Buying a new car just before emigrating

[Bromley86]

We've been looking at the cost of shipping one of our cars over vs. selling it and buying over in NZ. So far, looks like a good idea. We also thought about selling it and getting a newer 2nd hand car over here as the prices are in our favour, but then you have to add 15% GST as we'll have owned it for less than 12m.

But then I saw this.

YOU CAN SAVE up to 20% VAT
If the vehicle is permanently exported <snip>
As an extra bonus if you look for a VAT qualifying car, you may be able to claim an extra 20% off the UK purchase,but please check with your local tax office first, an example of this is given below, and also please link to our cars that are VAT qualifying.

So, not only can you claim back the VAT on new cars when exporting to a non-EU country, but if you can find a VAT qualifying 2nd hand car (broadly speaking, I think, one that was previously owned by a business for use in that business) you don't pay VAT on that. Suddenly that 15% GST hit doesn't look so bad as you save 20% VAT on the purchase.

Has anyone done this?

[womblenz]

Hi Bromley - Great question we are kind of considering this too - so hope someone has done this.
http://www.customs.govt.nz/news/reso...Sheet%2029.pdf
this fact sheet indicates that depreciation needs to be factored into your calculation for cost savings too and starts at just 3 months of ownership, and shows a good calculation for costs

[Bromley86]

Thanks for that Womble. from the UK regs side, you might find this link useful: Personal Export Scheme. Looks like the sweet spot is exporting between 4 and 6 months to maximise the depreciation (you can use the vehicle in the UK for up to 6 months), although I doubt anyone's emigration ever goes that to plan .

[Imoveu]

I can't help you with the UK side of things, but please keep in mind that while you can import a vehicle to NZ that you haven't owned for 12 months - there are still certain regulations that could surprise you.

If you're importing a petrol vehicle it MUST be manufactured AFTER July 2010 - if it's prior to this it wont be able to be road registered (The vehicle will however still clear customs and Quarantine the issues will arise when it goes to compliance)

If the vehicle is a Diesel the cut off date is October 2007, anything prior to this again will have the same issues as above.

[Super_BQ]

We've imported a brand new Fiat Ducato RV from the UK and the auto dealer was very helpful in claiming the 20% VAT Exemption on exported vehicle. I would be cautious on exported a 2nd hand vehicle to NZ without knowing the car's complete history. It's also important to know that NZ Customs & NZ Road registration compliance are mutually exclusive. That is, NZ Customs doesn't care what vehicle you bring. The underlying problem is getting the vehicle road safe and compliant for use on NZ public roads. No person buying will want a car that can't be driven on the roads.

Also, shipping is insanely expensive. Our 6.3m long Fiat costed nearly $10K NZD RORO rate ex-Southampton port to Lyttleton port NZ.

[mylesdw]

$10k is a lot. Was it expensive because it is too tall for a container?

[Super_BQ]

RORO = roll on roll off. It could not be fit into any container. Shipping agent said shipping by RORO attracts highest cost but in a container, the difference may only be 20%.

[JennyG]

We bought our Renault grand scenic with us (pre owned) mainly because we had too much stuff for a 20ft container and loads of space left in the 40fter. Price difference between the 2 was about £1000 gbp plus costs associated to importing a car. The biggest problem we had was the aa couldn't decode the VIN so I was emailing back and forward to the uk for a week trying to fix that. So make sure you get the VIN Specification for the car from the manufacturer (especially if it's a Renault! )

[Bromley86]

Thanks all.

Anyone wondering how much it will cost for a normal-sized car, apparently $3,400. I haven't called them yet to see if there are any hidden costs, whether you can fill the rest of the container, etc, but it seems to be fairly above board.

I can't help you with the UK side of things, but please keep in mind that while you can import a vehicle to NZ that you haven't owned for 12 months - there are still certain regulations that could surprise you.

If you're importing a petrol vehicle it MUST be manufactured AFTER July 2010 - if it's prior to this it wont be able to be road registered (The vehicle will however still clear customs and Quarantine the issues will arise when it goes to compliance)

If the vehicle is a Diesel the cut off date is October 2007, anything prior to this again will have the same issues as above.

Thanks Imoveuu. I don't suppose you have a link or any further info so I can read up about this?

[Dave in NZ]

Thanks all.

Thanks Imoveuu. I don't suppose you have a link or any further info so I can read up about this?

Here you go

http://www.nzta.govt.nz/vehicle/importing/