HelpDesk

Justin Hynes answers your queries

Justin Hynes answers your queries

From Fernando Martin:

I'm planning to buy a Japanese import car over the internet. This would be a 1994 Nissan Largo 2.0 D. They provide the price of the car and that's it.

Could you help me on what else I should have to pay - any import taxes, road taxes, NCT?

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Where should I go and ask? Also, is the insurance more expensive when the car is imported from Japan? This is my first car so I would greatly appreciate any help.

We've had quite a few letters in on this topic. Unfortunately, it's a bit of a minefield, with a paper trail which can be measured all the way to Japan and back.

However, we'll have a go at answering the basic procedures involved in buying and bringing in a car from Japan.

Firstly, there is the sticky issue of just how you should go about buying the car and getting it shipped to these shores. Buying a car over the internet, sight unseen, is always risky. You have no idea of the real history of the car, no idea of its real condition and no real clue as to whether, ultimately, it's the right car for you.

The old adage that the camera never lies is misplaced when it comes to car purchase. Flat and dull paint can look perfectly adequate in photographs given the right lighting. There's also the question of damage to the car from rust, neglect, whatever. This is never revealed in pictures.

So, the first thing to do is enter into detailed dialogue with the vendor, by phone or e-mail. Try to establish, as best you can, the real condition of the vehicle.

If you're satisfied you're getting the real deal then you need to organise freighting. That involves booking a space on a ship. Once the shipping has been sorted and your car lands on the dockside, the real fun begins.

Firstly the car is liable for a fee to get it cleared by customs - a CCT. This is estimated as 10 per cent of the purchase price of the car plus the cost of the freight and insurance taken out for the shipping process.

So, if the car is worth €10,000 and the insurance and shipping were €1,000 the tariff would be €1,100.

That gets your car off the boat. Now it gets more complex. You will need to present customs with a Japanese deregistration certificate, confirming that the car has been taken off the books in Japan and is available to be registered in Ireland. This, naturally, is in Japanese and the Revenue here require the original plus a translation. Complicated.

Then you will need to pay VAT at 21 per cent, this time calculated on the price of the car plus the 10 per cent tariff already imposed. Therefore on your €11,000, you will pay an additional €2,310.

Once the car is landed and you can transport it away (not drive it because, as yet, you haven't taxed it) you have one working day to present it at the Vehicle Registration Office where the car will be assessed for Vehicle Registration Tax.

This is based on the current market value of the vehicle worked out on a fairly arbitrary system whereby the Revenue collates information from relevant sources ¨- motor industry manuals, website second-hand prices etc - and charges accordingly. This works out at 22.5 per cent of the current value on cars up to 1400cc, 25 per cent on cars up to 1900cc and 30 per cent for anything beyond that. If the car is a type not on the Irish market, the Revenue will associate it with the nearest model type and charge accordingly.

As you can see, the process is complex, time consuming and often frustrating. There are numerous customs clearance agents who will handle the dockside paperwork for a fee (and this can be expensive), but shipping is an added headache for the individual. There are companies which will handle that for you too, again for a fee.

The bottom line, to our mind, is that, if you can find a car within these shores that meets your needs, you would be better advised to pursue that option.

It may be a worthwhile procedure if you're after something exotic but in the case of your Nissan Largo (a 7-seater minivan) you may be better off trying to source the vehicle through existing importers here.

Michael McAleer is on holiday.

Send your queries to: Motors Help Desk, Fleet Street, Dublin 2 - or by e-mail to motorshelp@irish-times.ie