Can you Get Finance on An Imported Car in Australia?
Looking to import a car into Australia but not sure whether you can get finance to cover part, or all of the cost of the vehicle?
In Australia, personal imports are the backbone of some of Australia’s best car scenes. From the ultra-high-end supercars, right the way through to the classics, the JDM-cult favourites, and everything in between – personal imports are a sometimes costly but rewarding way to secure a unique vehicle from overseas.
In this article, we’ll look at the regulations surrounding personal imports and whether you can use a car loan to finance part or all of the cost of an imported vehicle, as well as special considerations that you should be aware of when it comes to finance and personal imports.
Table of Contents
- What is a personal import?
- Vehicle import laws in Australia
- Can you finance an imported vehicle?
- Considerations with financing an imported vehicle
- Other cost considerations of personal imports in Australia
Vehicle import laws in Australia
Australia made wide-reaching changes to the Motor Vehicle Standards Act back in 2016. The reforms saw updates to legislation which had remained untouched since 2000 and meant that, from December 2019, Australia would increase the access to specialist, classic, and luxury vehicles by loosening overseas import laws.
The reforms which were viewed as a win for the car enthusiast community meant a new, more simple process for importing cars that don’t meet the conventional regulations in Australia, as well as clarifying information around supplier responsibilities during recalls, and implemented new vehicle identification measures to deter theft.
Can you get finance on an imported vehicle in Australia?
Yes, you can finance an imported vehicle in Australia, however, the process is more complex than financing cars that are sold locally. Depending on whether you are buying a vehicle that has previously been imported, or you plan to personally import the vehicle will determine whether or not you will be eligible for a loan.
When importing a vehicle privately, buyers are not able to access the same benefits of a locally sold car (pre-purchase finance) which means that the cost of importing the vehicle must be absorbed by the buyer. Once the vehicle reaches local shores, buyers will then be responsible for compiling the vehicle and paying for the vehicle in its entirety (depending on the process).
Finance for imported vehicles is, in most cases, deemed to be higher risk so require extra safety measures and strict risk assessments which can lead to higher costs if they are approved. Speak to a specialist like Credit One who can help you through the process and understand your borrowing power based on when and how you intend to import the vehicle.
Considerations with financing an imported vehicle
Finance and car loans for imported cars come with certain risks which can lead to higher rates for the consumer. Imported vehicles come with the burden of uncertain resale value, as well as less question marks around reliability, and access to parts, warranty and repair networks which can mean that they are deemed ‘high risk’ for lenders.
Other cost considerations of personal imports in Australia
Importing a vehicle into Australia can be a rewarding, but also costly exercise. If you’ve got your heart set on a car from overseas, then it’s important to be aware of the costs involved with importing a car into Australia – most of which will not be covered by your car loan or insurance on an imported car, these include:
- Compiling the vehicle
- Registering the vehicle
- Tax and duties associated with importing the vehicle – GST, Luxury Car Tax (LCT), and Duties may also be applicable.
- Shipping and customs costs
- Insuring the vehicle – for vehicles on the SEVS list, it’s important to check ahead of time to ensure that someone will be able to provide insurance for the vehicle.
