11. Transportation charges from the sea port to your premises or home equals $90.00
Clearing and Forwarding Agent’s Fee
Total fee to pay your local clearing and forwarding agent and transportation equals $440.00
Total Cost of Importing Your Vehicle
The total cost of importing your vehicle from the Japanese supplier to your home or premises is equal to 5620+2009.7+440 equals $8069.70
Questions to Ask Yourself
If therefore the cost of a 2 years old Toyota Corolla LE is $14000.00 in the local market, you have to ask yourself the following questions in order to proceed with importation of your chosen used car:
1. Is investing $8069.70 to get a car valued at $14000.00 worthy the risks and bother?
2. If you would import your chosen vehicle successfully and make a small profit, can you import another used car and sell it through eBay so that you double your earning? And then another car, and another one?
Pro-Forma Invoice
Once you have made up your mind you want to proceed with importation of your chosen car, then you will have to get to your Japanese used car supplier and ask for the following through email:
1. Ask for a pro-forma invoice of your chosen used car from your Japanese used car supplier. The pro-forma invoice should show fob cost, insurance and freight prices. In addition it should show delivery date and that payment is by irrevocable letter of credit; repeat, payment is by irrevocable letter of credit. Its irrevocable letter of credit of credit because there is no way you are going to entrust $5620.00 to a stranger (Japanese used car supplier) you don’t know.
2. That your chosen used car will have to undergo a pre-shipment inspection by the company given to you by your local clearing and forwarding agent.
3. Name and address of your Japanese used car supplier’s bankers to enable your bankers initiate an irrevocable letter of credit.
Two Things to Do
Once you have the pro-forma invoice, there are two things you will need to do.
1. You will take one copy of the pro-forma invoice to your local office of the pre-shipment inspection company. Here you will have initiated a contract with the pre-shipment inspection company. Here the pre-shipment inspection company will send a copy of the contract to your Customs duty department to alert them of your importation of a used car. Another copy of the contract will be sent to pre-shipment inspection company offices in Japan alerting them to go and inspect your chosen used car before it is shipped.
2. You will have to take another copy of the pro-forma invoice to your bankers, foreign department dealing with letters of credit. Here, your bankers will put $5620 of your money in a reserve such that you can not withdraw that money. By initiating an irrevocable letter of credit, your bankers will confirm to your Japanese used car supplier’s bankers that $5620.00 will be sent to them immediately your chosen used car is shipped to you. Once your Japanese used car supplier receives this information from their bankers, they will ship your used car (after pre-shipment inspection) to you. The shipping company will give them a bill of landing which is as good as the certificate of ownership of your chosen used car. Your Japanese used car supplier will take the bill of landing to their bankers and will be credited with $5620.00 in return. The bill of landing will be forwarded to your banker who will give it to you. It is this bill of landing you will use to get your chosen used car from the shipping company. The whole transaction will take about 30 days and you should be able to get your bill of landing before your imported car reach your local sea port. Irrevocable letters of credit is the safest means of payment there is and is used in transacting international merchandise worthy trillions of dollars worldwide.
Bill of Landing
When you get that call from your bankers, go pick that bill of landing for your imported used car and immediately enter into a contract with your local clearing and forwarding agent to clear from customs your imported used car. Before the ship carrying your imported used car dock at your lock sea port, your local clearing and forwarding agent will have done most paper work so that as soon as your car arrives, it is immediately cleared from customs without you incurring storage changes. Penalty from storage changes is what makes importing a second hand car uneconomical - avoid it at all costs.
Get a Road Insurance Policy
At last your “new” car will be delivered to you. You will be happy. You can as well be sad. Take it for motor vehicle registration if they will not have done so at the point of entry. Get it a road license and get it a road insurance policy – all these cost money. Next take it for a road test, drive with your spouse and children in it, let your girl friends and boy friends ride in it, go for your dad and mum – let them hike a lift in it – they will bless it. Let everybody knows there is a new machine in town by the name “used car”. This is a great success, spread the word but do not tell them you paid anti-dumping tax.
Japanese cars
Leverage for Huge Profits
Once this used car is with you, calculate again and again to see if you actually made a profit. If so, it’s time to leverage for huge profits. Ask your friends if they like your new machine of a used car. Mention the current local market prices of such cars. Note their reactions. If they do like your car, then this is the time to strike.
Showroom cum Storage
You may have noticed the ship will take a month to reach the used car to you. This should not discourage you – in fact this should be your showroom cum storage for selling used cars. With your new used car, list it on eBay. Soon your Toyota Corolla LE used car is sold off for, say, $14200. From your $8069.70 investment, you have made a cool $6000 profit.
Selling in High Seas
With your $6000 profit, repeat the same process this time importing 2 such used cars. But now you will need to ask your Japanese used cars supplier for fullest details and specifications including photos and videos. Once these two cars are shipped and are in high seas, list them with eBay such that when you make a sale, you will have your local clearing and forwarding agent deliver the used cars to your buyers instead of delivering them to your home or premises.
Accomplished Seller of Used Autos
So you see, what you started as a one used car importation has ended with you being accomplished seller of used autos who sell good used cars when they are on high seas.
The hubber's website is designed to help beginners and average readers make money online to supplement the few dollars they may be earning from their online trading – details of which you can find in my profile here, if you will.
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