is it a good time for importing cars from the uk

kevoc85

hi,i was thinking of importing a few cars from uk to make a few pound on the side, is it worth it, in the current economic climate

mickdw

If you could sell them. Having said that, it you were not greedy and sold the cars for small profit, it might work as you would be significantly cheaper than most. Would you take trade ins?

kevoc85

That was what i was going to do just take profit of 1000 euro per car but also have my flight ferry accomadition covered i think i would be able to shift them 04/05 tdi golfs, focus for around €7-8k inc vrt.regarding trade ins it would have to be worth my while i suppose

EPM

you could get away with it but i could see it going wrong big time when you start taking in cars from people. You could wind up with a few sale proof cars if you weren't careful. You could always do it one at a time maybe to test the water a bit though. It could make sense if you were selling good cars at not much more than cost!

carface

kevoc85 wrote: »

hi,i was thinking of importing a few cars from uk to make a few pound on the side, is it worth it, in the current economic climate

Speak to revenue about getting yourself registered for vat,obtaining a T.A.N.
(traders accont number),get yourself an accountant,get trade insurance,
premises,get trade plates,get on carzone,gbg,etc...buy cars/vans/jeeps
in north or uk...dont be greedy with prices,take(irish) trade ins...organize warranty...you will be a popular guy everybody loves part time cardealers.
p.s. it might be a while before you have to worry about profit.
Dealing in imports for resale(as a side line money spinner) is simple in theory but has implications taxwise,moneywise,custums wise,insurance wise.

Tony Broke

kevoc85 wrote: »

That was what i was going to do just take profit of 1000 euro per car but also have my flight ferry accomadition covered i think i would be able to shift them 04/05 tdi golfs, focus for around €7-8k inc vrt.regarding trade ins it would have to be worth my while i suppose

Where are you getting 05 Golf tdi's for 7k inc vrt?

100k miles plus?

kevoc85

Tony Broke wrote: »

Where are you getting 05 Golf tdi's for 7k inc vrt?

100k miles plus?

have an uncle who lives in the uk and who is in the motor trade so would have no problem sourcing good quality cheap cars.

unkel

Dealing in cars is the last business you should consider getting into at the moment tbh

Tony Broke

unkel wrote: »

Dealing in cars is the last business you should consider getting into at the moment tbh

Exactly.

05 Lancer 1.6 sub 6k

http://www.driving.ie/usedcars/index.cfm?fuseaction=car&carID=1287455

05 Focus 1.6tdci only 48k miles sub 7.5k

http://www.driving.ie/usedcars/index.cfm?fuseaction=car&carID=1313510

Peugeot 307 1.6 HDi sub 5k.

http://www.driving.ie/usedcars/index.cfm?fuseaction=car&carID=1308949

They are going to get cheaper.

carface

kevoc85 wrote: »

have an uncle who lives in the uk and who is in the motor trade so would have no problem sourcing good quality cheap cars.

Try one at a time.Clear it here as by law a private person must do, nct it,service it. tax it so as to make it legal on the road here.
When you get a potential buyer explain you are a private guy selling the car and just want 1000euro profit on your outlay and dont forget your uncles twist. Also explain you want cash payment as it is only a pastime of yours on the side and you are not going to cover any problems that might occur.
If they need time to think about it, Try to hurry them up by telling them you need to book a flight and do the same again with another car.
best of luck

kevoc85

Tony Broke wrote: »

Exactly.

05 Lancer 1.6 sub 6k

http://www.driving.ie/usedcars/index.cfm?fuseaction=car&carID=1287455

05 Focus 1.6tdci only 48k miles sub 7.5k

bought one these my self 2 months ago from uk costing me under 5k inc vrt its on advets at the moment
http://www.driving.ie/usedcars/index.cfm?fuseaction=car&carID=1313510

Peugeot 307 1.6 HDi sub 5k.
+ vrt its on uk plates
http://www.driving.ie/usedcars/index.cfm?fuseaction=car&carID=1308949

They are going to get cheaper.

there is still a market for these type of cars

Tony Broke

kevoc85 wrote: »

there is still a market for these type of cars

Its getting smaller all the time though.

What could you get me for 7k?

I would like one of a diesel Mazda 3, Focus, Golf, not too pushed which one but if I had to pick Mazda 3 saloon.

-Chris-

Personally, I think you could have made a few quid doing this mid/late-last year, I think you've missed the boat at this stage.

Sounds like an idea, but my opinion (and we all know what they're worth...) is that you shouldn't buy to sell, you should buy what you've already sold - i.e. find the customer and source the product for them, rather than getting a product and trying to find a customer for it. Less financial exposure.

carface

Hi kevoc85,
listen mate you need to be careful here. Your lovely 05 focus does not come with the new cheaper tax(neither does the private sale import(uk reg)05 307
1.6hdi. Also your reg covered does that mean you have not cleared it yet.
Revenue are not stupid and could be reading your post boards.ie is not a secret club. Also stating you paid 5k inc the cost of vrt and advertising it at 7995euro a full 5euro short of 3k profit is not the brightest thing to do.
Also vrt on your car will cost 1600euro so 5k-1600-boat/flight-currency diff-your uncles profit=tiny cost price????????????05 focus 1.6tdci@ auction in uk with 80k will cost you more than that. So beware of uks massive stolen car rings(warn your uncle also) this may only come to light when you go into revenue to clear your car if not safely cleared already.
all the best

kevoc85

carface wrote: »

Hi kevoc85,
listen mate you need to be careful here. Your lovely 05 focus does not come with the new cheaper tax(neither does the private sale import(uk reg)05 307
1.6hdi. Also your reg covered does that mean you have not cleared it yet.
Revenue are not stupid and could be reading your post boards.ie is not a secret club. Also stating you paid 5k inc the cost of vrt and advertising it at 7995euro a full 5euro short of 3k profit is not the brightest thing to do.
Also vrt on your car will cost 1600euro so 5k-1600-boat/flight-currency diff-your uncles profit=tiny cost price????????????05 focus 1.6tdci@ auction in uk with 80k will cost you more than that. So beware of uks massive stolen car rings(warn your uncle also) this may only come to light when you go into revenue to clear your car if not safely cleared already.
all the best

hi carface
Thanks for above info. the focus has been my daily driver for the past 2 months( great car so light on diesel) and is cleared. the pic is when i just bought it and i bought when the sterling was 97. but the 5k is just what i payed for it inc vrt and doesnt inc flight ferry ect when i bought it i had a hpi report done and all was clear. regarding stolen car rings im aware of this seen a programe on rte a while back where the guy bought the merc for 20k and was stolen what a sicknor.so if a car was stolen in the uk it should show up on the hpi check.
thanks

Esel

Revenue are not stupid.

lifer_sean

Yes you can make a few quid by importing cars and selling on, but it's very marginal if you are doing small volumes and if you stay within the law. If you are doing reasonable volume (say stocking 12-15 cars at a time) then it's viable.

You are entitled to bring in a few cars a year and register in your own name, and sell on after a few months. I'm not sure what the Revenue regard as the limit to classify as a dealer but it's of the order of 3 or 4 cars a year. Remember that you have to give your PRSI number when paying VRT so they have enough info to trace the activity. Also unless you have a TAN number you must register the next working day. If you habitually have a UK reg car outside your house then you can be sure that it will get noticed / someone will report you. I've been reported twice even though I have a TAN number.

To get a TAN number you must register for VAT, and you must have a premises with correct (commercial) planning permission. Once you are registered for VAT you are liable for the 6.5% difference in the Irish and UK VAT rates, so you need to factor that in to your profit and loss. Then you pay VAT on your margin, and incoe tax on what's left. TBH, the VAT is a minefield and is the biggest single headache with the business.

Trade insurance is easy and not too expensive. Garage plates are not very expensive either, but you will not get these unless you can prove that you have paid rates up to date on a commercial premises.

Buying to order vs buying for stock ... I'd vote for buying for stock. Several problems with buying to order. Firstly people change their minds - happened me five times last year. I still have three of the vehicles six months later, and will lose money on them if they ever sell. Secondly, if you are in UK for a limited time looking for one type of car in particular then you are under huge pressure - you will walk away from something that's value (because it's not exactly what you are looking for), and will end up giving big money for a car to drive home. If you have someone buying for you then that helps a lot. Also if you have a return flight in case you need it it gives you the option of going home if the search fails, and the flights are so cheap nowadays the cost doesn't matter.

At the moment used cars (at good prices) are very scarce in England. For example, one of the large auction chains would normally have 15-16,000 used cars in group stock, but has been running at half that (8000-9000) for the last month. Again if you have someone looking for you in England then you can sit at home until they find the right car for you, so that helps. Just make sure that your buyer understands the Irish market which is quite different ... what sells well there doesn't always sell well here.

Bottom line is, I'd recommend to do the 3 or so cars a year that the Revenue will allow (and register / drive them yourself for a while), or else keep a large stock. If you are in between then the overheads will make short work of your profit.